Increase Warm Home Discount ‘to £200 this winter’

With energy prices for millions of households rising to the highest level for three years in a few weeks’ time, Midlands energy expert Ron Fox has called on the government to raise the Warm Home Discount to £200 for this winter.

Regulator Ofgem said the price cap would increase by 4 per cent on October 1 because of higher wholesale gas prices due to the Israel-America war on Iran.

It means an average household using a typical amount of gas and electricity a year will pay £60 more to £1,723. However, the final bill depends on how much energy people use. Also, more than a third of homes, 11 million, are on fixed tariffs, so their prices will not change.

“The increase is coming just as the colder weather arrives, so it is crucial to help older people stay warm,” said Ron, of Noreus Ltd on the University of Keele Science Innovation Park.

“That is why I am supporting an Age UK appeal for the Warm Home Discount scheme to be extended to more households on low incomes.”

Now around 6 million households in Great Britain are receiving specific means-tested benefits from the scheme, which is credited directly to eligible electricity or dual-fuel bills between October 2026 and March 31, 2027. It is not paid in cash.

Ron said he also supported the charity’s appeal for the Government to top up the Crisis and Resilience Fund so local councils can respond quickly to households who find themselves in financial difficulty.

The Government said its cut to VAT on electricity bills will save households on average £45 a year depending on how much they use. Also, they said the Warm Home Discount would take £150 off bills for six million households this winter.

But suppliers say energy debt has rocketed and, with high bills likely to persist, have called for more support for those struggling to pay.

Experts say people are still paying hundreds of pounds a year more on average than before Russia’s 2022 invasion of Ukraine, which started the energy crisis.

The debt charity, StepChange, said an increasing number of people were seeking help with energy debt, averaging at £2,600 on top of other financial commitments. The charity has joined calls for the government to introduce a social tariff.

So what support is there? This is Ron’s advice.

Firstly, your energy provider is legally required to help you agree on an affordable payment plan, and many offer hardship or charitable funds. You can apply for grants from the British Gas Energy Trust regardless of who supplies your energy.

Secondly, your local authority administers the Household Support Fund (often called the Crisis and Resilience Fund), which helps vulnerable residents cover heating and energy essentials.

Thirdly, if you cannot afford to top up your pre-payment meter, contact your supplier immediately to request temporary emergency credit or a fuel voucher (a digital code used to add credit).

Fourthly, speak to free, confidential debt and energy charities such as Citizens Advice to ensure you are receiving all the benefits you are entitled to.

Fifthly, if you are on standard variable tariffs, you should look into locking into competitive fixed energy deals or compare options since the Energy Price Cap remains volatile.

“It will be interesting to see whether the government provides further help with energy bills in its next budget on Wednesday, October 28,” concluded Ron.

This article raises some interesting questions, he added. Are you having to make cutbacks to pay your energy bills? Should the Warm Home Discount scheme be extended? What should the Government be doing to reduce peoples’ rising gas and electricity costs? Send your views to Ron Fox at [email protected]

Ron added: “If you want any energy advice on cutting your energy bills, call me on 0845 474 6641 or contact me here”

Caption: Going up – the price cap by 4 per cent on October 1. Picture: John Butterworth