WITH the average family now spending £1,690 a year on energy bills, it’s not surprising that many of us are feeling the pinch.
But over two million households are missing out on a benefit that could shave a tidy £150 from their annual energy bill.
Data from research firm Policy in Practice shows there is £314million worth of Warm Home Discounts going unclaimed.
The discount is a measure designed to help low-income families and retirees to manage their bills during the winter months.
How does the scheme work?
The Warm Home Discount Scheme is a one-off £150 discount off your electricity bill.
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If you’re eligible, your electricity supplier will apply the discount directly to your bill - you don’t get paid the money into your account.
Lots of people get the discount automatically, but failure to claim other benefits, such as the ‘guarantee element’ of Pension Credit or Universal Credit means you won't get the discount.
You might be able to get money off your gas bill instead if your supplier provides you with both gas and electricity.
Who is eligible for the warm home discount?
There are two main ways to qualify for the warm home discount.
The first is if you’re getting the guarantee element of Pension Credit.
Pension Credit tops up your weekly income to £218.15 if you’re single and £332.95 if you have a partner.
If you are claiming this, your energy supplier is part of the scheme and your name is on the electricity bill, you should get the discount automatically.
To qualify for the guarantee element:
- you and your partner must have both reached State Pension age
- one of you must get Housing Benefit for people over State Pension age
Policy in Practice estimates that there are 850,000 people who are not claiming Pension Credit despite being eligible.
It’s worth up to £2,700 a year in extra income as well as the warm home discount, so it’s well worth applying.
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The other way to get the warm home discount is if you’re on a low income and in receipt of certain benefits.
You might be eligible if:
- your energy supplier is part of the scheme
- you or your partner get certain means-tested benefits or tax credits
- your property has a high energy cost score based on its characteristics
- your name or your partner’s is on the electricity bill
The qualifying 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 or Working Tax Credit.
Many of these benefits are also under-claimed, so if you think you might be eligible it’s important to apply.
You’ll get much-needed extra money each month on top of the help towards your bills.
Other energy schemes to consider
You should also check if you’re missing out on other key energy schemes. The two main ones to consider are Cold Weather Payments and the Winter Fuel Payment.
The Winter Fuel Payment is worth between £100 and £300, and is available for households that include someone born on or before 22 September 1958 (for the 2024-25 year).
The eligible age range changes each year, so it will be different for 2025-26.
You should get the payment automatically if you’re eligible, but you need to make sure you’re claiming the right benefits, which include the State Pension and Pension Credit.
You do not need to claim if you are in the right age range and get any of the following:
- State Pension
- Pension Credit
- Attendance Allowance
- Personal Independence Payment (PIP)
- Carers Allowance
- Disability Living Allowance (DLA)
- Income Support
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- awards from the War Pensions Scheme
- Industrial Injuries Disablement Benefit
- Incapacity Benefit
- Industrial Death Benefit
Cold Weather Payments help with the cost of heating when the temperature drops and are available for families on low incomes.
You’ll get a payment if the average temperature in your area is recorded as, or forecast to be, zero degrees celsius or lower over seven consecutive days.
You’ll get £25 for each period that qualifies between November 1 2024 and March 31 2025.
If you’re eligible, you should get these payments automatically, but it relies on you applying for all the other benefits you qualify for.
You may need to tell Jobcentre Plus if you have a baby or if a child under five comes to live with you.
The relevant benefits are:
- Pension Credit
- Income Support
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Universal Credit
- Support for Mortgage Interest
But you typically need to also either have a child under five living with you, or receive certain age- or disability-related benefits such as:
- A disability or pensioner premium
- A child who is disabled
- Child Tax Credit that includes a disability or severe disability element
- A severe or enhanced disability premium
- A health condition or disability and have limited capability for work (with or without work-related activity)
You can read the full eligibility criteria here.
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