A HUGE energy firm with five million customers is set to pay thousands of customers a £150 automatic discount on their bills.
Ovo Energy is giving eligible customers extra cash through the Warm Home Discount to help lower bills this winter.
The eligibility requirements for the Warm Home Discount are the same as last year.
There are two Warm Home Discount schemes - one for England and Wales, and one for Scotland.
Those living in England and Wales do not need to apply for the scheme, but those living in Scotland do.
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Between now and December, the government will issue letters to households that qualify for the scheme.
Once your eligibility is confirmed, you should expect to receive the payment by the end of December 2023 or within six weeks of being sent the letter.
To qualify, you need to claim either the guaranteed credit element of Pension Credit or a different qualifying means-tested benefit, including:
- Income support
- Income based jobseeker's allowance
- Income related employment and support allowance
- Housing benefit
- Universal Credit
- Child tax credit
- Working tax credits
- Pension Credit savings credit
If you weren't claiming any of these benefits on August 13, 2023, you won't be eligible for the payment.
Where someone claims a qualifying benefit, the government will assess their energy costs based on the type, age and size of property.
You may not be considered eligible for the Warm Home Discount if you live in a more energy-efficient property for instance, even if you receive a qualifying benefit.
But this rule doesn't apply to recipients of the guarantee credit portion of Pension Credit.
Around 850,000 pensioners are eligible for Pension Credit but not claiming it.
As well as missing out on potentially hundreds or even thousands of pounds a year from the benefit itself, they won't get the £150 Warm Home Discount payment.
However even if you weren't receiving Pension Credit on the qualifying date on August 13, there's a trick you can follow to later ensure that you get the extra cash.
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This is because your eligibility for certain benefits can be backdated.
For example, successful Pension Credit claims can be backdated by three months.
So if you make a claim now you could be in the qualifying period for the Warm Home Discount - but you'll need to do so by Friday, October 13.
The government will then issue a letter to your household to tell you if you later qualify for the scheme.
Do I need to apply for the discount?
People living in England and Wales don't need to apply for the Warm Home Discount as of this year.
You get the payment automatically if your electricity supplier is part of the scheme and you qualify.
Households will receive a letter in the post over the coming weeks confirming their eligibility.
Energy regulator Ofgem says some people may be asked to contact a Government helpline to confirm their eligibility.
If you have not received a letter by the middle of January 2024, but you think you should be eligible for a rebate, contact the WHD helpline on 0800 030 9322.
Visit the government website for more information.
How do I secure the discount in Scotland?
The Scottish Government has not changed their Warm Home Discount scheme to bring it in line with England and Wales' application-free scheme.
Households in Scotland will have to follow the rules set out in the legacy scheme.
This means there is still a "core group" that'll receive an automatic payment and a "broader group" who'll have to apply for the scheme with their energy provider.
How will I receive the discount from Ovo Energy?
If you pay by direct debit or on receipt of your bill the Warm Home Discount will be added to your electricity account as a credit.
If you have a traditional prepayment meter, Ovo Energy will send you a voucher you can use to top up your meter at your local PayPoint kiosk.
If you've got a smart prepayment meter, Ovo will send the discount directly to your meter as a credit.
If you were supplied by Ovo Energy on August 13, 2023 and then switched to a new supplier, Ovo will send you a cheque in the post.