Millions of households across the United Kingdom are now receiving crucial financial support to help manage their energy costs this winter, as a key government scheme is rolled out.
What is the Warm Home Discount?
Energy suppliers have begun applying the one-off Warm Home Discount (WHD) to eligible customers' accounts for the winter of 2025. This direct support provides a £150 reduction on gas and electricity bills. The discount is typically applied between the months of November and January for most recipients.
If you qualify for the scheme, your energy supplier should have contacted you by letter. The discount is issued either as a credit applied directly to your energy account or, for some customers on prepayment meters, as a top-up voucher.
Major Expansion Means More Help for Families
This year marks a significant expansion of the support programme. The government has widened the eligibility criteria, meaning around three million additional households will benefit from the £150 payment each year.
A major change is that everyone who claims Universal Credit will now automatically qualify for the Warm Home Discount. Previously, only a portion of Universal Credit claimants were eligible. This shift is expected to bring vital relief to many more working-age families facing financial pressure.
Who Else is Eligible for the Payment?
The support extends beyond Universal Credit claimants. Other groups qualifying for the bill reduction include:
- People receiving Housing Benefit.
- Those on Income Support.
- Claimants of Employment and Support Allowance (ESA).
Low-income pensioners who receive the Guarantee Credit element of Pension Credit will continue to receive the discount as they have in previous years.
Prime Minister Keir Starmer commented on the policy, stating, "We're concentrating on the single most important issue for families up and down the country, which is the cost of living, by taking £150 off their energy bills. That's an addition of £150 for six million of the poorest households."
The initiative is designed to ease the burden of high energy costs during the coldest months, freeing up money for other essential household spending. For many, this £150 saving could make a tangible difference in managing overall cost-of-living pressures this winter.
