Millions of households receiving Universal Credit are beginning to see an unexpected change in their energy account statements this October. A new phase of government support is being deployed across the country as part of ongoing efforts to reduce winter energy costs for low-income families.
According to a report by Birmingham Mail, a payment of £150 is being issued to eligible homes under the Warm Home Discount scheme. The initiative is currently being rolled out and will continue over the coming months. While the measure is automatic for most, not all recipients have been notified yet by their energy suppliers.
£150 Energy Boost For Universal Credit Homes
Millions of low-income households, including Universal Credit claimants, are now receiving an unexpected £150 boost to help with soaring energy bills this winter. The expanded Warm Home Discount (WHD) program, which launched in early October, has doubled in reach compared to previous years, with around six million households now eligible for support.
This marks a major shift in policy, providing automatic energy relief to a significantly broader range of households.
The government initiative, aimed at easing the pressure of the ongoing cost of living crisis, delivers the £150 either as a direct credit on energy bills or as a voucher, depending on the household’s payment method. Crucially, this is the first time ever that all individuals receiving Universal Credit will automatically qualify for the support.
Expanded Eligibility Includes More Low-Income Households Than Ever Before
This winter’s Warm Home Discount scheme has introduced the most inclusive eligibility criteria since its inception. As stated by the Department for Energy Security and Net Zero,
“For the first time ever this year, everyone who claims Universal Credit will qualify, along with those on other benefits like Housing Benefit, Income Support and Employment and Support Allowance.”
This automatic qualification process means that households do not need to apply themselves. Instead, the government identifies eligible customers by cross-referencing Department for Work and Pensions (DWP) records with energy suppliers. Letters or emails from energy providers will confirm eligibility and payment details. Eligible households are advised to
“look out for letters or emails from their energy suppliers setting out more information.”
Beyond Universal Credit, the program continues to cover low-income pensioners who receive the Guarantee Credit element of Pension Credit. With the expansion confirmed earlier this year by Labour, the WHD now supports twice as many households compared to last year. The government’s statement emphasized this scaling up was made possible “after Labour confirmed more would get cost of living support.”
Payment Timeline And Methods Vary Depending On How Bills Are Paid
Although the scheme began officially at the start of October, the £150 payments are being rolled out over several months. Most recipients are expected to receive their payment before the end of the year, though payments will continue to be made any time between October and March.
The way households receive their support depends on how they pay for their energy. Those who use direct debit will see the discount applied automatically as a credit to their energy account, with no action required. Meanwhile, pay-as-you-go customers will receive a voucher worth £150, which they can redeem when topping up their meter.
The government has not provided a universal payment schedule, as distribution depends heavily on each supplier’s internal systems and processing times. However, most energy firms have indicated that they aim to complete the rollout by December wherever possible.
Universal Credit Claimants Gain Predictable Help Amid Rising Costs
As temperatures begin to drop and heating bills rise, the extension of this scheme arrives at a critical time for millions of families struggling to make ends meet. For many on Universal Credit, this will be the first direct assistance they receive specifically targeted at their energy costs.
While £150 won’t eliminate the winter burden entirely, it can offset a month’s worth of electricity or gas for smaller households or provide a financial buffer for more energy-intensive homes. The automatic nature of the support, without the need for application, adds a layer of predictability and reduces administrative hurdles for vulnerable claimants.
