The government has confirmed that the Warm Home Discount will continue until at least March 2026, covering a further three winters including the one coming up, according to the British Gas Energy Trust1. The scheme, now in its thirteenth year, provides a one-off £150 payment to people on low incomes and those susceptible to cold-related illnesses, delivered through energy companies rather than paid directly1.
The threshold at which energy suppliers must take part has also been lowered. Previously only suppliers with 50,000 customers or more had to sign up; from this year that number was reduced to 1,000 or more, meaning more customers could benefit1.
"with the government also confirming the scheme will run until at least March 2026, a further three winters, including this one coming up."
Eligibility differs by nation. In England and Wales, households qualify if they receive the Guarantee Credit element of Pension Credit, or are on a low income with high energy costs1. In Scotland, the Guarantee Credit route still applies, but other households may have to meet their own supplier's specific criteria1.
| Nation | Main eligibility routes |
|---|---|
| England and Wales | Guarantee Credit element of Pension Credit, or low income with high energy costs |
| Scotland | Guarantee Credit element of Pension Credit, or supplier's own criteria |
Source: British Gas Energy Trust1
The discount is applied automatically and cannot be applied for1. The money is not paid to the household but taken off the electricity bill between October and March1. Households on prepayment or pay-as-you-go meters may still be eligible; instead of a credit on the bill, the supplier provides vouchers to top up the meter, which are likely to need to be used by a certain time1. Eligible households should receive a letter, likely before January, and those who believe they should have had one can contact the Warm Home Discount helpline on 0800 107 80021.
Why it matters for households
The £150 is a fixed reduction on an electricity bill rather than a payment into a bank account, so it lowers the amount owed over the winter months rather than adding to household income1. Because it is applied automatically, eligibility depends on being identified through benefit records or a supplier's own criteria rather than on any application1. For prepayment meter households, the support arrives as vouchers that must be used within a set period, so the timing of the letter matters as much as the amount1. The confirmation of funding to at least March 2026 gives three winters of certainty for households that qualify, and the lower supplier threshold brings more, smaller suppliers into the scheme1. How the discount compares with other support, such as the Winter Fuel Payment or a social tariff, is set out in the site's guides to the Warm Home Discount, who qualifies and how to claim it.
What happens next
Eligible households should receive a letter about the discount in the coming months and likely before January1. The discount is applied to electricity bills between October and March1. The scheme is confirmed to run until at least March 20261.
Sources1 cited
- Warm Home Discount Scheme Extended to More Customers | British Gas Energy Trust, britishgasenergytrust.org.uk