Millions of households across the UK are set to receive a vital financial boost this January, with a one-off £150 discount applied directly to their energy bills. The Warm Home Discount scheme has been expanded for the winter, making more people than ever before eligible for the crucial support.
Who Qualifies for the £150 Payment?
For the first time, everyone receiving Universal Credit will be eligible for the Warm Home Discount, provided they meet other criteria set by their energy supplier. This marks a significant expansion of the support scheme.
The full list of qualifying benefits includes:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Income Support
- the ‘Savings Credit’ part of Pension Credit
- Universal Credit
Additionally, low-income pensioners who receive the Guarantee Credit element of Pension Credit are also eligible for the support.
How and When Will the Discount Be Applied?
The £150 support is not a cash payment. Instead, it is issued as a one-off credit directly to your energy account or as a top-up voucher for those on prepayment meters. The exact timing of the discount is decided by individual energy companies.
Most households will see the discount applied between November and the end of January. British Gas has stated that for the winter 2025/26 scheme, the one-off discount will be applied between November 2025 and March 31, 2026 at the latest, with most customers receiving it before January 2026.
A Critical Cost-of-Living Boost
This expansion of the Warm Home Discount scheme comes as a direct response to the ongoing cost-of-living pressures facing households. The £150 reduction on energy bills provides a much-needed financial respite during the coldest and most expensive months of the year.
The government-backed initiative is designed to target support at those most vulnerable to high energy costs. With energy bills remaining significantly higher than pre-crisis levels, this discount offers tangible help for budgets that are stretched thin.
Eligible individuals do not need to apply for the scheme; they should be identified and notified automatically by their energy supplier if they are part of the 'Core Group' qualifying through the benefits listed. Those in the 'Broader Group' may need to apply directly to their supplier, so checking with your energy company is advised.
