Customers at major energy firms including British Gas, EDF, E.On and Octopus Energy do not have long left to apply for a DWP scheme which could cut one of your bills this winter to nothing.
Gas and electricity prices are going up this October when Ofgem raises fuel prices by an average of 10 percent, which is expected will bring annual bills to somewhere in the region of £1,724 per year for an average household on typical use.
But a scheme run in tandem with the Department for Work and Pensions, The Warm Homes Discount, sees state pensioners offered £150 off their bills this winter.
Those same pensioners who qualify for the Warm Homes Discount could then also be eligible for the Winter Fuel Allowance of £300 under the new eligibility rules, bringing the total amount to £450.
With the typical household bill averaging £143.66 per month on the new price cap this winter, the handouts are the equivalent of reducing more than three whole monthly bills to £0 through the harshest winter months, if you’re a typical energy consumer. Those using below average – like a single pensioner living alone – will be able to stretch the discount even further across the winter months.
But eligibility for the Warm Homes Discount is based on whether a person was on claiming qualifying benefits on August 11, so you had to be claiming one of: Guaranteed Credit for Pension Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment Support, Housing Benefit, Universal Credit, Child Tax Credit or Working Tax Credits on or before August 11 to qualify for this year’s Warm Homes Discount, which will be paid from October.
However, if you missed that deadline, you can backdate your claim if you’re on Pension Credit by up to three months, or a claim for Universal Credit by one month, so it’s not too late to apply.
Even if you miss the Warm Homes Discount, you will be able to start a benefits claim now in time to claim the £300 Winter Fuel Payment under the new eligibility criteria for this winter.
The return of the Warm Home Discount scheme is a critical support for many households facing high energy costs this winter. With £150 automatically credited to eligible energy accounts, this scheme helps vulnerable individuals and families without the need for complex application processes.
A spokesman for energy company Grant Store said: “Reintroducing the Warm Home Discount comes at an important time as energy prices remain a significant burden for many. Sending out notifications and automatically applying the discount to qualifying individuals will help relieve some of the financial pressure on those most in need.
“As we approach the colder months, the Warm Home Discount scheme’s £150 reduction on electricity bills will be a welcome relief for low-income households. The DWP’s efforts to communicate clearly and implement the scheme efficiently show strong support for the most vulnerable during the winter season.
“For many, the upcoming winter brings concerns about rising energy costs, but the return of the Warm Home Discount scheme provides some security. The £150 discount, automatically applied to those eligible, will help ease the burden and prevent anyone from being left in the cold due to unaffordable energy bills.”