Millions of households across the UK are set to receive a vital financial boost this winter, as the government's Warm Home Discount scheme has been significantly expanded. For the first time, everyone receiving Universal Credit will be eligible for the one-off £150 payment designed to help with energy costs.
Who Qualifies for the £150 Payment?
The support scheme, which directly knocks £150 off domestic energy bills, has been broadened to assist more people during the ongoing cost-of-living crisis. The discount is a single payment applied during the colder months. The qualifying benefits for the Winter 2025/26 scheme are:
- Universal Credit
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Income Support
- the ‘Savings Credit’ element of Pension Credit
Additionally, low-income pensioners who receive the Guarantee Credit part of Pension Credit are also eligible for the crucial support.
When Will Households Receive the Discount?
The timing of the discount is managed by individual energy suppliers. It is typically applied to accounts between November and the end of January for most eligible customers. However, the window extends until March 31, 2026 at the very latest.
British Gas has stated that most qualifying customers will see the £150 credit on their account before January 2026. This means many households could see the reduction in January, providing a much-needed boost at the start of the new year. The support is provided either as a direct credit to the energy account or via a top-up voucher for those on prepayment meters.
A Key Winter Support Measure
This expansion marks a critical step in winter support, directly addressing fuel poverty by widening the safety net. The inclusion of all Universal Credit claimants, regardless of their specific earnings or circumstances, is a notable change that will bring relief to a larger number of working and non-working households.
The Warm Home Discount operates as a one-off, automatic payment for those on qualifying means-tested benefits, meaning most eligible people do not need to apply. The scheme underscores the continued pressure on household budgets from high energy prices and represents a key part of the government's targeted cost-of-living support for the winter of 2025/26.
