Thousands of households across the United Kingdom are discovering a welcome financial boost in their post, as letters detailing an automatic £150 energy bill discount are dispatched. The initiative forms a key part of the Department for Work and Pensions' (DWP) Warm Home Discount scheme, designed to assist vulnerable residents during the coldest months.
What is the Warm Home Discount Scheme?
The Warm Home Discount is a one-off £150 discount applied directly to the electricity bills of eligible customers. Its primary purpose is to provide crucial support to those who are vulnerable or may struggle with the high cost of heating their homes throughout winter, when energy consumption and prices typically peak.
For the 2025-2026 scheme year, the discount will be applied anytime between October 2025 and the end of March 2026. The process is largely automatic for many, with the discount either credited to the customer's account or, for those on prepayment meters, often provided via a top-up voucher.
Who Qualifies for the Automatic Payment?
Eligibility falls into two distinct groups. Core Group 1 includes individuals who receive the Guarantee Credit element of Pension Credit as of 24 August 2025. This group typically receives the discount automatically without needing to apply.
Core Group 2 is broader, encompassing customers who do not qualify for Pension Credit but are on a low income and meet specific criteria set by their energy supplier, such as receiving certain means-tested benefits. Those in Group 2 usually need to apply directly to their supplier, provided it participates in the scheme.
It is vital to confirm your supplier's participation. Any energy supplier with over 150,000 customers is legally required to offer the scheme, which covers all the 'big six' providers. A number of smaller suppliers also choose to offer it voluntarily.
The Major Energy Suppliers Involved
The so-called 'big six' energy providers, whose customers are among those receiving letters, are:
- British Gas
- EDF
- E.ON
- OVO Energy
- Scottish Power
- Octopus Energy
The market has seen significant shifts, with Octopus Energy overtaking British Gas in late 2023 to become the UK's largest electricity supplier. By June 2025, it had closed the gap in the gas market to become the country's overall largest energy supplier.
Experts at Uswitch advise customers: "If you're on a prepayment meter, your supplier will decide how the discount is applied, but it's frequently issued as a voucher you can use to top up your meter." Households are encouraged to check their post and online accounts for communications from their supplier to ensure they do not miss out on this essential winter support.
