Millions of UK families are set to receive a welcome cost of living boost this winter as the government has officially approved an expanded Warm Home Discount scheme for 2025.
The updated benefit will now cover six million households, providing £150 off energy bills to support families battling high Cost Of Living and rising utility prices.
The announcement marks a significant expansion of eligibility, ensuring that more people receiving Universal Credit and Employment and Support Allowance (ESA) can now benefit from the scheme — even if they don’t meet the previously strict energy cost criteria.
What Is the Warm Home Discount?
The Warm Home Discount is a government-backed scheme that provides a £150 reduction on electricity bills during the colder months. Rather than a cash payment, the discount is automatically applied to qualifying households’ bills, helping them save money on energy costs.
Originally introduced to support low-income pensioners and high-energy-use households, the scheme has now been broadened to benefit a wider range of claimants amid rising living expenses.
What’s New in 2025?
The government has scrapped the restrictive “high energy cost” rule, which previously limited eligibility for many Universal Credit and ESA recipients. Now, all eligible households on means-tested benefits will qualify, regardless of their energy usage profile.
Key Highlights of the 2025 Update:
- 6 million households now eligible
- Covers 1 in 5 UK families
- £150 discount applied automatically from October 2025
- No need to apply manually – eligibility determined through government and energy supplier data
- Expands to Universal Credit and ESA recipients without the “high energy usage” test
This move follows strong advocacy from financial experts and consumer champions who argued that the previous rules were unfair and inconsistent.
Who Is Eligible for the £150 Cost of Living Support?
The eligibility for the Warm Home Discount in 2025 is based on the benefits you receive and your household income.
Eligibility for Warm Home Discount 2025
| Criteria | Eligible? | Details |
|---|---|---|
| Low-income pensioners | Yes | Receiving Pension Credit Guaranteed Credit |
| Universal Credit recipients | Yes | No energy cost test required |
| Employment and Support Allowance (ESA) | Yes | Regardless of energy usage profile |
| Income-based Jobseeker’s Allowance (JSA) | Yes | Must be income-based |
| Housing Benefit recipients | Yes | Means-tested |
| Support for Mortgage Interest (SMI) claimants | Yes | Newly included if on means-tested benefits |
| Non-means tested benefit claimants | No | Not eligible unless other qualifying criteria are met |
- The discount is automatically credited to your electricity bill if your energy provider participates in the scheme.
How the £150 Payment Works
Unlike direct cash transfers, the Warm Home Discount is applied directly to energy bills between October 2025 and March 2026. Eligible households do not need to apply, as the Department for Work and Pensions (DWP) shares data with energy suppliers to identify qualified recipients.
How It Helps:
- Reduces winter energy costs by £150
- Frees up household income for other essentials
- Helps pensioners and low-income families during the coldest months
- Prevents debt buildup with utility companies
Why This Expansion Matters
Experts have long criticized the previous eligibility model, which required households to meet a “high energy cost” test. This rule excluded many working families who lived in more energy-efficient homes but still struggled with bills.
According to consumer finance expert Martin Lewis, the change is “long overdue” and removes a major barrier for low-income households.
By simplifying access and expanding coverage, the government is responding to ongoing pressure to ease the financial burden for millions struggling with rising inflation, food prices, and housing costs.
How to Check If Your Household Is Included
You’ll receive a letter from the DWP or your energy supplier between September and October 2025, informing you about your eligibility and how the discount will be applied.
Steps to Confirm:
- Check your eligibility on gov.uk/warm-home-discount
- Wait for the confirmation letter from your supplier or DWP
- Ensure your energy account details are accurate (name, address, and supplier info)
- The discount will be applied automatically — no need to contact your supplier unless advised
If you believe you should be eligible but don’t receive notification, you can contact your energy supplier’s Warm Home Discount team.
The Warm Home Discount expansion in 2025 is a critical lifeline for millions of households facing the squeeze of rising bills and inflation. With six million families set to receive £150 off their energy costs, this updated cost of living payment provides timely, targeted support for those who need it most.
If your household receives means-tested benefits, you may already be eligible. Check your supplier, monitor official communications, and prepare to see the discount reflected on your bill from October 2025. This simple but impactful measure could be the difference between comfort and hardship during the winter months.
FAQs
Do I need to apply for the Warm Home Discount?
No. If you’re eligible, the discount will be applied automatically to your electricity bill.
Can I receive the discount if I use a prepayment meter?
Yes. If eligible, you’ll receive a voucher or automatic credit depending on your supplier.
What if my energy provider isn’t part of the scheme?
Not all providers participate. You’ll need to switch to a participating supplier to receive the benefit