Thousands of households across Britain are set to receive a welcome financial boost this month, as a £150 energy bill credit starts landing in accounts. The support comes via the government's Warm Home Discount scheme, administered by energy suppliers.
Who Qualifies for the £150 Payment?
The payment, which is applied directly as credit to a customer's electricity account, is targeted at those on low incomes. To qualify for this winter, you or someone in your household must have been claiming one of several specific benefits on August 24, 2025.
The qualifying benefits include:
- Guaranteed credit element of Pension Credit
- Income Support
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
- Housing Benefit
- Universal Credit
- The "Savings Credit" part of Pension Credit
How and When Will You Get the Money?
Energy supplier Utilita began distributing the £150 Warm Home Discount to its eligible smart prepay customers on January 7, with plans to complete all payments by the end of the month. The process differs depending on where you live.
If you live in England or Wales and receive one of the qualifying benefits, the payment should be made automatically. In Scotland, the payment is only automatic for those receiving the Guarantee Credit element of Pension Credit. For other eligible Scottish claimants, a manual application to your energy supplier is required. There is no Warm Home Discount scheme in Northern Ireland.
Major Expansion of the Scheme
The Department for Energy Security and Net Zero (DESNZ) has confirmed a significant change to the scheme's rules in England and Wales. Previously, for most benefits (excluding Pension Credit), claimants had to demonstrate they had high energy costs. This high energy use criteria has now been removed.
This rule change is expected to dramatically increase the number of households receiving support. DESNZ estimates the total number of beneficiaries could rise by 2.7 million, reaching an estimated 6.1 million households this winter.
The financial support arrives at a critical time, as the energy regulator Ofgem's price cap has just increased. From January, the typical annual bill for a dual-fuel household paying by direct debit has risen from £1,755 to £1,758. It is crucial to remember that the price cap limits the cost per unit of energy and daily standing charges, not your total bill, which depends on your actual consumption.
