The Department for Work and Pensions (DWP) is considering changes to the £150 Warm Home Discount, a scheme designed to help low-income households manage their energy costs.
While the government has confirmed that the payment amount will not increase, a recent consultation suggests that eligibility criteria could be expanded.
According to Manchester Evening News, millions of additional households may soon qualify for this support. The proposed adjustments could significantly impact benefit recipients as winter approaches.
Government considers expanding access to energy bill support
The Department for Work and Pensions (DWP) has updated the public on potential changes to the eligibility rules for the £150 Warm Home Discount. Currently available to certain low-income households, the scheme may be extended to include more benefit recipients in the next winter cycle.
The Warm Home Discount provides a one-time deduction from an eligible household’s electricity bill, applied directly by participating energy suppliers.
In England and Wales, individuals typically qualify if they receive the Guarantee Credit element of Pension Credit, or if they are on a low income with high energy costs.
Other means-tested benefits that may grant eligibility include Housing Benefit, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance (JSA), Income Support, the ‘Savings Credit’ part of Pension Credit, Universal Credit, and Child Tax Credit or Working Tax Credit, depending on income level.
These deductions are not direct payments to recipients but are applied automatically to electricity bills by participating suppliers.
Government Response: No Increase but Possible Expansion
During a Parliamentary discussion, Energy Minister Lord Philip Hunt confirmed that there are no plans to increase the £150 discount at this time. However, he announced that the government has launched a consultation on expanding the scheme for next winter.
We have recently published a consultation on expanding the Warm Home Discount Scheme for next winter, where we propose to remove the high cost to heat threshold, making all those on means-tested benefits eligible for the scheme.
These proposals would bring around 2.7 million households into the scheme – pushing the total number of households that would receive the discount next winter up to around 6 million.
If this expansion is implemented, millions more low-income households could receive support with their rising energy costs.
Additional Support for Pension Credit Recipients
The DWP has also encouraged those who might be eligible for Pension Credit to check their eligibility. This benefit not only tops up weekly income—bringing a single person’s earnings to at least £218.15 and a couple’s earnings to £332.95—but also unlocks further support.
Recipients of Pension Credit can qualify for free TV licences if they are aged 75 and over, as well as NHS cost exemptions and council tax reductions.
Pension Credit can also help recipients access cold weather payments and housing benefit top-ups, making it an important gateway benefit for those on low incomes.
While standard benefit rates will rise by 1.7% in April, the Warm Home Discount will remain fixed at £150, as it is a one-off payment not subject to inflation-linked adjustments.
Households already receiving benefits should check their eligibility for the upcoming scheme changes once the consultation process concludes.
Anyone uncertain about whether they qualify for Pension Credit or the Warm Home Discount can use official DWP resources or government eligibility calculators to determine their status.
