Last updated: February 2023
2022 in the UK has been a year of rapid change: a new monarch, the shortest-serving prime minister, a record-breaking summer heatwave, and a cost-of-living crisis that has left more families than ever in the cold this winter.
Until now, the UK has depended on cheap energy imported from Russia, and while the government can’t control global gas and electricity prices, it does have a responsibility to support households’ rising bills. That’s why there’s been an uptick in newly created or continued schemes, grants and guarantees – all designed to lend a hand to families and those most vulnerable around the country.
However, there seems to be an inundation of new information, so we’re not surprised if you’ve been left scratching your head over which of these schemes can actually help you – and how. So, to make things easier, we’ve created a simple rundown of the four most significant schemes aimed to help you afford your energy bills this winter.
Energy Bills Support Scheme
What is it?
The Energy Bills Support Scheme provides a £400 non-repayable discount to eligible households to help with their energy bills. This will be administered by your energy supplier and is an automatic process – you don’t need to apply or do anything yourself unless you use a traditional repayment meter.
How long does it cover?
1 October 2022 – 31 March 2023
Who is elegible?
All households with a domestic electricity connection in England, Scotland, Wales and Northern Ireland. The government announced plans to extend funding for households that don’t have a domestic electricity meter or those that don’t have a direct relationship with an electricity supplier (such as tenants who pay their bills as part of an all-inclusive package).
How does it work?
- The discount will be automatically applied to your electricity bill unless you have a traditional repayment meter. In this case you will either be given redeemable vouchers at the beginning of each month or an automatic credit when you go to top up.
- A monthly discount of £66 will be applied to bills in October and November, and £67 from December to March.
- Even if you pay your bills quarterly or with a payment card, the discount will work on a monthly basis.
- If your living situation or circumstances change, you’ll still benefit from the discount. So, if you’re a student moving into rented accommodation or change energy suppliers, you will still be eligible for the Energy Bills Support Scheme.
The Energy Price Guarantee
What is it?
The Energy Price Guarantee limits the amount energy suppliers can charge households for energy usage, regardless of global prices. The guarantee means that UK households won’t pay more than £2,500 a year on their energy bills, and £1,950 in Northern Ireland. According to Gov.uk, the guarantee should save typical UK households approximately £900.
How long does it cover?
October 2022 – March 2023
Who is elegible?
All households with a domestic electricity connection in England, Scotland, Wales and Northern Ireland.
How does it work?
- Like the Energy Bills Support Scheme, the Energy Price Guarantee is an automatic process – you don’t need to apply.
- Suppliers are reimbursed for the savings they give out, so you can be assured your energy bills won’t dramatically change over the next two years.
- As it’s a price cap, not a discount, your energy bills will still reflect your home’s energy usage and will be higher or lower depending on your region and other circumstances.
- Certain variable tariffs, like 100% green energy tariffs, are exempt from the price cap because of the amount of money they put into renewables. This means your property’s heating would be totally carbon neutral from start to finish, but rates would be susceptible to fluctuation depending on global markets.
Warm Home Discount Scheme
What is it?
The Warm Home Discount Scheme is a one-time discount of £150 on your electricity bill. This scheme is reserved for certain pensioners and low-income households, so eligibility is a lot stricter than the previous two schemes.
How long does it cover?
October 2022 – March 2023
Who is elegible?
Pensioners and low-income households in England, Scotland and Wales whose energy suppliers are part of the scheme. If you live in Scotland, you must meet the criteria set out by your energy supplier, so contact them directly to see if you’re eligible.
If you're a pensioner
You or your partner receive the Guarantee Credit element of Pension Credit
If you're on a low income
You or your partner receive certain means-tested benefits or tax credits
You’re at risk of fuel poverty
Your property has a high energy cost
How does it work?
- Eligible households will receive a letter by January 2023 and the discount will be automatically applied to your bill by the end of March.
- If your supplier provides you with both gas and electricity, you may be able to get the discount on your gas bill instead.
- You can still get the discount if you use a repayment meter or live in a park home. For those with a repayment meter, it’ll work similarly to the Energy Bills Support Scheme – you’ll receive vouchers from your supplier which can be redeemed at your local top up point.
- If you think you’re eligible and haven’t received your letter by mid-January, there’s a helpline available for you to contact
Winter Fuel Payment
What is it?
The Winter Fuel Payment is a one-time payment between £250 and £600 to go towards a household’s heating bills. This scheme includes those over 66 years of age and is an automatic process. Instead of being applied as a discount on your energy bills, the money will be paid into your bank account directly.
How long does it cover?
October 2022 – March 2023
Who is elegible?
Those born before 26 September 1956. You will get a letter telling you if you’re eligible and how much money you’ll get. The amount depends on a variety of factors, including your age and whether you live alone.
How does it work?
- You will be paid directly into your bank account in November or December.
- This payment should happen automatically – if you think you’re eligible and want to make a claim, you must contact the helpline by 31 March 2023.
- The full amount also includes a Pensioner Cost of Living Payment, which is anything from £150-£300.
- You can receive this payment alongside the Warm Home Discount, as well as several others
What other support is there?
While we’ve covered the main schemes on offer, we’ve merely scratched the surface on all the energy bill support schemes available. The government recently launched a Help for Households campaign which covers a wide range of community support services – from childcare to income assistance – so, be sure to check it out for a full rundown.
If you have electric heating in your home or have been considering making the switch, don’t hesitate to give our friendly advisors a call on 0330 300 4444 or 01 584 1000 if you’re in Ireland. They’ll answer any questions you have about our products or electric heating in general. While the cost of electricity is high right now, our electric heaters contain a wealth of features to keep energy usage at a minimum and keep running costs low, so view our full range of radiators, heaters, towel rails and patio heaters today.
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Key learnings
- With the rising costs of living and soaring gas prices, the UK government are running a range of schemes to support households this winter (Oct 2022-March 2023).
- Energy Bills Support Scheme – A £400 non-repayable discount on energy bills for most households.
- Energy Price Guarantee – Limits how much suppliers can charge customers per kWh regardless of global gas prices.
- Warm Home Discount Scheme – Pensioners who receive the Guarantee Credit element of Pension Credit and certain low-income households could get £150 off their electricity bill.
- Winter Fuel Payment – Those born before 26 September 1956 could receive between £250-£600 to go towards their heating bills.
- Check out Gov UK’s Help for Households campaign for a full list of what’s on offer.