DWP to Give People on Six Benefits a Free £150 Payment in October

With rising energy bills and increasing pressure on household budgets, the UK government has stepped in to help more families.

The Department for Work and Pensions (DWP) has announced that the £150 Warm Home Discount will now cover almost three million additional households this winter.

This means that an extra 2.7 million families could see money taken off their electricity bills automatically.

However, there is one important condition: the bill must be in the name of the claimant or their partner/legal representative to qualify.

This expansion aims to protect vulnerable groups, including pensioners, low-income families, and people receiving certain means-tested benefits, from the financial burden of heating homes during colder months.

What Is the Warm Home Discount?

The Warm Home Discount is a one-off rebate of £150 applied directly to electricity bills.

Instead of receiving cash, households see the discount reflected in their energy account, helping them to manage heating and lighting costs during winter.

The scheme has been running for several years, but the government has now decided to widen eligibility so more families can benefit from extra financial support.

Key facts about the Warm Home Discount:

• Worth £150 off your electricity bill.
• Given once per year, usually between October and March.
• Applied automatically if you qualify – no separate application needed for most.
• Aimed at households on low incomes or certain benefits.

Who Is Eligible for the £150 Warm Home Discount?

The government has linked the Warm Home Discount to specific means-tested DWP benefits. To qualify automatically, you (or your partner/legal representative) must be named on the electricity bill.

The Eligible Benefits Include

• Housing Benefit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Income Support
• Pension Credit – both Guarantee Credit and Savings Credit
• Universal Credit

This means that millions of low-income households, including working-age claimants and pensioners, will now be able to access the discount without needing to apply separately.

How the Scheme Works in England and Wales

In England and Wales, households that receive any of the above qualifying benefits will automatically become eligible. The £150 discount is credited directly to the electricity account of the eligible customer.

Energy providers and the DWP share data securely to identify qualifying households.

This means that if you meet the conditions, you don’t need to fill out any forms or apply – the system ensures you receive the discount automatically.

How the Scheme Works in Scotland

In Scotland, the rules are slightly different, particularly for pensioners.

If you receive Pension Credit Guarantee Credit, and your name, your partner’s name, or your legal representative’s name is listed on the electricity bill, you will likely qualify automatically.

This ensures that older people – who are often most vulnerable to rising heating costs – continue to get support without complicated applications.

Why the Expansion Matters

Energy prices have been a major concern across the UK in recent years.

Even though energy caps have been adjusted, many families are still struggling with higher bills compared to pre-pandemic times.

The extra 2.7 million households that will now qualify for the Warm Home Discount are likely to include families with children, pensioners living on fixed incomes, and individuals relying on benefits due to health conditions.

This expansion:

• Helps reduce fuel poverty.
• Ensures households can afford heating during winter.
• Provides extra support for people already receiving DWP benefits.

How Will the Discount Be Applied?

• The £150 Warm Home Discount is not a cash payment. Instead, it is applied directly to your electricity account as a credit.
• Households with prepayment meters may receive vouchers or automatic top-ups, depending on the energy supplier.
• The discount usually appears between October and March, giving relief during the coldest months.

If you qualify, your supplier should inform you in writing.

Do You Need to Apply?

In most cases, you don’t need to apply. The system is designed to identify eligible households automatically through data sharing between the DWP and energy suppliers.

However, if you believe you qualify but haven’t been contacted, it’s important to:

1. Check with your energy supplier.
2. Ensure your benefit details and billing name are correct.
3. Contact the DWP or your energy provider if you think there’s been a mistake.

Common Reasons for Missing Out

Even if you receive one of the listed benefits, there are situations where you may not qualify automatically:

• If the bill is not in your name or your partner’s/legal representative’s name.
• If your energy supplier is not part of the Warm Home Discount scheme (most major suppliers are included, but some smaller providers may not be).
• If your benefit claim is not updated or processed in time for the eligibility check.

The Warm Home Discount expansion is a welcome relief for millions of UK households. With 2.7 million more families now eligible, this government initiative will provide vital financial support during winter.

By targeting households on means-tested benefits, the scheme ensures help goes to those most in need.

For households in England and Wales, eligibility covers a broad range of benefits, while in Scotland, pensioners remain the key group receiving automatic payments.

Regardless of region, the key factor remains the same – your name must be on the electricity bill.

This move highlights the government’s effort to reduce fuel poverty, protect vulnerable households, and make sure people can keep warm without the constant worry of rising energy bills.

Frequently Asked Questions