Low-income state pensioners are set to receive a £150 boost to help with winter energy bills in January 2025 but who will get this sum?
The one-off payment comes as part of the Warm Home Discount scheme, which provides support between October and March.
This discount will be automatically applied to eligible households' energy bills during the winter period.
Pensioners receiving the Guarantee Credit element of Pension Credit are among those who qualify for the payment.
Other low-income households with high energy costs may also be eligible for the discount.
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
Some Universal Credit recipients are included in the scheme, which aims to support vulnerable households during the winter months.
Eligible residents should receive a letter explaining their qualifications for the discount. The discount will be applied directly to customers' energy bills rather than being paid in cash.
Direct debit customers will see the £150 added as credit to their energy accounts. Other customers will receive top-up vouchers for their energy supply.
Energy suppliers have discretion over when to apply the discount during the winter period. The payment comes as timely support, with energy bills expected to increase from January.
Age UK provided clarity on the scheme, stating: "The Warm Home Discount is a one-off payment of £150 to help with the cost of energy during the winter.
"It's designed to make things a bit easier if you're living on a low income or pension."
The charity explained that those with qualifying electricity suppliers don't need to apply.
"You'll get the payment automatically if you or your partner receive the Guarantee Credit portion of Pension Credit, or another qualifying benefit, and have high energy costs," Age UK added.
This support comes following the Government's decision to means-test the Winter Fuel Payment, costing hundreds of thousands of homes up to £300 in support.
In July, Chancellor Rachel Reeves confirmed that the benefit would be reserved for pensioners on low incomes, who are in receipt of Pension Credit.
LATEST DEVELOPMENTS:
Pensioner advocacy groups and poverty charities have hit back at the Chancellor over her decision-making and warned that fuel poverty is on the rise.
Carole Easton OBE, Chief Executive at the Centre for Ageing Better, said: "We know that the Winter Fuel Payment system was only ever a sticky plaster solution for our poor-quality housing crisis.
"It offered respite but not a solution to the fact that less than half of homes headed by someone aged 75 and over are energy efficient - rated within EPC bands A to C.
"But in removing the support so quickly, and in removing support from a significant number of low-income pensioners already in financial distress, the Government has created an avoidable crisis."
Find Out More...
The one-off payment comes as part of the Warm Home Discount scheme, which provides support between October and March.
This discount will be automatically applied to eligible households' energy bills during the winter period.
Pensioners receiving the Guarantee Credit element of Pension Credit are among those who qualify for the payment.
Other low-income households with high energy costs may also be eligible for the discount.
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
Some Universal Credit recipients are included in the scheme, which aims to support vulnerable households during the winter months.
Eligible residents should receive a letter explaining their qualifications for the discount. The discount will be applied directly to customers' energy bills rather than being paid in cash.
Direct debit customers will see the £150 added as credit to their energy accounts. Other customers will receive top-up vouchers for their energy supply.
Energy suppliers have discretion over when to apply the discount during the winter period. The payment comes as timely support, with energy bills expected to increase from January.
Age UK provided clarity on the scheme, stating: "The Warm Home Discount is a one-off payment of £150 to help with the cost of energy during the winter.
"It's designed to make things a bit easier if you're living on a low income or pension."
The charity explained that those with qualifying electricity suppliers don't need to apply.
"You'll get the payment automatically if you or your partner receive the Guarantee Credit portion of Pension Credit, or another qualifying benefit, and have high energy costs," Age UK added.
This support comes following the Government's decision to means-test the Winter Fuel Payment, costing hundreds of thousands of homes up to £300 in support.
In July, Chancellor Rachel Reeves confirmed that the benefit would be reserved for pensioners on low incomes, who are in receipt of Pension Credit.
LATEST DEVELOPMENTS:
- Britons urged to consider 'increasingly popular' option to 'free up some money' in retirement
- Pension crisis as older Britons waiting more than 100 days for Winter Fuel Payments
- Pension pots could be cut by £300,00 due to 'significant' life choice - how to save your retirement
Pensioner advocacy groups and poverty charities have hit back at the Chancellor over her decision-making and warned that fuel poverty is on the rise.
Carole Easton OBE, Chief Executive at the Centre for Ageing Better, said: "We know that the Winter Fuel Payment system was only ever a sticky plaster solution for our poor-quality housing crisis.
"It offered respite but not a solution to the fact that less than half of homes headed by someone aged 75 and over are energy efficient - rated within EPC bands A to C.
"But in removing the support so quickly, and in removing support from a significant number of low-income pensioners already in financial distress, the Government has created an avoidable crisis."
Find Out More...