The UK government is preparing to expand the Warm Home Discount scheme and the Energy Bill Discount, two key initiatives designed to help vulnerable households cope with rising energy costs.
Under the proposed changes, around 6.1 million homes could benefit from a £150 reduction on their electricity bills, an increase of three million additional households compared to previous years. The expansion is currently under consultation, with potential adjustments to the eligibility criteria.
As reported by Birmingham Mail, this scheme aims to support those on low incomes or receiving means-tested benefits, ensuring that more families receive financial assistance during the colder months.
Warm Home Discount Scheme: How It Works
The Warm Home Discount is a government initiative that reduces electricity bills for eligible households by £150, rather than providing a direct cash payment. The discount is applied automatically for those who qualify, helping to ease the financial burden of rising energy costs.
Last year, 2.19 million households benefited from the scheme, up from 1.55 million the previous year. With the proposed expansion, the total number of beneficiaries could rise significantly.
The government and Department for Work and Pensions (DWP) are leading this consultation, with a final decision expected soon.
Who Qualifies for the Discount?
To be eligible for the Warm Home Discount, households must meet specific criteria. Currently, the scheme supports individuals receiving certain means-tested benefits, including Universal Credit, Income-related Employment and Support Allowance (ESA), Income-based Jobseeker’s Allowance (JSA), Income Support, and the ‘Savings Credit’ part of Pension Credit.
Additionally, those receiving Housing Benefit, Child Tax Credit, or Working Tax Credit may also qualify, depending on their household income.
In England and Wales, eligibility extends to those on means-tested benefits who have high energy costs. However, the government is considering removing this requirement, which would allow more households to qualify.
Martin Lewis, money-saving expert, has also highlighted that the current system, which only supports those with high energy costs, is set to be scrapped. He praised the upcoming changes, which he believes will allow more people to benefit from the scheme.
In Scotland, the scheme follows similar criteria, with energy suppliers playing a role in determining eligibility.
Energy Suppliers Participating in the Scheme
Major energy providers are signed up to deliver the Warm Home Discount, including British Gas, OVO Energy, EDF Energy, E.ON, and Octopus Energy. Customers of these suppliers who meet the eligibility criteria should automatically receive the discount on their energy bills.
However, those who believe they qualify but have not been notified should contact the Warm Home Discount helpline as soon as possible.
What Changes Are Expected?
The proposed expansion of the scheme could significantly widen the pool of eligible households. Labour MP and Energy Secretary Ed Miliband has expressed support for the initiative, stating that it could help protect millions of families from rising energy bills.
Additionally, consumer advocates have welcomed the government’s consultation. Richard Lane, Chief Client Officer at StepChange, emphasised the importance of addressing energy debt.
He praised Ofgem’s plans to implement a debt relief scheme aimed at tackling historic debt among households facing energy struggles.
Deadline for Claims
Households who haven’t received confirmation of their eligibility but believe they qualify must act quickly. The deadline to contact the Warm Home Discount helpline is set for Friday, February 28.
Those who miss this deadline may risk losing out on the £150 energy bill support for this year. The government’s consultation is expected to conclude soon, with final decisions likely before next winter.
If implemented, the changes could provide much-needed financial relief to millions of low-income households across the UK.
