Automatic £150 payment coming from October for those born before this date
Struggling households and low-income pensioners can breathe a sigh of relief as the Warm Home Discount scheme is set to provide essential aid with energy bills this winter 2024. The scheme offers a substantial £150 discount on gas and electricity, directly applied to energy bills, rather than as a separate payment, effectively easing the financial burden for many.
Energy suppliers have the discretion to apply these discounts anytime from October to March, meaning some customers will benefit earlier than others. The government will notify eligible individuals about the discount arrangements. Eligibility for the discount extends to state pensioners born before September 1958 who receive the Guarantee element of Pension Credit, as well as other low-income earners facing high energy costs.
This support arrives amidst debates over the government's choice to means-test Winter Fuel Payments, another form of financial assistance. Age UK has clarified the scheme's purpose: "The Warm Home Discount is a one-off payment of £150 to help with the cost of energy during the winter. It's designed to make things a bit easier if you're living on a low income or pension.", reports Birmingham Live.
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"Getting a Warm Home Discount doesn't affect your entitlement to a Winter Fuel Payment or Cold Weather Payment. If your electricity supplier is part of the Warm Home Discount scheme then you don't need to apply for it you'll get the payment automatically if you or your partner receive the Guarantee Credit part of Pension Credit, or another qualifying benefit, and have high energy costs.
"The money won't be paid to you directly it'll be added as credit to your electricity account. This usually happens between October and March (you might be able to get the discount applied to your gas bill if you're a dual-fuel customer i.e. you have a combined plan for gas and electricity with the same supplier).
"If you use a prepayment meter, you'll probably be given a top-up voucher. Some suppliers also offer indirect help to customers as part of the Warm Home Discount scheme. This might include advice on using less energy and help with reducing energy-related debts."