Some UK households start to receive larger rebate on energy bills

Some UK households are starting to receive a larger rebate on their energy bill under a government discount scheme.

The new Warm Home Discount was frozen at £140 for nearly a decade, but this winter it has increased to £150 and will be discounted automatically from bills.

Some pensioners and people on a low income receiving certain benefits are eligible for the discount.

The Warm Home Discount has been in place in England, Wales and Scotland to help people who might struggle to pay their heating bills during winter. However, there was criticism of the system which required many people to apply to their energy company for the rebate. Those suppliers often provided the rebate on a first come, first served basis meaning many would miss out.

Between now and March, £150 will automatically be taken off electricity bills by the vast majority of energy suppliers for anyone who is eligible. Those on prepayment meters may receive vouchers. Some people are receiving letters from their supplier to check eligibility, and a new helpline - 0800 731 0214 - is being launched for customers.

About 2.8 million people are eligible, including pensioners who receive the Guarantee Credit element of Pension Credit. Additionally, people on a low income, who receive means-tested benefits and are at risk of fuel poverty are also eligible.

The second of these groups has been reassessed and was part of a government consultation but charities have said that the results could leave thousands of people in serious difficulty.

The government said that an additional 750,000 people would now qualify because they receive housing benefits, and the new system prioritised households which were most likely to struggle to heat their homes.

National Energy Action (NEA), however, said that 500,000 households across England and Wales that were previously eligible will now be ruled out. That is because Disability Living Allowance and Personal Independence Payments are no longer qualifying benefits. People on low incomes, who do not receive means-tested benefits and who live in smaller, newer, houses, will also be among those losing out.

Adam Scorer, chief executive of NEA, said: “Removing a £150 rebate from these vulnerable groups is unwelcome and an unnecessary change to a vital programme - especially during an energy crisis.”

A statement from the department for business, energy and industrial strategy said: “We have introduced an unprecedented package of energy bills support for low-income households worth £1,200, as well as the £400 energy bill rebate and the Price Guarantee scheme, which will save the typical household around £700 this winter.

"On top of this, we are also prioritising households most in need this winter, with over three million homes across Great Britain receiving an additional £150 energy bill rebate through the Warm Home Discount, which will mean an extra 780,000 pensioners and low-income families will benefit this year compared to last."