Expanded Warm Home Discount Scheme Set to Assist Millions More in Reducing Their Electricity Bills by £150
The Warm Home Discount Scheme, a government initiative launched in 2011 to help low-income families and vulnerable people manage their energy bills, is set to expand its eligibility criteria for the 2025/26 payment schedule. This move aims to support nearly three million more households, according to recent announcements.
Eligible customers for the Warm Home Discount Scheme will receive the £150 discount automatically on their electricity bills between October and March, as has been the case in previous years for households where you or your partner receive the 'guarantee element' of Pension Credit. However, this year, the eligibility criteria have been expanded to include more households on means-tested benefits such as Universal Credit, Income Support, Jobseeker's Allowance (Income-based), Income-related Employment and Support Allowance, Housing Benefit, and Pension Credit (note: broader group, different from Guarantee Credit).
For those falling under the broader group, an application will be required. Applications are accepted on a first-come, first-served basis as the fund is limited. It is crucial to apply early to secure the discount, as some suppliers close applications once the pot is full.
Eligibility for the Warm Home Discount Scheme is also extended to households on a low income and meeting their energy supplier's criteria for the scheme, or having high energy costs. Households receiving the Guarantee Credit element of Pension Credit are now included in the automatic eligibility group.
Additionally, households on prepayment meters can still qualify for the Warm Home Discount Scheme. If your energy supplier offers both gas and electricity, you may be able to receive the discount on your gas bill instead.
The scheme offers a yearly one-off payment off eligible households' electricity bills, which increased from £140 to £150 in winter 2022. To qualify, your energy provider must be part of the scheme. The full list of available suppliers can be found on the government's website.
In a bid to support households struggling with unmanageable energy debts, Ofgem has proposed a Debt Relief Scheme. Meanwhile, energy price cap protections are in place to ensure fair pricing for consumers.
Heat pump grants are available across the UK to help with the cost of installing energy-efficient heating systems. The Energy Company Obligation (ECO4) scheme continues to support households in making free energy-efficient home improvements.
For more information about the 2025/26 Warm Home Discount Scheme, visit the government's official website or contact your energy provider.
- To receive the Warm Home Discount Scheme's £150 discount on electricity bills, eligible customers must meet specified criteria, such as receiving the 'guarantee element' of Pension Credit, Universal Credit, Income Support, Jobseeker's Allowance (Income-based), Income-related Employment and Support Allowance, Housing Benefit, or Pension Credit (not the Guarantee Credit).
- Households that satisfy their energy supplier's criteria for the Warm Home Discount Scheme or have high energy costs, while not receiving the Guarantee Credit element of Pension Credit, can also gain eligibility.
- Applicants from the broader eligibility group must submit an application for the Warm Home Discount Scheme, as funds are limited and allocated on a first-come, first-served basis.
- Interested households that have prepayment meters can still qualify for the Warm Home Discount Scheme, and in some cases, can receive the £150 discount on their gas bill instead of electricity.
- The Warm Home Discount Scheme provides a one-off annual payment to eligible households' electricity bills, with the energy supplier playing a crucial role in determining eligibility.
- Households striving to lower their energy costs can explore options such as applying for heat pump grants or taking advantage of the Energy Company Obligation (ECO4) scheme, which helps finance energy-efficient home improvements.
