Millions of households in the UK are set to benefit from a £150 discount on their electricity bills this winter as part of the annual Warm Home Discount scheme, which is being offered by multiple energy suppliers.

The Warm Home Discount provides a direct reduction of £150 on electricity bills, with the payment made to the energy supplier rather than as cash to the individual’s bank account.

To qualify for the Warm Home Discount, individuals must be receiving specific benefits on the qualifying date, which for this year is August 24. Residents in England and Wales will automatically receive the discount, while in Scotland, automatic eligibility is based on receiving the Guarantee Credit element of Pension Credit. For other eligible benefits, individuals must apply directly to their energy supplier. It is important to note that the Warm Home Discount scheme does not apply in Northern Ireland.

As energy bills are expected to rise slightly in January, with the Ofgem price cap increasing to £1,758 for a typical dual fuel household paying by direct debit, the Warm Home Discount will provide significant relief for eligible households.

The Ofgem price cap, effective until March 31, applies to standard variable rate tariffs and helps regulate the costs of gas and electricity units as well as standing charges. While the price cap sets a limit on charges, the actual bill depends on the energy consumption of each household.

Overall, the Warm Home Discount scheme aims to alleviate the financial burden of energy bills during the winter months for eligible households across the UK.