• More than 250,000 families to receive confirmation of £150 discount off their energy bill due to extra help from government 
• Vast majority to receive discount automatically but some will need to provide extra details
• Prime Minister expands Warm Home Discount to an extra 2.7 million households this winter

More than a quarter of a million families will receive confirmation this week of their £150 discount on energy bills this winter, as part of the government’s drive to help families tackle energy affordability and put money into people’s pockets. 

The Prime Minister took the decision last year to expand the Warm Home Discount to a further 2.7 million families, meaning 6 million households now receive the help. 

Covering households across England and Wales, letters will start arriving from today, with all those entitled to the discount set to receive one before January. 

For the vast majority of recipients, £150 will be automatically deducted off their energy bill and they don’t need to take any action.  

However, some households will need to provide extra information to ensure they get the discount, with the letters advising them to call the helpline provided. They will need an electricity bill or statement to confirm the billpayer’s name and account number. 

It means around 6 million households will benefit this year, including 900,000 more families with children and a total of 1.8 million households in fuel poverty. 

Prime Minister Keir Starmer said: 

This cash injection will help people manage their bills while we fix the rusting energy system we inherited. 

Because it is only through our clean energy mission that we will get bills down for everyone in the long-run – creating jobs and economic growth along the way.

Energy Secretary Ed Miliband said: 

Letters will be dropping on doormats across the country this week containing welcome news for hundreds of thousands of families.

This government is determined to tackle energy affordability for families, and this winter more people will be helped as a result. 

And I would urge anyone who needs to provide extra information to follow the straightforward steps and make sure they get money off their bills this winter.

Every billpayer on means-tested benefits now qualifies for the Warm Home Discount, removing restrictions that previously excluded many who needed help and providing peace of mind to millions more families. 

Wholesale gas costs for consumers remain 75% above their levels during the year before Russia invaded Ukraine, and working people are paying the price. That is why we are getting Britain off the rollercoaster of fossil fuel prices and onto clean, homegrown power we control.  

 The only way to bring down bills for good is through government’s mission to get off the rollercoaster of fossil fuel prices and onto clean, homegrown power. Further proposals to support families will be announced in the Warm Homes Plan later this year.  

Eligibility

People in England and Wales will qualify for the Warm Home Discount this winter if they are receiving one of the following means-tested benefits and are named on the electricity bill, either in their own name, that of their partner, or their legal representative.  

• Housing Benefit  
• Income-related Employment and Support Allowance (ESA)  
• Income-based Jobseeker’s Allowance (JSA)  
• Income Support  
• Pension Credit (Guarantee Credit and Savings Credit)  
• Universal Credit

Around £240 million of unclaimed credit balances in closed accounts are waiting to be returned to consumers, according to data from energy regulator Ofgem. 

Consumers who have moved home in the last five years are being encouraged by Ofgem and Energy UK, the body which represents suppliers, to check letters and emails for final bills and contact their supplier if they think they could be due money.  

The latest Ofgem figures show 1.9 million closed accounts still have credit in them. All customers have to do to check if they are owed money is to contact their suppliers or log into old accounts.  

Suppliers always try and get any outstanding credit balances back to consumers when they close an account, but if the person moves on and doesn’t update them with onward contact details, it becomes almost impossible.  

More than 90% of closed account balances are returned automatically according to Energy UK, and suppliers want to ensure all consumers get what they are owed. 

Tim Jarvis, Director General for Retail at Ofgem, said:  

“Moving house requires a lot of life admin – and it’s understandable that some things will be missed. But with almost 2 million closed accounts currently in credit, the message is clear – if you’ve moved in the last 5 years, reach out to your old supplier, provide them with the correct information, and you could be due a refund.  

“Suppliers work very hard to return money to people when they close an account – due to the rules Ofgem has put in place, it’s in their interests to do so. However without the right contact details, they’re stuck. That’s why we’re working together to get the message out and return money to the people entitled to it.” 

Ed Rees, Energy UK’s Head of Retail Policy, said: 

“We know that energy bills remain a challenge for many households and suppliers are working hard to support customers, including making sure any credit on closed accounts is quickly returned. It’s always important to keep your contact details up to date so your supplier can provide support when you need it and so they can also then return unclaimed funds promptly. 

“There are a range of easy ways to get in touch, including email and webchat, and we’d encourage customers to contact their supplier if they need help or advice. If you’re moving, switching or closing an account, remember to keep your direct debit active until your final bill has been settled to avoid leaving money unclaimed.” 

Under Ofgem’s Guaranteed Standards of Performance, suppliers must issue a final bill within 6 weeks and refund within 10 working days – but missing customer details are delaying this.  

Consumers are being urged to check if they received a final bill and refund after switching suppliers or moving, and contact their old supplier or log into their old online account if you had one.  

When contacting suppliers, consumers should share full name, previous address, account number (if known), switch details, and contact information to help locate old accounts. 

Suppliers already work to minimise balances and return account balances to consumers. This includes by: 

• Avoiding account balance build up by engaging with customers whose balances are rising  
• Attempting to take accurate final meter reads  
• Asking new tenants for forwarding addresses for previous tenants  
• Creating easy application routes to return balances from cheques and via company websites and exploring other contact channels, such as increased use of email and Post Office Cash Out Vouchers  
• Settling estates for bereavements and the completion of probate  
• Using customer contact and third-party tracing with credit reference agencies for even relatively small balances after a period they are likely to have built up a new profile. This can take up to 9 months.   

Without the correct details, though, some account holders can’t be contact – so speaking to old suppliers is critical.  

Call to action 

Ofgem and suppliers are sending out a clear message – if you’ve moved in the last five years, phone your suppliers or log into old accounts to update details – you may be owed money.  

A scheme to tackle historical debt built up during the energy crisis could help around 195,000 customers by writing off up to £500m, Ofgem announced today.

The regulator confirmed a final consultation on the first phase of its Debt Relief Scheme will be published shortly as part of its plans to help consumers and support suppliers to bring down £4.4bn of debt in the energy system. 

The costs of recovering this debt, and in the worst case writing it off, are spread across everyone’s bills. That’s why Ofgem is moving forward with proposals that aim to bring debt down and reform the way energy debt is managed to prevent it building up again while protecting the most vulnerable.

Other steps include plans to trial changes to the process households must follow when they move into a new property. Currently when someone moves into a new home, energy accounts are switched to ‘occupier’. Bills build up under these anonymous accounts until the individual contacts a supplier to register. This is in contrast to the way this process works in many other countries across Europe, where consumers are required to set up energy accounts to get on supply.

In the worst-case scenario this debt – which suppliers estimate accounts for between £1.1 and £1.7bn (up to a third) of the historic debt currently in the system – is never paid and is written off. This is recovered via the debt allowance that is included in everyone’s bills, currently adding £52 under the current price cap. 

The proposals will include several safeguards to ensure consumers in vulnerable situations are protected, alongside measures to ensure support is targeted at those who need it. This could include adding credit to the smart meter when it is moved to prepayment mode for new tenants or homeowners, which would ensure they remain on supply while setting up an account with an energy supplier. 

Charlotte Friel, Director for Retail Pricing and Systems at Ofgem, said: 

“We know the growing amount of debt in the energy system is a significant challenge – for those that are living with the significant stress of being in debt, for households that ultimately face higher costs on their bills to cover the debt that can’t be recovered, and for the industry that is limited in its ability to innovate and invest because of the costs of debt.

“We must protect consumers by striking the right balance between making sure those that can pay are supported to do so, and targeting support at those who need it most. These proposals will both directly reach households and relieve the burden of unmanageable debt, while also making changes to the way that debt is managed in the sector. 

“This is a challenge that requires us all to work together across industry and government to deliver a fairer system that works for current and future consumers.”

Further changes from the regulator also include a new ‘Know your Rights’ document for consumers setting out what suppliers must do to support households struggling with debt.

The first phase of the Debt Relief Scheme, expected to launch in early 2026, will focus on people in receipt of means-tested benefits with more than £100 of debt built up between during the energy crisis (April 2022 to March 2024).

Eligible households will be expected to be making some contribution towards their debt or ongoing energy use, or if they are unable to do so at this time, be willing to work with a debt advice charity to seek help managing their debts. They would also be identified automatically and contacted by suppliers.

The regulator will publish consultations on the proposals in the coming weeks, with the aim of the Debt Relief Scheme being implemented early 2026. 

People who could qualify for winter fuel payments from the government have been warned by police about a rising number of scams.

You could get free energy saving improvements made to your home if you’re on a low income, getting certain benefits or living in a certain postcode area.

What you can get