£150 Warm Home Discount: Millions Get First-Ever Cost-of-Living Boost
First-ever £150 Warm Home Discount for UK households

Millions to Receive First-Ever Winter Energy Payment

For the first time, millions of households across Britain are waking up to welcome news of a £150 cost-of-living bonus. The government's Warm Home Discount scheme has been significantly expanded this winter, reaching many families who have never previously qualified for this vital support.

The expansion means approximately six million households will benefit from the one-time £150 reduction on their energy bills during the colder months. This represents one of the most substantial widenings of the scheme since its inception.

New Eligibility Rules Bring Hope to More Families

Following the scheme's extension by Labour, new eligibility criteria have been introduced that will make a significant difference to struggling families. Under the updated rules, everyone claiming Universal Credit will now qualify for the discount, alongside those receiving Housing Benefit, Income Support, and Employment and Support Allowance (ESA).

This marks a crucial change from previous years when only some households receiving these benefits could access the support. The application window runs from November until the end of the year, giving eligible households ample time to claim their discount.

Low-income pensioners receiving the Guarantee Credit element of Pension Credit will continue to receive automatic support, maintaining the safety net that has protected this vulnerable group in previous winters.

How and When You'll Receive Your Payment

British Gas has confirmed the practical details of how customers will receive their discount. Those who qualify for the winter 2025/26 payment will have their one-off £150 discount applied between November 2025 and March 31, 2026, with most customers expected to receive their Warm Home Discount before January 2026.

The method of payment depends on how customers settle their energy bills:

  • For standard customers, the discount will be added directly to electricity accounts as credit
  • Pay-as-you-go customers will receive a voucher to top up their meter at a Post Office
  • Smart meter customers on pay-as-you-go tariffs will have the credit sent directly to their meter

The government has emphasised that extending the Warm Home Discount represents a key part of its strategy to help vulnerable households manage high energy costs during what promises to be another challenging winter for family budgets.