Millions of UK households have started receiving letters confirming their eligibility for the Government’s Warm Home Discount scheme. The £150 payment will be applied directly to electricity bills over the coming months – providing welcome relief as energy costs rise again this autumn.
The Department for Work and Pensions (DWP) began issuing letters on 20 October 2025, outlining who qualifies and how the discount will be applied. Around six million homes will benefit from the scheme this winter, following rule changes that expand support to more low-income families.
Energy experts say that even a modest £150 discount can make a difference for those facing higher heating costs, especially as Ofgem’s new price cap takes effect.
What the Warm Home Discount Is
The Warm Home Discount is a Government-backed payment designed to help households on low incomes with winter energy costs. It is applied as a £150 credit to electricity bills – not cash – between November 2025 and March 2026.
In England and Wales, most eligible customers will receive the discount automatically, while some may be asked to provide additional information. Letters explain which group you fall into and whether you must contact the helpline by 27 February 2026 to confirm details.
If you live in Scotland, you may need to apply directly through your energy supplier. Scottish customers fall into two categories – a “core group”, which receives the payment automatically, and a “broader group”, which must submit an application before the supplier’s deadline.
Who Qualifies This Year
The DWP confirmed the eligibility date as 24 August 2025. To qualify, you must have been claiming at least one of the following means-tested benefits on that date:
- Guaranteed Credit element of Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Housing Benefit
- Universal Credit
- The Savings Credit part of Pension Credit
This year’s rule changes remove the “hard-to-heat” home requirement in England and Wales, meaning 2.7 million additional households – including around 900,000 families with children – will now receive the payment.
Backdating Could Secure Extra Cash
Even if you weren’t claiming Pension Credit or another qualifying benefit on the August date, it may still be possible to receive the discount. Some benefits allow backdated claims.
For example:
- Pension Credit claims can be backdated by up to three months.
- Universal Credit can be backdated by one month in specific cases.
Thousands of pensioners are still missing out on Pension Credit, which not only boosts income but also unlocks other help such as free TV licences and Cold Weather Payments.
How the £150 Will Be Paid
If you qualify, your energy supplier will automatically apply the £150 credit to your electricity account by 31 March 2026. You don’t need to do anything unless your letter specifically asks for more information.
Households in Scotland applying through the broader group should check deadlines on their supplier’s website, as places can fill quickly.
Other Help Still Available
In addition to the Warm Home Discount, several other forms of support remain open to households this winter.
Cold Weather Payments
If average temperatures remain at or below 0 °C for seven consecutive days, you’ll automatically receive £25 per week of extreme cold through your benefit payment system.
Winter Fuel Payment
Most pensioners will again receive between £100 and £300 to help with heating costs. The DWP will send letters confirming amounts between October and December.
Priority Services Register
Energy suppliers operate the Priority Services Register (PSR) for vulnerable customers, offering extra help such as advance outage notices and free safety checks. Contact your supplier to join if you’re elderly, disabled or reliant on medical equipment.
Check Your Tariff to Maximise Savings
Government help is only one part of the picture. Energy bills still depend heavily on which tariff you’re on and how efficiently you use energy.
Many households could reduce costs by reviewing their supplier or switching plan. Using tools like the energy bill calculator helps estimate what you currently pay and how much cheaper deals could save across a full year.
For customers on prepayment meter tariffs, checking regularly is especially important. Prepayment users often face higher standing charges and unit rates, meaning even small savings from switching can make a significant difference over winter.
Those paying by direct debit can also benefit by comparing fixed or variable tariffs through independent services that show all available suppliers. Taking a few minutes to compare energy prices can reveal whether your current deal is competitive or due for review.
Why Comparing Matters More Than Ever
Although Ofgem’s October price cap increase was modest, it still raised annual bills by around £35 for the average household. Standing charges remain at record highs, and future policy costs could push prices up again next spring.
Analysts say comparing tariffs and checking usage now could save more than the Warm Home Discount itself, particularly for dual-fuel customers who combine both gas and electricity under one supplier.
By calculating your average consumption and switching where possible, you can lock in lower unit rates before further price changes arrive in 2026.
Step-by-Step: What to Do If You Haven’t Had a Letter
- Wait until early January 2026. The DWP expects all letters to arrive by then.
- If nothing arrives, call the helpline on 0800 030 9322.
- Check your benefits – you must have received one of the qualifying payments on 24 August 2025 to be eligible.
- Keep your supplier updated if you’ve moved house or switched energy provider since August.
If you live in Scotland, visit your supplier’s website to see if you must apply manually.
Take Control Before Winter Peaks
Energy usage typically rises by 50 per cent between October and January as heating demand grows. For families on limited budgets, early preparation is key.
Experts recommend checking tariffs, applying for support schemes and improving energy efficiency before cold weather hits hardest.
Households that combine government help with smarter energy habits and better-value tariffs could see meaningful reductions in winter bills.
