£150 UK Energy Bill Discount 2025: Millions of UK households will receive a £150 discount on their winter electricity bills thanks to the reopening of the Warm Home Discount scheme for the 2025-26 heating season.
With energy prices continuing to challenge household budgets, government action to expand and update this scheme remains crucial for those at risk of fuel poverty.
The payment is applied automatically by participating energy suppliers, adding crucial relief for vulnerable families, pensioners, and low-income earners across England, Wales, and Scotland.
What is the Warm Home Discount Scheme?
The Warm Home Discount is a government-backed scheme requiring major energy suppliers—and many smaller ones—to provide qualifying households £150 off their electricity bill for winter. This non-repayable payment is paid directly to the supplier, who applies the discount to eligible customers’ accounts.
The scheme’s goals are to alleviate fuel poverty, help the most vulnerable afford essential heating, and ensure no one is forced to choose between warmth and other essentials when cold weather strikes.
Who Is Eligible for the £150 Warm Home Discount?
Eligibility is determined as of the qualifying date (24 August 2025) and is largely automatic, but does vary depending on whether you live in England, Wales, or Scotland.
England and Wales
There are two primary qualifying groups:
- Core Group 1: Those receiving the Guarantee Credit element of Pension Credit.
- Core Group 2: Those on certain means-tested benefits such as:
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Universal Credit
- Housing Benefit
- Child/Working Tax Credits (with income below a given threshold)
Households must also have high energy costs, determined by the government. In most cases, you do not need to apply; eligible customers receive an official letter by mid-January 2026 and the discount is applied automatically.
Scotland
- If you get the Guarantee Credit element of Pension Credit (Core Group), you will be contacted automatically and the discount added to your bill.
- If you are on other means-tested benefits (Broader Group), you must apply via your energy supplier, as discounts are limited and not all suppliers participate.
Key Criteria
Country | Automatic or Application | Eligible Benefits / Criteria | Amount |
England/Wales | Automatic (letter issued) | Pension Credit (Guarantee Credit), or means-tested benefits + high energy cost | £150 |
Scotland | Application (Broader Group); Automatic (Core Group) | Pension Credit (Core); wide range of benefits (Broader) | £150 |
If you use a pre-payment meter, suppliers may credit your meter directly or send vouchers.
How Households Receive Their £150 Winter Discount
- Automatic payment: Most eligible households in England, Wales, and some in Scotland will receive a letter confirming sanction, then see the discount applied directly to their electricity bill by March 31, 2026.
- Broader group (Scotland): Must apply promptly via supplier due to limited number of discounts—first come, first served.
- Pre-payment customers: Receive credits or vouchers, with details outlined in the confirmation letter.
Only one Warm Home Discount is awarded per household, even if more than one qualifying member is present.
Important Dates and How to Appeal
- Letters sent: October to January 2026 for the winter 2025/26 scheme, detailing personal eligibility.
- Appeal deadline: 27 February 2026 to contact the Warm Home Discount helpline if you believe you are eligible but did not receive confirmation.
- Discount applied: On or before 31 March 2026 for eligible customers.
If you change supplier after the qualifying date, only the supplier used then will pay the discount.
Changes and Expanded Scope in 2025-26
The Warm Home Discount scheme was expanded in 2025, now including 2.7 million more homes and broadening eligible benefits. Income thresholds have become less restrictive, increasing access for low-income families and those in deprived areas.
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Table: Warm Home Discount vs Other Energy Support Programmes
Scheme | Payment | Eligibility | Application Needed? | Notes |
Warm Home Discount | £150 | Means-tested benefits, Pension Credit | Automatic (England/Wales), Applied (Scotland) | To supplier bill, once/year |
Winter Fuel Payment | £100–£300 | All pensioners (age 66+) | Automatic | Paid directly to bank account |
Cold Weather Payment | £25/week | Means-tested benefits; temp below 0°C | Automatic | Paid directly to bank account |
Household Support Fund | Variable | Low-income households (local council) | Applied | Seasonal, council-determined |
What to Do If You Miss Out
Households who believe they should qualify, but did not receive a letter, need to contact the DWP Warm Home Discount helpline before the appeal deadline. Scotland residents on the Broader Group must apply quickly as funds are limited.
If you’re not eligible for Warm Home Discount, you may qualify for other support schemes like Winter Fuel Payment or council-run hardship funds.
Conclusion: Warm Home Discount Eases UK Winter Energy Bills
With energy prices fluctuating and many families at risk of fuel poverty, the £150 Warm Home Discount provides vital relief for millions during the winter.
The 2025-26 expansion improves access, simplifies automatic payments, and supports vulnerable households against the cold. Knowing your eligibility and taking prompt action ensures you don’t miss out on this valuable benefit, helping UK families to stay warm and secure through the colder months.
FAQs
Q1: Who qualifies for the £150 Warm Home Discount?
Those on means-tested benefits or receiving Pension Credit Guarantee Credit as of 24 August 2025, with a participating supplier.
Q2: Do I need to apply for the discount?
In England and Wales, payment is automatic and confirmed by letter; in Scotland, some groups must apply via suppliers.
Q3: When is the Warm Home Discount applied?
The discount appears on your electricity bill before 31 March 2026 for eligible households.
Q4: What should I do if I don’t get confirmation but think I’m eligible?
Contact the DWP Warm Home Discount helpline before the appeal deadline (27 February 2026).
Q5: Can I receive more than one discount per household?
No, only one Warm Home Discount is awarded per household per year.