Major energy suppliers including British Gas and Octopus have begun contacting millions of households across Great Britain about a vital £150 cost of living payment designed to help with winter heating costs.
What is the Warm Home Discount Scheme?
The government's Warm Home Discount scheme provides a one-off £150 discount on electricity bills for eligible households. This year, the scheme has been significantly expanded, meaning around six million households will qualify – nearly double the number supported in previous years.
Energy companies are currently sending out letters explaining the scheme and informing customers when they can expect to receive their payment. For many, this support comes as an unexpected financial boost during the expensive Christmas period.
Who Qualifies for the Payment?
The eligibility criteria for the winter 2025/26 payment have been widened. For the first time, everyone who claims Universal Credit will now automatically qualify for the bill reduction from their energy supplier.
Other qualifying benefits include:
- Housing Benefit
- Income Support
- Employment and Support Allowance (ESA)
Low-income pensioners receiving the Guarantee Credit element of Pension Credit will also continue to receive the discount, ensuring some of the most vulnerable households are protected.
How and When Will Payments Arrive?
Most eligible customers should receive their £150 discount between November 2025 and January 2026, though some suppliers may process payments as late as March 31, 2026.
The discount is applied differently depending on how you pay your bills:
For most households, the £150 is issued as energy credit directly applied to their electricity account.
For customers on pay-as-you-go meters, suppliers will send a voucher that can be used to top up the meter at a Post Office.
British Gas confirmed in their update: "The discount will be added to your electricity account as a credit. And if you're on pay as you go, we'll send you a voucher you can use to top up your meter at a Post Office."
This expanded support comes at a critical time as energy costs remain high and households face increased financial pressure during the winter months.
