How to get financial help with energy bills
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One of the big changes announced in the Autumn 2024 Budget was the rules around Winter Fuel Payment for pensioners.
From winter 2024/2025, households in England and Wales will not be entitled to this extra financial support unless they receive Pension Credit or certain other means-tested benefits.
Some people are understandably worried about what this will mean given the Energy Price Cap has once again gone up.
The good news is that there are other ways to get help with energy bills if you need it.
Here the annual schemes to look out for
Winter Fuel Payment
If you previously received the Winter Fuel Payment, it’s worth noting that there have been some big changes.
Eligibility for Winter Fuel Payment
For winter 2024/2025, only those born before 23 September 1958 and living in England, Wales or Northern Ireland are eligible for the Winter Fuel Payment.
To receive the Winter Fuel Payment, you also have to be the recipient of one of these benefits between 16 to 22 September 2024:
- Pension Credit
- Universal Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Child Tax Credit
- Working Tax Credit
You won’t be eligible for the payment if you live in Scotland as it has a separate scheme called Winter Heating Payment, which is paid out by the Department of Work and Pensions.
You also won’t be eligible for the payment if you:
- have been in hospital getting free treatment for more than a year
- were in prison for the whole of the week of 16 to 22 September 2024
- were living in a care home for the whole time from 24 June to 22 September 2024
Just to make the rules even more confusing, some people living abroad or in a care home may be eligible for Winter Fuel Payment after all – even though the rules first state that they’re not.
It all depends on whether you fit a specific set of criteria so double check if this applies to you.
How much you will get
For the 2024/2025 winter season, you’ll get either £200 or £300, and you should receive a letter stating exactly how much.
The £200 is for anyone born between 23 September 1944 and 22 September 1958 – or if the partner they live with and claim benefits with is.
And the £300 is if you were born before 23 September 1944 – or are living with and claiming benefits with a partner who is.
This is significantly lower than before as the additional Pensioner Cost of Living Payment from previous years has been scrapped.
How to apply for the Winter Fuel Payment
The one-off Winter Fuel Payment is deposited directly into the bank account you receive benefits into, so you don’t need to do anything.
And you should receive the money by 29 January 2025.
If you think you’re eligible but haven’t received a letter by the end of November, you can apply by calling the Winter Fuel Payment Centre on 0800 731 0160.
Warm Home Discount Scheme
A number of energy suppliers operate a Warm Home Discount Scheme where you can get a one-off credit payment applied to your electricity bill.
Eligibility for the Warm Home Discount Scheme
The Warm Home Discount Scheme is only available in England, Wales and Scotland – but not Northern Ireland.
For those living in Northern Ireland, there’s the Affordable Warmth Scheme.
If you live in England and Wales, you’ll qualify for the scheme if you get the Guarantee Credit element of Pension Credit or are on a low income and have high energy costs.
You need to be the recipient of certain means-tested benefits or tax credits to be considered low income in this case.
As for high energy costs, it’s not how much you pay for your energy bills but what your home’s energy cost score is.
And this is calculated using your property’s type, age and floor area.
In Scotland, you’ll qualify if you get the Guarantee Credit element of Pension Credit or are on a low income and meet your energy supplier’s criteria for the scheme.
How much you will get
For the 2024/2025 winter season, the Warm Home Discount is £150.
It should be applied to your bill by 31 March 2025.
How to apply for the Warm Home Discount
Those receiving the Guarantee Credit element of Pension Credit will get a letter between October 2024 and early January 2025.
It will state whether you’re eligible for the scheme or might be eligible for the scheme.
If it’s the former, you don’t need to do anything; the discount will be automatically applied to your energy bill.
If it’s the latter, you’ll need to respond to the letter and confirm your details. And then if you’re eligible, the discount will be applied automatically.
For those on low incomes in England and Wales, the process is the same – you should receive a letter automatically.
In Scotland, if you’re on a low income, you will need to contact your energy supplier to see if you’re eligible.
Because there are limited discounts available, you’ll need to apply as early as possible.
Finally, if you think you might be eligible for the scheme but haven’t received a letter by early January 2025, get in touch with the Warm Home Discount Scheme by calling 0800 030 9322.
You will need to do this by 28 February 2025 though.
Cold Weather Payment
When there’s persistent cold weather, the government gives out a Cold Weather Payment.
Eligibility for Cold Weather Payment
The Cold Weather Payment only applies to those living in England, Wales and Northern Ireland.
Those in Scotland receive a Winter Heating Payment instead.
You might qualify for the payment if you receive one of the following benefits:
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Universal Credit
- Support for Mortgage Interest
If you’re receiving a benefit other than the Pension Credit, you may also need to fit additional criteria to be eligible for payment so do double check.
How much you’ll get paid
The winter 2024/2025 season is considered to be between 1 November 2024 and 31 March 2025 for this scheme.
During this period, you’ll get £25 for each seven day period of very cold weather.
This is defined as when average temperatures in your area are recorded as or are forecasted to be zero degrees Celsius or below.
How to apply for Cold Weather Payment
You don’t need to apply for the Cold Weather Payment – it’s made automatically if you’re eligible.
You should get a payment within 14 working days after each period of very cold weather in your area.
This money is paid into the same bank or building society account as your benefit payments.
Tax relief and expenses
Whether you’re an employee or are self-employed, you can offset some of the costs of working from home.
If you’re an employee, things have changed since the Covid years so it’s worth checking if the allowances still apply to you.
Now you can only claim relief for working from home if your job requires you to live far away from your office or if your employer does not have an office.
You can claim £6 a week without having to keep any receipts – it’s a flat rate whether you’ve only worked a day at home or are home all week. Or if you have receipts covering your exact additional costs, you can claim these instead.
For those who are self employed, how much you can claim will depend on how much time you spend working at home.
The flat rate, which must be claimed as an expense, ranges from £10 to £26 a month.
Local council support
Local councils sometimes have support schemes that are separate from the national government ones.
These might include discount vouchers, or items to help you stay warm or save electricity.
In previous years for example some councils handed out electric blankets, slow cookers and air fryers.
Help from your energy supplier
If you’re struggling to pay your bills, it’s worth speaking to your energy supplier first.
They may be able to restructure your payments to make it more affordable per month – although do double check whether this increases what you’re paying overall.
They could also check whether you’re on the best tariff available. Economy 7 tariffs may work out cheaper for example, if you use most of your energy at night.
This post was originally published in October 2023. It was updated in November 2024.
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