VAT to be SLASHED on energy bills as Andy Burnham tackles cost-of-living crisis
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Millions of households are being urged to check their doormats for a letter about £150 off their energy bills.
The letters are being sent across England and Wales from today, with some recipients required to take action before they can receive the support.
Around six million households across Britain are eligible for the Warm Home Discount this winter as temperatures begin to fall.
The scheme provides a £150 reduction on eligible households’ electricity bills.
Every billpayer receiving means-tested benefits now qualifies after previous restrictions were removed.
For many households, the discount will be applied automatically. However, some people will receive a letter asking them to contact a helpline and provide more information.
Anyone asked to call must do so by February 26, 2027, to secure the discount.
Letters will continue arriving until January 2027, and the Government is urging households to check their post carefully so they do not miss important instructions.
The expansion means significantly more families can receive help than in previous years.
Nearly 2.3 million additional households benefited from the rebate last year, including around one million families with children.
The discount forms part of wider efforts to ease pressure on household finances.
Other measures include the removal of VAT from electricity bills in October and a separate £150 reduction in energy costs introduced earlier this year.
Households will also continue to receive support beyond this winter. Ministers confirmed earlier this year that the Warm Home Discount scheme will remain in place until 2030/31.
Polly Billington, the Minister for Energy Consumers, said: “I know that many families will be struggling with their energy bills this winter.
“That is why I urge those who think they qualify for the Warm Home Discount to keep an eye out for a letter confirming their eligibility.”
Ms Billington described energy as “an absolute essential” and pointed to the government’s decision to cut VAT on all electricity bills in October, alongside the £150 reduction in costs delivered earlier this year.
“Energy is an absolute essential, which is exactly why in October we cut VAT on all electricity bills and earlier this year we removed £150 of costs off bills, giving families breathing space this winter,” she said.
Bus fares have also been capped at £2 as part of the wider package of support.
Ned Hammond, Deputy Director of Policy (Customers) at Energy UK, said: “The Warm Home Discount offers vital help for millions of households through the colder months, and this week the government will begin sending letters to eligible customers to explain how the support will be delivered.”
Mr Hammond encouraged anyone finding it difficult to pay their bills to get in touch with their supplier to explore what assistance might be available.
Stew Horne, Group Head of Sector Intelligence and External Affairs at the Energy Saving Trust, urged people to read their government letters thoroughly and act quickly if any response is required.
The minister also warned recipients to use only their usual method of contacting their energy supplier and to avoid clicking suspicious links or sharing financial details via email, text or unsolicited phone calls.
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