The UK government has announced that more than 2.7 million additional households will benefit from a £150 discount on their energy bills this winter through the Warm Home Discount Scheme. The first of the eligibility letters are being sent out this week, marking a significant step in helping vulnerable families manage rising energy costs.
Who Will Receive the Discount?
A total of over six million households across England, Scotland, and Wales will now be eligible for the Warm Home Discount. The discount applies to households that are receiving one of the following means-tested benefits and are named on the electricity bill, either individually or with a partner or legal representative:
- Housing Benefit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Pension Credit (both Guarantee Credit and Savings Credit)
- Universal Credit
For those living in Scotland, the same eligibility criteria apply, with the added condition that you meet the specific criteria set out by your energy supplier.
How Do You Know If You Are Eligible?
Letters are being sent out to eligible households starting on Tuesday, with 250,000 households expected to receive notifications this week. By January 2026, every household entitled to the discount will have received a letter.
If you believe you’re eligible but do not receive a letter, you must contact the Warm Home Discount Scheme by February 28, 2026.
How Does the Discount Work?
For most eligible households, the £150 discount will be automatically applied to your energy bill, meaning no further action is required. However, some households may need to provide additional information, in which case they will be instructed to contact the helpline provided in their letter. You’ll need to have your electricity bill or statement ready to confirm the account holder’s name and account number.
What About Pre-Pay and Pay-As-You-Go Meters?
Households with pre-pay or pay-as-you-go meters are still eligible for the £150 discount. If you’re on a pre-pay meter, your energy supplier will inform you about how to access the discount, possibly in the form of a voucher that can be used to top up your meter.
Why is the Government Doing This?
The Warm Home Discount Scheme has been helping low-income and vulnerable households since April 2011, providing financial relief during the colder months. The government’s recent expansion of the scheme is aimed at addressing energy affordability, especially as heating costs rise during the winter.
Keir Starmer, Leader of the Labour Party, commented, “This cash injection will help people manage their bills while the government fixes the rusting energy system we inherited. It is only through our clean energy mission that we will get bills down for everyone in the long run, creating jobs and economic growth along the way.”
Energy Secretary Ed Miliband also emphasized the importance of tackling energy affordability: “I am determined to tackle energy affordability for families, and this winter more people will be helped as a result. I urge anyone who needs to provide extra information to follow the straightforward steps to make sure they get money off their bills this winter.”
Energy Price Cap Increase
It is important to note that Ofgem’s energy price cap increased by 2% from October 1, affecting the cost of energy for the typical household in England, Scotland, and Wales. This increase pushed the average energy bill for a household paying by direct debit for gas and electricity from £1,720 to £1,755 per year, just as colder temperatures have led to increased heating demand.
With these challenges in mind, the £150 discount is expected to provide crucial support to millions of families struggling with higher energy costs. The government’s support aims to ease the financial burden during the winter months, allowing families to stay warm and secure.
Stay tuned for more updates on how this initiative will continue to help the public this winter.
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