Millions of low-income households in the UK may lose their £150 Warm Home Discount payment after 2025, as the current scheme is set to end in March 2026. The scheme, which helps struggling households with energy costs, is under review, and its future remains uncertain.
£150 Warm Home Discount Payment
The Warm Home Discount Scheme provides eligible households with a £150 discount on their electricity bill, paid directly to their energy supplier.
The initiative, which started in 2011, has already provided over £4 billion in financial support to vulnerable families.
For the 2024/25 winter period, more than three million households are expected to benefit. However, with energy costs still high, many are concerned about what will happen once the scheme ends. Energy Minister Miatta Fahnbulleh has confirmed that a consultation on the scheme’s future will take place later in 2024.
Eligibility
Not everyone qualifies for the Warm Home Discount. The eligibility criteria were revised in 2022, making it harder for some to receive support. To qualify for the discount, claimants must meet the following conditions:
- Be receiving certain means-tested benefits such as Pension Credit or Tax Credits
- Have high energy costs based on their home’s characteristics (assessed by the Department for Work and Pensions)
- Apply through a participating energy supplier
Households receiving Pension Credit automatically qualify, while others need to check their eligibility and apply accordingly.
Payment
Unlike direct cash payments, the £150 discount is applied directly to a claimant’s energy account. If you’re a Pay As You Go or Prepayment customer, you will receive a voucher to top up your meter.
Some households may also use the discount for their gas bill if their supplier provides both gas and electricity. Contact your supplier to confirm this option.
Energy
Over 25 energy suppliers participate in the Warm Home Discount Scheme. If you’re unsure whether your provider is included, you can check on their official website or the GOV.UK Warm Home Discount page.
Here are some of the major participating suppliers:
- British Gas
- Octopus Energy
- EDF
- E.ON Next
- ScottishPower
- Shell Energy
- OVO Energy
- Utilita
- Utility Warehouse
Smaller suppliers also take part, so it’s essential to verify with your provider before applying.
As of now, the government has not confirmed whether the Warm Home Discount will continue beyond March 2026. The upcoming consultation will determine whether the scheme is extended, revised, or replaced with a new support programme.
With energy prices still high, millions of low-income families rely on this discount to manage their bills. If the scheme ends without a suitable replacement, many could struggle to afford basic heating and electricity.
If you qualify for the Warm Home Discount, it’s crucial to apply as soon as applications open. Keep an eye on updates from your energy provider and the government regarding any future changes.
