Warm Home Discount expansion confirmed with millions more eligible for the £150 top-up this winter – here's what we know
Around 2.7 million more low-income households, including 900,000 families with children, will become eligible for the £150 Warm Home Discount this winter, as the Government has confirmed it will remove the existing 'hard to heat' eligibility criteria. The extension has only been confirmed for winter 2025/26, with further changes possible for future years.
The Government has said that this change - originally proposed back in February - will see an estimated 6.1 million households receive the discount this winter.
Martin Lewis: Good to see that the 'high energy costs' criteria will be scrapped
Good. Today the Government's confirmed the Warm Home Discount (WHD) scheme that gives some lower-income homes £150 energy bill support, will be extended to 2.7 million extra households this winter (we were told in February, but it has today rubber stamped the consultation).
Currently, WHD goes to those on means-tested benefits like Universal Credit (which helps both working people and the unemployed) but only if they have 'high energy costs'.
That criteria is thankfully to be scrapped, which is why millions more will receive it. I'm glad, we've long campaigned on how this left some out in the cold as it was a poorly structured blunt instrument that was unfairly implemented*, let alone that it's a disincentive to improve a home's efficiency!
* This criteria was introduced in 2022 in a way that was easy to implement but had, in my view, fundamental flaws. High energy usage wasn't assessed using bills, but by an algorithm looking at the Valuation Office Agency data on each home – yet this didn't factor in energy efficiency or a home's condition.
That left many not getting it as the algorithm wrongly assumed they had low usage, when they probably didn't. As MoneySavingExpert.com user Rob told us, his home was too small to qualify: "I'm still as cold and as poor as I was last year, except this year I don't get any help."
Plus where there was no data, homes were asked to provide an EPC certificate, but an EPC costs up to £120 negating the gain of doing so (and many didn't have that to shell out).
During the last Government, I contacted the then Secretary of State, Grant Shapps, about this and he told me he recognised some of the issues and would look to put more flexibility in the system – little happened.
We submitted the same info to this Government, and I'd spoken to Ed Miliband about it... how much that played into this and how much was just Government wanting to expand the system I don't know.
In England and Wales, you'll get the Warm Home Discount automatically this winter if eligible
If you live in England and Wales, you will automatically receive the Warm Home Discount for 2025/26 if you receive one of the following means-tested benefits on 25 August (the qualifying date for the payment).
-
Housing Benefit;
-
Income-related Employment and Support Allowance (ESA);
-
Income-based Jobseeker's Allowance (JSA);
-
Income Support;
-
Pension Credit (both the Guarantee Credit and Savings Credit elements will count); or
-
Universal Credit.
The £150 is typically deducted from your electricity bill between October and March. You may be able to get the discount on your gas bill instead, as long as your supplier provides both your gas and electricity. For more details, see our Warm Home Discount guide.
In Scotland, most will have to apply for the payment
The UK Government said there would be a proportionate increase in funding available for Scotland – but otherwise the process will work the same way as it did last winter.
The payment is only automatic in Scotland for those getting the Guarantee Credit element of Pension Credit. If you are receiving one of the above means-tested benefits on 25 August 2025 (the qualifying date for the payment), you'll be eligible but will have to apply to your energy supplier to claim it. Applications will open in October.
There is no equivalent scheme in Northern Ireland.
A bigger shake-up to Warm Home Discount is still expected beyond this winter
Later this year, the Government plans to consult on the future of the scheme beyond 2026. The Government has previously said it is "considering more substantial changes to the Warm Home Discount scheme to improve the design of the scheme beyond the current regulations which expire in 2026."
Share this guide?
8 July 2025
Clever ways to calculate your finances
