Government urges households to make £150 energy bill check
Millions of households have been urged to check that they are in line to receive a £150 discount off their energy bills this winter as part of a government-backed scheme.
The Warm Home Discount provides a cut of £150 to domestic energy bills for qualifying recipients. It is a one-off discount automatically applied to energy bills between October and March.
Around six million households are set to receive the payment this winter, up by 2.3 million from last year, after the Department for Energy and Net Zero (DESNZ) announced an expansion to the scheme.
The change means that the bill payer must only receive an eligible means-tested benefit to qualify, and no longer need to prove that they live in a home with high energy costs.
In England and Wales, the qualifying benefits are universal credit, housing benefit, income-related ESA, and pension credit.
DESNZ has urged eligible households to check for confirmation letters from today (22 October). These will continue to be issued throughout the winter, with the last to be sent in January 2027, the department has said.
Minister for energy consumers, Polly Billington, said: “I know that many families will be struggling with their energy bills this winter.
“That is why I urge those who think they qualify for the Warm Home Discount to keep an eye out for a letter confirming their eligibility.
“Energy is an absolute essential, which is exactly why in October we cut VAT on all electricity bills and earlier this year we removed £150 of costs off bills, giving families breathing space this winter.”
These letters will either confirm that the household will receive the £150 discount, or advise them to give further information by phoning the helpline before the end of February 2027.
The earliest that Warm Home Discounts are applied is in October, but energy providers have until March 2027 to do this.
Ahead of the Autumn Budget, it has been reported that chancellor John Healey is considering expanding the discount to a total £250 or £300 for qualifying households, at a cost of around £1bn to the government.
The Treasury has declined to comment on the speculation. However, money expert Martin Lewis has said that it is “unthinkable” that the government won’t implement a measure like this given the forecast rise in energy bills.
Another rumoured change is the removal of standing charges on energy bills, which prime minister Andy Burnham indicated he was considering on Wednesday.
Ofgem’s energy price cap rose to £1,723 from the start of October, an increase of £60 a year. It will announce the rate covering January to March 2027 in November.
Experts have forecast that January’s increase could be drastic, with the ongoing US-Iran conflict hitting energy costs worldwide. Large provider EDF now forecasts a 24 per cent rise to £2,165 – up £442 on October’s rate.
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