UK Households Urged to Act on £150 DWP Discount Scheme – Find Out If You Qualify!

Money experts are advising UK homeowners to check their eligibility now as the Department for Work and Pensions (DWP) reopens the £150 Warm Home Discount (WHD) scheme. An estimated three million households are expected to benefit from this government initiative, aimed at supporting low-income households during the colder months.

What is the Warm Home Discount?

The WHD scheme, introduced in 2011, places a legal obligation on gas and electricity suppliers to provide financial support to low-income individuals, especially the most vulnerable. This includes those living alone, in fuel poverty, or susceptible to cold-related illnesses.

The scheme offers a one-off, £150 discount applied directly to the recipient's electricity bill. Those eligible include individuals on low incomes or receiving Pension Credit, providing much-needed relief as energy costs rise.

How is Fuel Poverty Measured?

In England, fuel poverty is determined using the ‘Low Income Low Energy Efficiency’ (LILEE) metric. A household is considered fuel poor if:

• It has a residual income below the poverty line after accounting for fuel costs, and
• It resides in a home with an energy efficiency rating below Band C.

Eligibility Requirements

According to experts at fuel supply company Your NRG, the £150 discount is paid directly to energy providers, ensuring the credit reduces energy costs. However, eligibility rules have changed since 2022, meaning some who previously qualified may no longer be eligible. Conversely, some households that didn’t qualify before might now need to apply for the discount if they don’t automatically receive it.

To be eligible, you must:

• Receive the Guarantee Credit element of Pension Credit, or
• Be on a low income with high energy costs.

It is crucial that households check their energy provider’s website to confirm when the scheme opens and whether any action is necessary. In some cases, if your supplier offers both gas and electricity, you may be able to apply the £150 credit to your gas bill instead—just check with your provider once the scheme goes live.

For those using Pay As You Go or Prepayment meters, support will come as a voucher to top up your meter, ensuring even customers without credit accounts can benefit.

Additional Support for Scotland

People in Scotland should be aware of additional assistance, including the £58.75 Winter Heating Payment and the £151.50 Child Winter Heating Payment, which could further support low-income and disabled households.

If you qualify, you should receive a letter between October 2024 and January 2025, explaining your eligibility and any necessary actions. If you haven’t received this letter by January, it’s important to contact your supplier or the WHD helpline.

Experts warn not to delay, as the £150 credit must be claimed before February 28, 2025. With energy prices expected to rise by 10% this month, it’s crucial to ensure you’re accessing all available financial support.