Rishi Sunak draws up new plans to deal with the cost of living crisis. One measure could be to quadruple the amount of Warm Home Discount payments that struggling households will receive
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New proposals from Ofgem suggest energy price hikes could be smaller but more frequent.
This could put further pressure on UK households already grappling with rising council taxes, social security, Netflix subscriptions and a deepening cost of living crisis.
To combat the crisis, Chancellor Rishi Sunak is said to be preparing new plans that would see Warm Home Discount payments quadrupled and help many struggling Brits save hundreds of pounds on their bills.
Here’s everything you need to know about the warm home rebate, including how much it could increase and who’s entitled to the payment.
What is the warm home discount and how much does it increase?
The Warm Home Discount scheme is a one-off payment worth £150 paid to the poorest households to help with energy and electricity bills during the winter period.
The amount will not be paid out directly to you, but will be credited as a discount on your electricity bill. You can also benefit from your gas bill if your provider provides both gas and electricity (a dual-fuel tariff).
Now, following new leaked plans by Rishi Sunak to get a grip on the cost of living, the warm house rebate could be increased to £300, £500 or even £600 to provide further help with bills.
These are planned as one-off increases in payments and are said to be one of many ideas being discussed to overcome the cost-of-living crisis.
Who is eligible for the Warm Home Discount?
There are two ways to qualify for the Warm Home Discount Program:
One is when you get the guarantee credit element of the annuity loan. To qualify for this:
- Your partner/spouse’s name must appear on the invoice
- You or your partner/spouse must receive the guarantee credit element of the retirement savings
- You are with an energy supplier that offers the Warm Home Discount
The second way to qualify for the discount is if you have a low income and receive certain benefits. To qualify:
- You must either be with an energy supplier that offers the Warm Home Discount.
- They have low incomes, receive certain means-tested benefits, and experience or are at risk of energy poverty.
In England, fuel poverty is judged by whether you have a low income but high household expenses.
How you apply for the warm home discount depends on how you qualify for the discount. You may be able to request help directly from your electric utility if you are not receiving the guarantee credit element of the retirement savings.
Check with your supplier as early as possible to see if you are eligible and how to apply as there is a limit to the number of discounts suppliers can give.
https://www.mirror.co.uk/money/warm-home-discount-eligibility-how-26995657 Warm home rebate eligibility - how to get money off your energy bills