The Department for Work and Pensions (DWP) has started sending out letters to households eligible for the 2025/26 Warm Home Discount scheme. These letters, which began going out from October 20, 2025, will continue to be delivered until early January 2026. They will confirm whether residents are entitled to the £150 energy bill discount and explain how it will be applied.
How the Discount Works
Unlike direct cash payments, the £150 Warm Home Discount is applied through energy suppliers. The government provides the funding to suppliers, who then credit customers’ electricity accounts. For households using prepayment meters, the discount may be given in the form of a top-up voucher. The support is applied once a year between October and March, helping families manage rising energy costs during the colder months.
What the Warm Home Discount Is
The Warm Home Discount is a one-off reduction of £150 on electricity bills for qualifying households. In some cases, if your supplier provides both gas and electricity, the discount may be applied to your gas account instead. Importantly, this scheme does not affect other benefits such as the Winter Fuel Payment or the Cold Weather Payment.
Who Qualifies for the £150?
Eligibility depends on several factors, including income level, benefits received, and the type of property you live in. In England and Wales, you automatically qualify if you receive the Guarantee Credit portion of Pension Credit. You may also qualify if you are on a low income and have high energy costs. The scheme also applies to people with prepayment or pay-as-you-go meters, although they will usually receive vouchers instead of a direct credit.
Benefits Linked to Eligibility
Households can fall under what is known as ‘core group 2’ if, on August 11, 2024, they were with a participating energy supplier, received certain means-tested benefits or tax credits, had a high energy cost score, and were listed on the electricity bill. The benefits that may qualify you include Housing Benefit, Income Support, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance (JSA), Pension Credit (Savings Credit), Universal Credit, Child Tax Credit, or Working Tax Credit.
What the Letter Will Say
The DWP letter will confirm whether the discount is being applied automatically or if you need to provide further details. In cases where extra information is required, the letter will ask you to contact the Warm Home Discount helpline before February 28, 2026, to secure your entitlement. For those eligible, energy suppliers are expected to apply the discount by March 31, 2026.
Energy Providers in the Scheme
Most major suppliers and many smaller companies are part of the Warm Home Discount program. Providers such as British Gas, EDF, E.ON Next, OVO Energy, Octopus Energy, and ScottishPower are legally required to participate if they have more than 1,000 customers. Several smaller providers, including Ecotricity, Good Energy, and Utility Warehouse, also offer the discount voluntarily. If your supplier is not part of the scheme, you will not be able to claim the discount.
What to Do If You Don’t Receive a Letter
If you believe you are eligible but have not received a letter by mid-January 2026, you should call the Warm Home Discount helpline at 0800 030 9322 or use the GOV.UK eligibility checker. Contacting your energy supplier directly can also help confirm whether you qualify for the scheme.