Eligible Pension Credit customers who qualify for the discount were identified after the Department for Work and Pensions cross-checked its records with energy suppliers.
Customer data was matched with records from more than 50 participating suppliers so that 95% of pensioners who will get the discount will receive it without having to lift a finger - savings totalling £137 million.
The deduction, called the Warm Home Discount Scheme, will be taken automatically from energy bills before March 2021, with most pensioners receiving their discounts between now and January.
A further 220,000 pensioners who meet part of the eligibility criteria but are not yet benefiting will receive a letter encouraging them to claim via a dedicated helpline.
Secretary of State for Work and Pensions, Thérèse Coffey, said:
This Government has actively helped pensioners on low incomes with their energy bills. We know how important it is that people keep their homes warm during the cold winter months, which is why I am thrilled that we have used our IT to ensure nearly one million pensioners automatically see their bills reduced.
The Warm Home Discount Scheme will be extended until at least March 2022, reducing the pressures on low income and vulnerable customers worried about being able to pay their energy bills.
The £350m fund, which supports working-age people as well as pensioners, helps the government tackle fuel poverty across Britain by slashing the energy bills of low income households by £140 per year. Pension Credit provides extra income to those claiming State Pension, with 977,000 claimants pinpointed for the fuel discount through a data-matching exercise.
Additional Information
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Currently, more than 1.5 million older people across Great Britain receive extra financial help through Pension Credit.
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We would encourage anyone who thinks they might be eligible for Pension Credit to visit gov.uk/pension-credit. It only takes a few minutes to get an indication of how much they could get using the online Pension Credit calculator and a claim can be made online or by calling the free claim line 0800 99 1234.
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Visit the Warm Home Discount Scheme page f
