Martin Lewis has revealed that millions more households are set to receive a £150 energy bill discount this winter. The Warm Home Discount typically offers £150 off electricity bills for eligible households between October and March, according to the Sun. To qualify in England and Wales, recipients must either claim the Guarantee Credit element of Pension Credit or receive means-tested benefits with high energy costs.
In a new update, the Department for Energy Security and Net Zero (DESNZ) announced that it is consulting on removing the “high-cost-to-heat” element from the Warm Home Discount criteria. This change will mean that any household in England and Wales claiming the right means-tested benefits will qualify for the discount, regardless of their energy costs, reported the Mirror.
In Scotland, eligibility for the Warm Home Discount remains tied to receiving the Guarantee Credit element of Pension Credit or other means-tested benefits. Some electricity providers in Scotland may have additional criteria for qualification, and the DESNZ is looking to increase funding to ensure more households can benefit from the discount.
The anticipated changes are expected to benefit an additional 2.7 million households, raising the total number of recipients to 6.1 million. Martin Lewis explained the changes during his Martin Lewis Money Show Live broadcast on ITV, saying: “The Warm Home Discount is £150 given to homes on low incomes… If you’re on the guaranteed element of Pension Credit, you get it. You also, if you’re on means-tested benefits, like Universal Credit that helps working and non-working people on low incomes, you get it, as long as your home has a high energy rating. In other words, it’s inefficient.”
He further criticized the previous system, calling it “a perverse system that rewards people for inefficiency,” but welcomed the government’s decision to remove the high energy costs criterion. “Now everyone on means-tested benefits, the right means-tested benefits, will be eligible,” Lewis added, hopeful that the changes will take effect this winter.
This announcement follows news that energy bills are set to rise again in April, with the price cap increasing by 6.4%. The typical dual-fuel household will see their annual bill rise by £111, from £1,738 to £1,849. Ofgem CEO Jonathan Brearley highlighted the growing issue of energy debts, stating that without intervention, debts would continue to rise, putting pressure on families. He praised the government’s plans to expand the Warm Home Discount, which will offer financial relief to millions more households.
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