Prime Minister Keir Starmer has confirmed that six million households will receive a £150 cost-of-living boost later this year. The Warm Home Discount scheme has been extended to include more families, offering a one-time discount on energy bills during winter.
Who Qualifies for the £150 Payment?
The discount is available to approximately six million households for winter 2026/27. This now includes everyone who claims Universal Credit, whereas previously only some of these households were eligible. Low-income pensioners receiving the Guarantee Credit part of Pension Credit also qualify. Other qualifying benefits include Housing Benefit, Employment and Support Allowance, and Income Support.
How the Discount Works
The £150 discount is applied directly to energy bills, typically between November and January. Energy suppliers will credit the amount to customers' accounts or provide top-up vouchers, depending on how they pay their bills. This helps ease the financial burden during the coldest months.
Political Context
Starmer announced the extension amid significant pressure following poor local election results. In a recent speech, he stated: "We're taking £150 off energy bills. That's £300 for the six million poorest families. That's the difference a Labour Government makes." He acknowledged the need to demonstrate tangible improvements to the lives of low-income families.
The Prime Minister is fighting for his political survival after a disastrous set of local elections, and this measure is part of his effort to show commitment to supporting vulnerable households.
