Millions on 4 benefits must act by Sunday to secure £150 boost

Energy customers have just days left until Sunday to secure a £150 payment delivered directly into their accounts. Households must act by 23 August or risk missing out entirely.

Approximately six million households will receive the rebate this winter, with roughly 250,000 in Scotland getting it automatically for the first time. Yet the Andy Burnham government has encouraged eligible households to verify they're named on their bill to receive the Warm Home Discount automatically.

This comes after the Prime Minister's swift decision to scrap VAT on domestic electricity bills from 1 October as one of his earliest actions in office, knocking £45 off the annual Ofgem price cap. Officials said the reminder follows immediate measures to eliminate VAT from electricity bills from 1 October, providing households with cost-of-living relief.

Those claiming means-tested benefits automatically qualify for the Warm Home Discount, provided they're listed as their household's energy bill payer. Their name must appear on the energy bill by 23 August to access the support, so checking now and making any required amendments is advisable.

On Wednesday Ofgem will announce its quarterly energy price cap for the period October 1 to December 31. Household energy prices are set increase again to the highest level for three years heading into winter, according to new forecasts.

Bills are due to increase despite the Prime Minister’s plan to remove VAT from household electricity bills from October. The energy price cap is currently expected to increase by 4% in October compared with the current rate, experts at Cornwall Insight said.

For the £150 bonus, eligible customers using pre-payment meters who top up with a key or card will also need to confirm their household's account is registered under their name. Energy customers have been informed that 24 firms have joined a scheme delivering millions a £150 payment straight into their accounts.

Every household where the billpayer receives means-tested benefits qualifies for the rebate. In England and Wales, those receiving Housing Benefit, Income-related Employment and Support Allowance, Pension Credit and Universal Credit will be eligible – the same group as last winter.

The government says around six million households are in line to receive the discount after the scheme was expanded last year.

In England and Wales, households in receipt of the following benefits are eligible:

In Scotland, around 250,000 households will get the payment automatically for the first time.

Energy bills have already risen by 13% this summer, and a further 4% hike is expected later in the year.

Energy Secretary Miatta Fahnbulleh said: "Families will be worried about their energy bills this winter and our focus is on giving them breathing space, as we continue to work to bring down bills. Almost a million more families with children received the £150 Warm Home Discount last winter, after we expanded scheme.

"If you know someone who might benefit, please start spreading the word and encourage them to check they are named on their energy bill. ".