The Department for Work and Pensions (DWP) has issued a new update on the Warm Home Discount Scheme.
After the DWP made a change to the eligibility criteria, there is set to be an increase in the payments, reports Kent Live. The new £150, up from £140, will be paid directly from the Government via the DWP to energy suppliers.
Household bills will see the money deducted from their electricity bills. The additional support will be a huge relief from households who are struggling amid the cost of living crisis.
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From April 2023, the Government will end their £2,500 Energy Price Guarantee. The scheme was originally planned to end in 2024.
However, the £400 energy rebate will continue until March next year, which will total either £66 or £67 on electricity bills this winter. The changes to the Warm Home Discount mean that not everybody will receive the support automatically.
Energy Minister Graham Stuart MP said: “From this winter, the Government will reform the Warm Home Discount scheme in England and Wales. The Government is writing to households who are eligible to receive a rebate automatically, as well as households who need to call a helpline to determine if they are eligible.
“There will be an online eligibility checker to help people understand if they may be eligible, and the Government is sharing information on the new scheme with energy suppliers and charities.
“There is a separate Warm Home Discount scheme in Scotland. The Government will write to eligible households who are in receipt of Pension Credit Guarantee Credit, while other low-income households should check with their energy supplier how they may apply.”
More information about the Warm Home Discount Scheme is listed below.
What is the Warm Home Discount Scheme?
The Warm Home Discount was introduced by the UK Government in 2011 to help eligible customers in Scotland, England and Wales with their energy bills during the winter.
It’s there to provide support for those living on low incomes or people of State Pension age. As the Government and energy regulator Ofgem make decisions on which households will qualify, energy suppliers fund it.
These energy suppliers include British Gas, EDF, Scottish Power, SSE, E.on, Octopus, Shell and Utilita. The guidance on GOV.UK states that the scheme officially opens in November, which means the participating list of suppliers has not been updated yet.
However, most suppliers have a page on their website dedicated to offering advice and updates on when they will be making payments in the coming months.
How much is the scheme worth?
If you qualify, each household will receive £150 off their electricity bills this winter. The money is paid to energy providers as a one-off discount, and will be deducted from your bills.
It’s worth noting that payments may be later this year due to administrative changes by DWP around eligibility as the rules on who qualifies are different and depend on where you live.
You may be able to get the discount on your gas bill instead, but only if your supplier provides you with both gas and electricity and you’re eligible. You can contact your supplier to find out.
Credit customers will see the money added to their electricity account, and Pay As You Go/Prepayment customers will be sent a voucher to top their meter up.
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