Huge change to major energy scheme set to give nearly 3million more households £150 bill discount
A HUGE change to a major energy scheme is set to give around three million more households a £150 discount on their bill.
The government is consulting on proposals that could see millions of more families gain access to the Warm Home Discount.
The Department for Energy Security and Net Zero (DESNZ) said one in five families would be eligible for the help next winter.
Around 2.19million households across England and Wales claimed the support in the 2023/24 year, up from 1.55million homes the year before.
The fresh proposals would bring the total number of recipient homes to an estimated 6.1million.
It comes as the average household energy bill will rise £111 per year, as part of watchdog Ofgem's price cap.
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This is £159 per year higher than the price cap set for the same period last year and marks the third quarter in a row that costs have increased.
The rise is because of an increase in gas prices across Europe, caused by a slump in the amount of gas that is held in storage across the continent.
Energy Secretary Ed Miliband said expanding the Warm Home Discount can help "protect millions of families from rising energy bills, offering support to consumers across the country".
Alongside a wider roll out the Warm Home Discount, the government is also looking to help households tackle debt.
The government said they are working with the regulator to speed-up proposals on a possible debt relief scheme.
Ofgem has been consulting on whether to introduce a debt relief scheme for people who have got behind with their energy bills during the energy crisis and may struggle to repay.
It aims to publish an update on these findings come spring.
Richard Lane, chief client officer at StepChange said he strongly "welcomed" Ofgem's plans to work towards a debt relief scheme which will tackle historic debt.
The debt charity said its new clients are around £2,500 in the red due with their energy bills.
BILLS TO RISE THIS APRIL
Energy is just one utility bill that is set to rise this April.
The average annual water and wastewater bill will rise by £123, taking it from £480 to £603 - a leap of around £10 per month.
Broadband prices for many UK customers are also set to rise by 6.4% due to mid-contract price rises.
Council Tax bills could also rise by 5% this April and the TV license charge will hit £174.50.
Single benefits claimants will also see Universal Credit increase by £1.50 a week come April.
The basic rate for couples will go up by around £2.50 a week from the current level of £145.13 a week.
It rises each year in April in line with the rate of CPI inflation the previous September, known as uprating.
September's rate of inflation was announced late this year as 1.7%.
Talk of government ramping up financial support for struggling households comes after it decided to scrap winter fuel payments for those who do not receive pension credit or other benefits.
Meanwhile, the Household Support Fund will end on March 31.
The grants, which are handed out by local councils, gives hard-pressed families cash and vouchers to help with food and electricity costs.
WHO IS ELIGIBLE FOR THE WARM HOME DISCOUNT?
The Warm Home Discount is a one-off £150 discount on your electricity bill.
You do not get the money paid into your account, but instead, your energy supplier takes the sum off your bill.
To qualify for the support you usually need to be on a low income or claim certain benefits.
If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.
Applications for the scheme opened in October, however, you may not get the help until next March.
To qualify you'll usually need to be actively claiming one of a number of means-tested benefits during the qualifying week - which was in August.
The qualifying means-tested 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
- Working Tax Credit
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However, if you later launch a successful claim for backdated benefits, you may still be able to qualify after this date and once it's confirmed.
If you qualify for the WHD, you should receive a letter telling you. These are usually sent between October and January.
4 ways to keep your energy bills low
Laura Court-Jones, Small Business Editor at Bionic shared her tips.
1. Turn your heating down by one degree
You probably won't even notice this tiny temperature difference, but what you will notice is a saving on your energy bills as a result. Just taking your thermostat down a notch is a quick way to start saving fast. This one small action only takes seconds to carry out and could potentially slash your heating bills by £171.70.
2. Switch appliances and lights off
It sounds simple, but fully turning off appliances and lights that are not in use can reduce your energy bills, especially in winter. Turning off lights and appliances when they are not in use, can save you up to £20 a year on your energy bills
3. Install a smart meter
Smart meters are a great way to keep control over your energy use, largely because they allow you to see where and when your gas and electricity is being used.
4. Consider switching energy supplier
No matter how happy you are with your current energy supplier, they may not be providing you with the best deals, especially if you've let a fixed-rate contract expire without arranging a new one. If you haven't browsed any alternative tariffs lately, then you may not be aware that there are better options out there.