The Warm Home Discount scheme will open in October, providing a one-off £150 discount on energy bills to millions of households receiving Department for Work and Pensions (DWP) benefits. The discount is applied automatically by electricity suppliers for eligible customers, with most receiving the payment between November and January.
Who qualifies for the £150 discount
People claiming Universal Credit, Housing Benefit, or Employment and Support Allowance (ESA) qualify for the scheme. Pensioners receiving the Guarantee Credit element of Pension Credit are also eligible for the boost.
Under recent rule changes, all Universal Credit households now qualify for the Warm Home Discount. Previously, only some Universal Credit claimants were eligible, and this change extends the support to millions more residents than in previous years.
How the discount is applied
The £150 discount is applied either as an energy credit or through top-up vouchers, depending on how customers pay their bills. According to the Government: "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 Government adds that eligible customers will usually receive the discount automatically. Those whose supplier provides both gas and electricity may be able to get the discount on their gas bill instead, and should contact their supplier to find out.
Timing and impact on energy bills
The scheme launches in October, coinciding with an expected 4% rise in energy bills next month. British Gas has confirmed that for the winter 2026/2027 payment, the £150 discount will be applied between November 2026 and March 31, 2027 at the latest, with most customers receiving their Warm Home Discount before January 2027.
The support is designed to target the most vulnerable households and ease pressure around energy bills during the coldest time of the year. The one-off discount allows some of the poorest households to make savings during the Christmas period.
