Thousands of low-income pensioners across the UK are receiving a welcome new year financial boost in the form of a one-off £150 payment to help with energy costs.
Who Qualifies for the Warm Home Discount?
The crucial support comes via the Warm Home Discount (WHD) scheme. The primary group eligible for the £150 discount are state pensioners who receive the Guarantee Credit element of Pension Credit. This targets some of the poorest pensioner households.
For the winter 2025/26 period, the scheme has been significantly expanded. Everyone claiming Universal Credit will now qualify for the WHD, a major change from previous years when only some claimants were eligible.
Other benefits that can make someone eligible include Housing Benefit, Income Support, and Employment and Support Allowance (ESA).
How and When Are Payments Made?
The discount is not a direct cash payment. Instead, energy suppliers apply the one-off £150 reduction directly to the energy accounts of qualifying customers. For those on prepayment meters, the discount is typically provided via a top-up voucher.
According to British Gas, the application window for the 2025/26 winter payment runs from November 2025 until 31 March 2026. The company states that most eligible customers should have received their discount before January 2026, but some may see it applied during this month.
A Vital Cost of Living Support
This intervention provides critical savings at the start of the year, a time when energy usage is often high due to cold weather. The scheme is administered directly by energy companies, meaning eligible households do not need to apply; the discount should be applied automatically.
This expansion of the Warm Home Discount, particularly to all Universal Credit claimants, represents a significant widening of the safety net for vulnerable households struggling with high energy bills.
