Martin Lewis explains millions more households will get £150 energy bill discount

Martin Lewis has explained how millions more households are likely to receive a £150 energy bill discount from this winter.

The Warm Home Discount gives you £150 off your electricity bill, normally between October and March. In order to qualify for this in England and Wales, you either have to claim the Guarantee Credit element of Pension Credit, or means-tested benefits and have high energy costs.

But in an update today, the Department for Energy Security and Net Zero (DESNZ) said it is opening a consultation on removing the so-called "high-cost-to-heat" element of the Warm Home Discount, which is the score that determines whether a property is considered to have high energy costs. This means anyone claiming the right means-tested benefits in England and Wales would get this discount.

If you live in Scotland, you qualify if you get the Guarantee Credit element of Pension Credit, or you claim a means-tested benefit. Some electricity providers have extra eligibility criteria. DESNZ also wants to increase the level of funding available in Scotland so more households can qualify for the Warm Home Discount.

It's estimated these changes would mean an extra 2.7 million households would receive the discount next winter, increasing the total number of recipients to 6.1 million households. Speaking during his Martin Lewis Money Show Live broadcast on ITV this evening, Martin explained: "The Warm Home Discount is £150 given to homes on low incomes… If you're on the guaranteed element of Pension Credit, you get it.

"You also, if you're on means-tested benefits, like Universal Credit that helps working and non-working people on low incomes, you get it, as long as your home has a high energy rating. In other words, it's inefficient. It's a perverse system that rewards people for inefficiency - and the way it's being put in practice has been absolutely terrible… The Government announced today they're scrapping that criteria. So now everyone on means-tested benefits, the right means-tested benefits, will be eligible. It's £150, 2.7 million extra people. Hopefully this winter."

It comes after Ofgem announced energy bills are rising again, with the price cap is rising by 6.4% from April. The typical dual fuel household paying by direct debit will see their annual energy bill increase from £1,738 a year to £1,849 - a rise of £111 a year, or £9.25 a month.

Ofgem CEO Jonathan Brearley said: “Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow. This puts families under huge stress and increases costs for all customers.

“We’re developing plans that could give households with unmanageable debt the clean slate they need to move forward. We welcome the government's support for these plans, and their plans to expand the Warm Home Discount, which will also offer financial help to nearly three million more households that need it most.”