Chancellor Rachel Reeves has announced a significant expansion of a key cost-of-living support scheme, confirming that millions more households will receive a £150 boost to help with energy bills this winter.
Universal Credit Rule Change Opens Support to Millions
In a major policy shift, the Labour government has decided to extend the Warm Home Discount scheme. The most crucial change is that every household receiving Universal Credit will now qualify for the one-off £150 discount. Previously, only some claimants under the benefit were eligible, meaning the new rules will open up vital support to a far wider group of people struggling with high energy costs.
Chancellor Reeves confirmed the extension at the Budget, framing it as essential support for families during the coldest months. The discount is applied directly to energy accounts for those on standard tariffs or provided as a top-up voucher for prepayment meter customers.
When and How Will Households Receive the Payment?
The £150 payment is a single discount for the winter 2025/26 period. Energy suppliers are responsible for applying the credit or issuing vouchers to eligible customers between November 2025 and 31 March 2026.
Major supplier British Gas has indicated that most of its eligible customers should have already received their discount, stating: "Most customers receiving their WHD before January 2026." However, the window for application remains open until the end of March for those who qualify.
Alongside low-income families on Universal Credit, pensioners receiving the Guarantee Credit element of Pension Credit also remain eligible for the scheme, ensuring continued support for some of the most vulnerable.
Further Bill Relief Confirmed for April
In a double announcement for household finances, Rachel Reeves also confirmed separate measures coming into effect in the spring. The government will change the way energy customers are charged, a move that is expected to cut the average household bill by a further £150 from April.
This combination of immediate winter support and promised future reductions aims to provide a sustained financial buffer for families across the UK. The expansion of the Warm Home Discount underscores the government's focus on targeted support for those on the lowest incomes during the ongoing cost-of-living challenges.
