Millions of households receiving Universal Credit, Employment and Support Allowance (ESA), Housing Benefit and Pension Credit will receive a one-off £150 Warm Home Discount on their energy bills from October 2026. The Labour government extended the scheme, meaning around double the number of households now qualify compared with previous years.
The discount is applied automatically as either an energy credit or top-up vouchers, depending on how customers pay their bills. The money is not paid directly to the claimant. The scheme runs through the winter, with most payments applied between November 2026 and January 2027, and all eligible households receiving the discount by March 31, 2027.
Who is eligible for the £150 discount
Everyone on Universal Credit now qualifies for the help, along with claimants of Housing Benefit and Employment and Support Allowance (ESA). Some of the poorest pensioners, specifically those receiving the Guarantee Credit element of Pension Credit, are also eligible.
This expansion follows a change by the Labour government to widen eligibility. The discount is a one-off £150 off energy bills during winter, providing crucial cost-of-living support for some of the poorest families at the most expensive time of year.
Energy bills rise by 4% from October
The payment comes as energy bills are set to rise again by 4% from October, piling more pressure on households. The Warm Home Discount is intended to offset some of this additional cost.
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. You'll usually get the discount automatically if you're eligible."
It adds: "You may be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity and you're eligible. Contact your supplier to find out."
When will the discount be applied
The scheme launches again in October, though it could be March before everyone gets the discount. It depends when energy suppliers decide to apply it. For most households, this tends to be between November and January.
British Gas said in an update to customers: "If you qualify for the winter 2026/2027 payment, you will have your one-off £150 discount applied between November 2026-March 31, 2027 at the latest, with most customers receiving their WHD before January 2027."
Eligible households do not need to apply; the discount is applied automatically by their electricity supplier. Those who believe they qualify but do not receive the discount should contact their supplier.
