The UK government has introduced the Warm Home Discount Scheme to help low-income households cope with rising energy costs during the winter months. This program offers a £150 discount on electricity bills, providing crucial financial relief.
The scheme is set to benefit millions of eligible households, including those receiving certain government benefits. As winter 2025/26 approaches, the government has expanded the scheme, increasing the number of people who will qualify.
According to information from Birmingham Mail, the discount will be applied directly to electricity accounts for eligible recipients. This expansion aims to ensure broader coverage and ease financial pressure during colder months.
What is the Warm Home Discount (WHD)?
The Warm Home Discount is a government-led initiative designed to assist those on low-income benefits with their energy costs. It provides a one-off £150 discount applied directly to electricity bills, rather than in the form of a cash payment. This helps people reduce their energy expenses during the winter months, a time when bills tend to rise due to increased heating needs.
For winter 2025/26, the WHD scheme is being expanded to include even more households. Around three million additional people will be eligible for the discount this year, which significantly broadens the programme’s reach.
Individuals who are receiving benefits such as Universal Credit, Employment and Support Allowance (ESA), Housing Benefit, or Income Support will be eligible for this discount. Additionally, pensioners on the Guarantee Credit element of Pension Credit will also qualify.
Who Can Claim the £150 Discount?
Millions of households will qualify for the Warm Home Discount this year, with the extension benefiting three million more people. The government is making a concerted effort to ensure that the most vulnerable are supported through this initiative.
The Department for Work and Pensions (DWP) has confirmed that all individuals receiving Universal Credit will now automatically qualify for the scheme, making it easier for low-income households to access the support they need. This change aims to assist those on the lowest incomes, including working-age people, pensioners, and families. In addition to Universal Credit, people receiving other benefits such as Income Support or Employment and Support Allowance are also eligible.
British Gas explained:
If you qualify for the winter 2025/26 payment, you will have your one-off £150 discount applied between November 2025 and March 31, 2026, at the latest, with most customers receiving their WHD before January 26.
If you’re eligible, the £150 discount will be credited directly to your electricity bill. This is particularly important for families or individuals who may be struggling to pay high winter energy bills. For those on Pay As You Go meters, the discount will be provided in the form of a voucher, which can be used at a Post Office to top up the meter.
Some smart meter customers will even receive the credit directly on their meters, with a confirmation email to notify them of the update.
How and When Will the Discount Be Applied?
The Warm Home Discount will be applied to your energy account between November 2025 and March 31, 2026, though the majority of customers will receive their discount by January 26, 2026. The specific timing of the discount will depend on your energy supplier, but it’s guaranteed that eligible customers will see the £150 credit on their accounts.
For customers with Pay As You Go meters, the credit will be sent via voucher, which can be redeemed at a Post Office. British Gas and other energy companies will send notifications to eligible customers, informing them when the discount has been applied. Additionally, customers who have a smart meter will receive the credit directly onto the meter, along with an email to notify them of the update.
The Department for Work and Pensions (DWP) will be writing to people in England and Wales to confirm eligibility for the discount. This ensures that eligible individuals are aware of the support available to them.
