Huge Change To Major Energy Scheme Set To Give Nearly 3million More Households £150 Bill Discount

A HUGE change to a major energy scheme is set to give around three million more households a £150 discount on their bill.

The government is consulting on proposals that could see millions of more families gain access to the Warm Home Discount.

PAMore households could get the Warm Home Discount next year[/caption]

The scheme gives those on low incomes or benefits a one-off £150 discount their electricity bill.

The Department for Energy Security and Net Zero (DESNZ) said one in five families would be eligible for the help next winter.

Around 2.19million households across England and Wales claimed the support in the 2023/24 year, up from 1.55million homes the year before.

The fresh proposals would bring the total number of recipient homes to an estimated 6.1million.

It comes as the average household energy bill will rise £111 per year, as part of watchdog Ofgem’s price cap.

This is £159 per year higher than the price cap set for the same period last year and marks the third quarter in a row that costs have increased.

The rise is because of an increase in gas prices across Europe, caused by a slump in the amount of gas that is held in storage across the continent.

Energy Secretary Ed Miliband said expanding the Warm Home Discount can help “protect millions of families from rising energy bills, offering support to consumers across the country”.

Alongside a wider roll out the Warm Home Discount, the government is also looking to help households tackle debt.

The government said they are working with the regulator to speed-up proposals on a possible debt relief scheme.

Ofgem has been consulting on whether to introduce a debt relief scheme for people who have got behind with their energy bills during the energy crisis and may struggle to repay.

It aims to publish an update on these findings come spring.

Richard Lane, chief client officer at StepChange said he strongly “welcomed” Ofgem’s plans to work towards a debt relief scheme which will tackle historic debt.

The debt charity said its new clients are around £2,500 in the red due with their energy bills.

A number of energy suppliers are already offering schemes which help customers manage their debt.

Last week, British Gas announced plans to extend its “You Pay We Pay” scheme.

The initiative, which first launched in June 2024, matches customers’ energy debt repayments to help customers pay off their bills.

For instance, if a customer pays £100, British Gas will pay off £100, too, effectively wiping half the amount owed and getting them back on track sooner.

British Gas will also introduce a new feature so that customers can take payment breaks.

That means if you can’t afford to make regular payments you can still benefit from this help.

WHO IS ELIGIBLE FOR THE WARM HOME DISCOUNT?

The Warm Home Discount is a one-off £150 discount on your electricity bill.

You do not get the money paid into your account, but instead, your energy supplier takes the sum off your bill.

To qualify for the support you usually need to be on a low income or claim certain benefits.

If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.

Applications for the scheme opened in October, however, you may not get the help until next March.

To qualify you’ll usually need to be actively claiming one of a number of means-tested benefits during the qualifying week – which was in August.

The qualifying means-tested benefits are:

• Housing Benefit
• income-related Employment and Support Allowance (ESA)
• income-based Jobseeker’s Allowance (JSA)
• Income Support
• the ‘Savings Credit’ part of Pension Credit
• Universal Credit

You could also qualify if your household income falls below a certain threshold and you get either:

• Child Tax Credit
• Working Tax Credit

However, if you later launch a successful claim for backdated benefits, you may still be able to qualify after this date and once it’s confirmed.

If you qualify for the WHD, you should receive a letter telling you. These are usually sent between October and January.

WHAT SHOULD I DO IF I FALL INTO DEBT?

You should contact your supplier as early as possible to let them know if you’re struggling.

Energy debts are priority debts, which means there can be more severe consequences to not paying than with other types of debt.

Failing to engage with your supplier about your debt could also see them apply for a court warrant to forcibly install a prepayment meter in your home.

Once you’ve contacted your supplier about your debt problems, ask for an affordable repayment plan.

Your supplier should work with you to figure out a sensible amount you can pay towards your debts each month.

Your supplier may also allow you to apply for an energy grant.