The UK government has confirmed a £150 discount on energy bills for millions of households in 2024 under the expanded Warm Home Discount scheme. Chancellor Rachel Reeves has also announced a further average reduction of £150 on bills from April, part of wider efforts to adjust energy pricing.
This extension of the Warm Home Discount will include all recipients of Universal Credit, broadening eligibility compared to previous years. The initiative is designed to support low-income households during the winter months, as the cost of living remains a challenge for many.
£150 One-off Discount to Support Energy Bills This Winter
More households than ever are set to receive a £150 deduction on their energy bills this winter, following new changes confirmed by Chancellor Rachel Reeves during the latest Budget announcement. According to Birmingham Live, the Warm Home Discount will now apply to everyone receiving Universal Credit, whereas in the past only certain claimants qualified based on additional criteria.
The one-off discount is applied directly to customers’ energy accounts, either as a credit or a top-up voucher, depending on the supplier. Energy companies are responsible for distributing the funds, with application periods stretching from November 2025 to the end of March 2026. Most households are expected to receive the payment before January of that winter, according to British Gas.
In addition to those on Universal Credit, low-income pensioners receiving the Guarantee Credit element of Pension Credit will also remain eligible. The government aims to ease the strain on financially vulnerable households during the coldest months, where energy demand typically increases.
The scheme is not a direct cash payment but serves as a crucial credit towards energy use, reducing overall household expenses. This revised eligibility is expected to bring relief to a greater number of families, particularly as inflation continues to affect household budgets across the UK.
Energy Charging Changes to Deliver Further Savings From April
Alongside the winter payment, further relief is expected from April when the government will implement changes in how energy customers are charged. According to Birmingham Live, this adjustment is forecast to bring an average reduction of £150 per household annually, though the specifics of the new pricing structure have yet to be detailed by the government.
The goal of the reform is to make energy costs more manageable and to better align billing with actual consumption, particularly benefiting lower-income families who may be disproportionately affected by rising fixed charges. This measure builds on the government’s broader cost-of-living strategy aimed at helping households facing financial hardship.
Rachel Reeves has positioned these changes as part of Labour’s renewed approach to addressing household affordability. By revisiting existing schemes and updating eligibility criteria, the Treasury is attempting to deliver more inclusive and timely support.
Suppliers like British Gas have confirmed their timelines for applying the discount and advised customers to check eligibility via official channels. The government has not announced whether additional cost-of-living payments will be altered, but this extension of the Warm Home Discount signals continued targeted intervention.
