British Gas and Octopus updates customers on automatic £150 payment

Energy giants British Gas and Octopus have told certain customers they can expect their bills to be slashed over winter. It's part of the Warm Home Discount scheme which knocks £150 off bills for low-income pensioners and vulnerable households.

It's designed to ensure these people, mainly those who are older, can keep their homes warm during the winter months and aren't left living in freezing conditions. Energy companies like British Gas and Octopus have explained to customers how it will work.

Eligible households will be getting letters from the Government setting out what will be happening. The discount could be applied by energy suppliers any time over winter, up to the end of March.

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The £150 is not given out as a cash payment but as credit to energy accounts or a voucher which can be cashed in at a post office. This ensures the discount is not spent on something else and directly helps with energy costs.

Those on the Guarantee Credit element of Pension Credit will qualify, as well as some other households with low incomes and high energy costs.

British Gas explained: "It’s there to provide support for those living on low incomes or pensions. If you qualify for the winter 2024/25 payment, you will have your one-off £150 discount applied by the end of March next year at the latest.

"The discount will be added to your electricity account as a credit. And if you're on Pay as you go, we'll send you a voucher you can use to top up your meter at a post office." Octopus said: "The Warm Home Discount helps eligible customers cover their high winter bills. Customers who qualify receive a credit of £150 towards their energy bills before March 31, 2025.

"Between October 2024 and mid-January 2025, letters will be sent to qualifying customers for Core Group 1 and Core Group 2. The letter will confirm if you are eligible for an automatic rebate or advise you to call a helpline to check if you are eligible."