Ashley Harbor
Millions of Universal Credit (UC) claimants will receive a £150 one-off discount on their energy bills starting October 2025, following a significant rule change announced by the UK Government.
This update to the Warm Home Discount (WHD) scheme aims to ease the financial burden on low-income households during the colder months.
Previously, many Universal Credit recipients were excluded from this benefit due to strict eligibility criteria.
However, in a shift designed to provide broader relief, all UC claimants will now be eligible, adding approximately 2.7 million households to the scheme.
What Is the Warm Home Discount?
The Warm Home Discount is a government-run initiative that offers a £150 discount on electricity bills for qualifying households.
This is not a cash payment, but it is applied directly to energy bills, delivering equivalent savings during winter.
This change comes amid ongoing concerns about soaring energy costs, especially for low-income families and pensioners, who are often hit hardest by seasonal energy demand.
Who Is Now Eligible for the £150 Discount?
The new eligibility criteria now include:
- All Universal Credit claimants
- Low-income pensioners receiving the Guarantee Credit element of Pension Credit
- Households on certain means-tested benefits
The total number of households expected to benefit from the scheme has risen to nearly six million.
Government Response to Energy Costs
Energy Secretary Ed Miliband highlighted the urgency of the situation, stating:
“Families up and down the country are struggling with energy bills that are just too high… An extra 2.7 million households will now receive £150 off their energy bills this winter.”
This change reflects growing government pressure to offer cost-of-living support to those who previously fell through the cracks.
How and When Will the Payment Be Applied?
The £150 discount will be automatically applied to eligible households’ energy accounts between October and March.
There’s no need to apply for the payment if you’re eligible; energy suppliers will process the discount on behalf of the Government.
Key Details of the £150 One-Off Payment
| Detail | Information |
|---|---|
| Payment Type | One-off discount on energy bills |
| Amount | £150 |
| Who Qualifies? | All Universal Credit claimants, Pension Credit recipients |
| How It’s Applied | Automatically through energy supplier |
| When It’s Given | October 2025 – March 2026 |
| Households Benefiting | Up to 6 million |
| Newly Added Households | 2.7 million UC claimants |
Why This Matters
This expanded Warm Home Discount scheme comes at a time when energy prices remain a significant challenge for many families.
For some, a £150 reduction could mean choosing between heating and other essentials. With universal eligibility for UC recipients, the Government aims to close previous gaps and deliver a more inclusive safety net.
The expansion of the Warm Home Discount scheme marks a welcome change for millions of Universal Credit claimants, who will now receive £150 off their energy bills from October 2025.
With the cost-of-living crisis continuing to impact vulnerable households, this change brings much-needed financial relief ahead of the winter season.
This reform shows a renewed governmental commitment to inclusive support, ensuring no family is left in the cold.
FAQs
Do I need to apply for the £150 Warm Home Discount?
No, eligible households will automatically receive the discount through their energy supplier. There is no need to apply.
Will this be a cash payment?
No, the £150 is a one-off discount applied to your electricity bill, not direct cash.
Can I receive the discount if I’m on Pension Credit?
Yes, low-income pensioners on Pension Credit (Guarantee Credit) are automatically eligible for the discount.