The Department for Work and Pensions (DWP) is issuing a £150 Warm Home Discount to certain pensioners from October, providing one-off support towards winter energy bills. The payment targets retirees on low incomes who receive the Guarantee part of Pension Credit, with the discount applied automatically by energy suppliers between November and January for most households.
Who qualifies for the £150 payment
Retirees aged 65 and over on low incomes qualify for the Government's Warm Home Discount if they receive the Guarantee element of Pension Credit. The discount is applied either as energy credit or top-up vouchers, depending on how customers pay their bills. The money is not paid directly to the claimant but is deducted from their electricity bill.
The scheme launches in October, though most households typically wait until between November and January for their energy company to apply the discount. British Gas has confirmed that eligible customers for the winter 2026/2027 payment will have the £150 discount applied between November 2026 and March 31, 2027 at the latest, with most receiving it before January 2027.
Energy bills set to rise 4% next month
The support arrives as households prepare to switch heating on for colder weather, with energy bills expected to increase by 4% next month. The timing is intended to help some of the poorest pensioners manage the additional financial pressure during the winter period.
The Government states: "The Warm Home Discount Scheme is a one-off £150 discount off your electricity bill. If you're eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you." The discount may be applied to gas bills instead if the supplier provides both gas and electricity and the customer is eligible, with the Government advising customers to contact their supplier to arrange this.
One million pensioners missing out on Pension Credit
The announcement serves as a reminder for older people to check their eligibility for Pension Credit, which is the gateway to the Warm Home Discount. Around one million eligible retirees currently do not claim the benefit, meaning they could miss out on the £150 support.
Pensioners who qualify for the Guarantee part of Pension Credit will receive the discount automatically if they are eligible, according to the Government. The scheme is part of wider cost-of-living support measures aimed at helping vulnerable households manage energy costs during the winter months.
