When expanded Warm Home Discount Scheme opens for 2025 as 6 million now get £150

In a significant expansion of the Warm Home Discount scheme, an additional 2.7 million households are set to receive a £150 payment to assist with energy costs, bringing the total number of beneficiaries to more than six million after a consultation, as confirmed by the Department for Energy Security and Net Zero (DESNZ) earlier this week. The eligibility criteria have been broadened, with all those on means-tested benefits qualifying in 2025.

Prime Minister Keir Starmer said: "I know families are still struggling with the cost of living, and I know the fear that comes with not being able to afford your next bill.

"Providing security and peace of mind for working people is deeply personal to me as Prime Minister and foundational for the Plan for Change."

Starmer also expressed confidence that the extension of the £150 energy bills support to millions more families would be as impactful as "I have no doubt that, like rolling out free school meals, breakfast clubs and childcare support, extending this £150 energy bills support to millions more families will make a real difference."

Energy Secretary Ed Miliband echoed the sentiment, stating: "Millions of families will get vital support with the cost of living this coming winter, demonstrating this government's commitment to put money in people's pockets through our Plan for Change."

However, the Conservatives have voiced criticism of the initiative, pointing out that energy prices are expected to continue rising.

Andrew Bowie, the acting shadow energy secretary, said: "Labour promised to cut everyone's energy bills by £300 but they have increased by £280 and are forecast to keep going up.

"Energy bills need to come down but this announcement will cut bills for just a quarter of households whilst increasing them for everyone else.

"Kemi Badenoch and I have been clear that net zero by 2050 is impossible without bankrupting Britain and making hard-working families worse off."

Fiona Peake, personal finance expert at Ocean Finance, reacted to the news: "Energy bills are still painfully high, so an automatic £150 saving is very welcome. We speak to people who are doing everything they can to stay on top of rising bills, so knowing this support is coming could help take some pressure off.

"Even with prices falling this summer, the typical annual energy bill is still around £600 more than it was in 2020. The current price cap means the average home pays £1,720 a year, but this could rise again from October due to higher global gas and oil prices.

"Previously, the discount was only available to those on means-tested benefits living in energy-inefficient homes. But that rule's been scrapped, opening up support to many more on low incomes.

"The government has also reversed plans to restrict the Winter Fuel Payment. Most pensioners earning under £35,000 will now receive the full payment, which could make a big difference this winter.

"If you're in England or Wales, you don't need to apply - the £150 will be taken straight off your electricity bill between October and March.

"But if you use a prepayment meter, you might get a voucher instead, so keep an eye on your post or email. And if you're in Scotland, you may still need to apply, so check with your supplier just to be sure. Contact your supplier from October if you think you qualify, but do not see the discount."

2025 Warm Home Discount Scheme

The Warm Home Discount Scheme is set to resume in October 2025, offering a one-time £150 concession on your electricity bill.

For those who qualify, electricity suppliers will apply the discount directly to the bill, as the funds won't be handed over to people directly.

You'll receive the discount if you're on a means-tested benefit, including:

• Universal Credit
• Pension Credit
• Income Support
• Income-based Jobseeker's Allowance
• Income-related Employment and Support Allowance
• Housing Benefit
• Child Tax Credit
• Working Tax Credit

The discount typically applies automatically to eligible parties; however, low-income earners in Scotland must apply- contact your energy supplier for the application process.

Should you receive both gas and electricity from the same supplier and meet the eligibility criteria, you might also obtain the discount on your gas bill. Contact your provider to confirm the details.