Millions of households in the UK are set to receive notifications regarding the Warm Home Discount scheme. This program offers a £150 reduction on electricity bills, directly credited to the energy provider. Eligible recipients, who were receiving specific benefits as of August 24, will receive notification letters starting October 20.

Residents in England and Wales will automatically receive the Warm Home Discount, while those in Scotland must have the Guarantee Credit element of Pension Credit to qualify. For other benefits, individuals need to apply directly through their energy supplier, as the scheme is not available in Northern Ireland.

The Department for Energy Security and Net Zero (DESNZ) has eliminated the high energy use requirement for the Warm Home Discount in England and Wales. This change is expected to increase the number of households receiving the discount by an estimated 2.7 million, totaling around 6.1 million.

Energy bills are projected to rise this winter, with Ofgem’s price cap increasing from £1,720 to £1,755 for a typical dual fuel household paying by direct debit. The new cap, effective from October 1 to December 31, applies to standard variable rate (SVR) tariffs. Despite the cap, energy charges are based on actual usage of gas and electricity.

The Ofgem price cap sets limits on gas and electricity unit charges, as well as standing charges for connection to the energy network. The cap is calculated based on average household consumption of 2,700 kWh of electricity and 11,500 kWh of gas annually.