MARTIN LEWIS has revealed millions more households could get a £150 energy bill discount.
The scheme gives those on low incomes or benefits a one-off £150 discount on their electricity bill.
The Government announced it is consulting on offering more support to UK consumers facing an “unpredictable international energy market”.
It comes as the average household energy bill will rise £111 per year, as part of watchdog Ofgem’s price cap.
The rise is because of an increase in gas prices across Europe, caused by a slump in the amount of gas that is held in storage across the continent.
The Department for Energy Security and Net Zero (DESNZ) said on Tuesday that one in five families in Britain would get financial help in the proposals.
Around 2.7million extra households, including nearly one million with children, would be eligible for the £150 Warm Home Discount next winter, it added.
This would bring the total number of recipient homes to an estimated 6.1million.
The Money Saving Expert explained how it works on his Martin Lewis Money Show Live on ITV this evening.
He said: “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. It’s a perverse system that rewards people for inefficiency – and the way it’s being put in practice has been absolutely terrible.
“The Government announced today they’re scrapping that criteria.
“So now everyone on means-tested benefits, the right means-tested benefits, will be eligible.
“It’s £150, 2.7million extra people. Hopefully this winter.”
Households are facing a 6.4% jump in their energy bills from April.
Ofgem said the increase to the price cap, which will raise the average bill for households in England, Scotland and Wales on a standard variable tariff from the current £1,738 a year to £1,849, followed a recent spike in wholesale prices.
The rise will equate to £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap.
This is 9.4% or £159 higher than this time last year but £531 or 22 per cent lower than at the height of the energy crisis at the start of 2023.
WHO IS ELIGIBLE FOR THE WARM HOME DISCOUNT?
The Warm Home Discount is a one-off £150 discount on your electricity bill.
You do not get the money paid into your account, but instead, your energy supplier takes the sum off your bill.
To qualify for the support you usually need to be on a low income or claim certain benefits.
If you’re eligible, your electricity supplier will apply the discount to your bill.
The money is not paid to you.
Applications for the scheme opened in October, however, you may not get the help until next March.
To qualify you’ll usually need to be actively claiming one of a number of means-tested benefits during the qualifying week – which was in August.
The qualifying means-tested benefits are:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Income Support
- the ‘Savings Credit’ part of Pension Credit
- Universal Credit
You could also qualify if your household income falls below a certain threshold and you get either:
- Child Tax Credit
- Working Tax Credit
However, if you later launch a successful claim for backdated benefits, you may still be able to qualify after this date and once it’s confirmed.
If you qualify for the WHD, you should receive a letter telling you. These are usually sent between October and January.
What energy bill help is available?
There's a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
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