Energy bill discounts explained as 250,000 to receive one-off £150 reduction

More than 250,000 families in the UK will receive a letter from today (28 October) confirming they will receive a one-off discount on their energy bills this winter.

It comes after Prime Minister Keir Starmer announced plans to provide financial support to those most in need as part of an extension of the warm home discount scheme last year.

The families who qualify for the payment will receive a letter any time from today until the end of January letting them know they are eligible.

When he announced the scheme, 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."

Starmer announced the Warm Home Discount last year (Carl Court/Getty Images)

Rather than receiving the cash in their banks, the majority of people receiving the bill reduction will simply have the £150 deducted from their energy bills automatically without having to do anything, though some households will be required to provide some extra information.

This could include energy bills and statements, as well as account names and numbers - the letters being sent to each individual household will provide instructions on how to proceed.

"Letters will be dropping on doormats across the country this week containing welcome news for hundreds of thousands of families," energy secretary Ed Miliband said, as per the Independent.

"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."

250,000 homes are expected to receive letters from today (Getty Stock Images)

The Warm Home Discount was expanded to replace the previous 'hard to heat' rule in England and Wales, providing financial support for low-income families who receive certain benefits. While the previous scheme only covered people living in energy-efficient homes, the new system applies to anyone who meets the financial criteria.

For anyone who is worried about their energy bills, many of the main providers in the UK are providing additional support, including British Gas and Octopus.

British Gas has put together a £140 million support pot for customers struggling to cover their bills under the Energy Support Fund.

And Octopus Energy has a £30 million Assist Fund to help struggling customers.