As we head into winter and start to think about keeping our homes warm, many will struggle to meet the extra cost, especially as energy tariffs continue to soar. However, support is available from the UK government under three different schemes which can help to subsidise the cost of gas and electricity during the colder months.
It is important to understand if you are eligible, and the amount you could be entitled to, if you decide you want to apply for a grant to help pay for your energy bills. In this article, we list the three different government-backed grants available across the UK, their qualifying criteria, and how much money each one could save you over the course of a year.
Warm Home Discount
What is the Warm Home Discount?
The Warm Home Discount scheme could reduce your energy bill between October and March with the help of a one-off discount of £150. You do not receive the discount personally, as it is provided on behalf of the government to your supplier, enabling them to apply the discount to your bill. It will not affect your Cold Weather Payment or Winter Fuel Payment.
Who is eligible for the Warm Home Discount?
You may qualify for the Warm Home Discount if you are either:
- Receiving the Guarantee Credit element of Pension Credit or;
- On a low income or in receipt of certain means-tested benefits.
How to apply for the Warm Home Discount
If you are eligible for the Warm Home Discount you should automatically have the discount applied to your energy bills if you live in England and Wales. If you live in Scotland and are on a low income you may have to apply for the scheme as there are limited spaces available. You can find out if you are eligible for the Warm Home Discount here.
For more information on the Warm Home Discount, eligibility and how to apply, read our article, 'Warm Home Discount Scheme - how to get £150 off your energy bill'.
Winter Fuel Payment
What is the Winter Fuel Payment?
The Winter Fuel Payment is an annual one-off payment of between £100-£300 made by the government to assist with the extra fuel costs over the winter period. Payment is usually made automatically in November or December, and the payment will not be taxed nor will it impact any other benefits you receive. Due to the cost of living crisis the Winter Fuel Payment includes a Pensioner Cost of Living Payment (which is between £150 - £300) for winter 2023/24 which means you could get between £250 - £600 in total.
Who is eligible for the Winter Fuel Payment?
You may qualify for the Winter Fuel Payment if you meet both of the following:
- You were born before 25th September 1957.
- You have lived in the UK for at least one day during the 'qualifying week' of 18th - 24th September 2023.
How much Winter Fuel Payment you could receive
The amount of Winter Fuel Payment you will receive will depend on your circumstances. As a result of the rising energy bills, the government announced a Cost of Living support package to help cover the cost of energy bills throughout winter 2023/24. Therefore, if you are eligible for the Pensioner Cost of Living Payment, you will receive an additional amount of up to £300 on top of the Winter Fuel Payment. How much you can expect to receive this winter (2023/24) is shown in the following table:
| Your circumstances | Born between 25/09/43 - 24/09/57 | Born before 25/09/43 |
| You qualify and live alone (or none of the people you live with qualify) | £500 | £600 |
| You qualify and live with someone who also qualifies (and you were both born between 25/09/43 - 24/09/57) | £250 | N/A |
| You qualify and live with someone who also qualifies (but you were born between 25/09/43 - 24/09/57 and the person you live with was born before 25/09/43) | £250 | N/A |
| You qualify and live with someone who also qualifies (but you were born before 25/09/43 and the person you live with was born between 25/09/43 - 24/09/57) | N/A | £350 |
| You qualify and live with someone who also qualifies (and you were both born before 25/09/43) | N/A | £300 |
| You qualify and live with a partner who qualifies, and either of you gets certain benefits^ | £500 (only one person will get the payment) | £600 (only one person will get the payment) |
| You qualify and live with someone (not your partner) who qualifies, and either of you gets certain benefits^ | £500 (you both get a payment) | £600 (you both get a payment) |
| You qualify, live in a care home and do not get certain benefits^ | £250 | £300 |
(Source gov.uk)
^Pension Credit, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), Income Support
How to apply for the Winter Fuel Payment
You usually do not need to apply for the Winter Fuel Payment and should receive it automatically if you are eligible.
If you have not received the Winter Fuel Payment before, then you will need to make an application if any of the following apply:
- You are not in receipt of a State Pension or any benefits
- You are only in receipt of Universal Credit, Housing Benefit, Council Tax Reduction, Child Benefit or Adult Disability Payment from the Scottish Government.
- You have deferred your State Pension.
If you were not a resident in the UK for the qualifying week, you might still qualify for the Winter Fuel Payment if you meet all of the following criteria:
- You were born before 25th September 1957
- You moved to an eligible country prior to 1st January 2021
- You have a 'genuine' link to the UK, such as having lived or worked in the UK or having family in the UK
Cold Weather Payment
The Cold Weather Payment is a government scheme which pays £25 for each 7 consecutive days of very cold weather between 1st November and 31st March. The payment is triggered if the average temperature in your area is either recorded as, or forecast to be, 0°C or below over a 7-day period.
Who is eligible for the Cold Weather Payment?
You may be eligible for a Cold Weather Payment if you are eligible for any of the following:
- Pension credit
- Support for Mortgage Interest (SMI)
- Income Support and Income-Based Jobseeker's Allowance
- Income-Related Employment and Support Allowance (ESA)
- Universal Credit
If you live in Scotland and are eligible for the Cold Weather Payment this is now being replaced with the Winter Heating Payment. This is an annual £50 payment that will be paid automatically to those who qualify for the payment. Unlike the Cold Weather Payment, the Winter Heating Payment is paid regardless of weather conditions or temperatures.
Further eligibility details
There are some additional caveats that you should be aware of.
If you are receiving Income Support and Income-based Jobseeker's Allowance, then at least one of the following must apply:
- You have a disability or pensioner premium
- You have a child who is disabled
- You receive Child Tax Credit that includes a disability or severe disability element
- You have a child under 5 living with you
If you are receiving Income-Related Employment and Support Allowance, then at least one of the following must apply:
- You have a severe or enhanced disability premium
- You have a pensioner premium
- You have a child who is disabled
- You receive Child Tax Credit that includes a disability or severe disability element
- You have a child under 5 living with you
If you are receiving Universal Credit and you are not employed or self-employed, then at least one of the following must apply:
- You have a health condition or disability and have limited capability for work (with or without work-related activity)
- You have a child under 5 living with you
You will also be eligible for a Cold Weather Payment if your Universal Credit claim includes a disabled child amount, whether you are currently employed or not.
What to do if you are struggling to pay your energy bill
If you're struggling to pay your energy bills we share some steps you can take to try and stay on top of your debt. For more tips read our article, 'What to do if you’re struggling to pay your energy bills'.
1. Contact your supplier
As soon as you feel you are struggling to pay your energy bills, you should contact your supplier to discuss ways to pay what you owe them in a timely and achievable manner. Your supplier is obliged to help to find a solution. You should only agree to a solution that works for you.
2. Agree a payment plan with your supplier
Your supplier must help you to find a solution to paying off your current debt and factor in the cost of future estimated use. You should make your energy bill debts a priority over other debts, and if you cannot reach an agreement, then your supplier may insist on fitting a pre-payment meter in your home.
3. What to do if you cannot agree on a payment plan
It is very unusual not to be able to agree on a payment plan, but if this is the case, ask your energy supplier if they can provide any more help. For example, fitting a pre-payment meter that many find a more convenient way of paying for their energy, or finding out if you may be able to get a grant from a charitable trust to help to pay your energy bill. You can also contact Citizens Advice who will provide help in advising you on how to deal with debt.
How to reduce your energy bill
Below we list some tips on how to reduce your energy bill but for more money-saving tips read our article, 'How to save money on your energy bills'.
1. Control your thermostat
You could cut your heating bills by turning down your thermostat by just 1°C. You can do this by fitting radiator thermostats that allow you to control the temperature in each room separately, so you can reduce the cost of heating rooms that may not be being used, which could cut hundreds off your bill by the end of the year.
2. Get your boiler serviced
An inefficient boiler not only results in poor heating within your home but will also increase your energy bills. A regular boiler service saves you money but also gives you peace of mind that you're less likely to be left without any gas or electricity during the cold winter months.
3. Insulate your home
Consider investing in loft and cavity wall insulation, as this will reduce the amount of heating you lose through your roof and walls, and therefore reduce your energy bills. The Energy Saving Trust has a helpful list of suggestions on how to reduce heat loss in your property.
4. Install energy-efficient appliances
Switching to energy-saving lightbulbs or using energy-efficient appliances could help to save money on your energy bill. In addition, ensure your dishwasher and washing machine is full before turning it on and try to use the eco settings where possible.
