Over 2.7 million additional households will receive a £150 discount from their energy bills this winter, the government has said.
Ofgem’s energy price cap increased by 2 per cent from October 1 for a typical household in England, Scotland and Wales, just as homes get ready for colder temperatures.
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
The average household paying by direct debit for gas and electricity will now pay £1,755 per year, up from £1,720. However, some households will be eligible for a discount.
Households eligible for the Warm Home Discount scheme will be informed by letters, with the first letters being sent out this week.
So how does the scheme work?
Who is eligible for the discount?
Over six million households across England, Scotland and Wales will receive some form of help.
To qualify for the Warm Home Discount this winter, households must receive one of the following means-tested benefits:
Those eligible for the discount must also be named on the electricity bill (either their name or their partners’ or legal representative).
The same criteria applies to people living in Scotland, but they must also meet the criteria established by your specific energy supplier.
How do you know if you are eligible?
Letters are being sent to households in England and Wales from Tuesday.
Approximately 250,000 eligible households will be informed this week, and every eligible household will receive the letter before January.
If you don’t get a letter but you think you are eligible, you can contact the Warm Home Discount scheme by February 28, 2026.
How does the discount work?
Most eligible households will have £150 automatically deducted from their energy bill without them having to do anything.
Some people will need to supply extra information to get the discount. They will be advised to call a helpline with an electricity bill or statement in hand to confirm the payer’s name and account number.
Are homes with pre-pay and pay-as-you-go meters eligible?
Yes. You can still qualify for the discount if you're on a pre-pay or pay-as-you-go electricity meter.
Your electricity supplier can inform you how to get the discount if you’re eligible.
What have the government said about it?
Keir Starmer has said the cash injection "will help people manage their bills while [the government fixes] the rusting energy system we inherited".
“Because it is only through our clean energy mission that we will get bills down for everyone in the long run, creating jobs and economic growth along the way.”
Energy Secretary Ed Miliband said he is "determined to tackle energy affordability for families, and this winter more people will be helped as a result".
He added: “I would urge anyone who needs to provide extra information to follow the straightforward steps and make sure they get money off their bills this winter.”
