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One-off £150 energy bills discount – who is eligible and how does it work?

More than 2.7 million additional households are set to receive a £150 discount from their energy bills this winter, the government has said.

Letters will be sent to those who are now eligible for Warm Home Discount scheme, with the first letters going out this week.

So who is eligible, and how does it work?

Who will receive the discount?

More than six million households across England, Scotland and Wales will now receive some form of help.

People in England and Wales will qualify for the Warm Home Discount this winter if they are receiving one of the following means-tested benefits and are named on the electricity bill, either in their own name, that of their partner, or their legal representative.

  • Housing Benefit

  • Income-related Employment and Support Allowance (ESA)

  • Income-based Jobseeker’s Allowance (JSA)

  • Income Support

  • Pension Credit (Guarantee Credit and Savings Credit)

  • Universal Credit

If you live in Scotland, the same criteria apply, but you must also meet the criteria set out by your specific energy supplier.

How do you know if you are eligible?

The letters are being sent to households across England and Wales from Tuesday.

Around 250,000 eligible households will be notified this week, and every household entitled to the discount should receive a letter before January.

If you do not get a letter but think you are eligible, you must contact the Warm Home Discount Scheme by February 28, 2026.

How does it work?

For the vast majority of recipients, £150 will be automatically deducted from their energy bill without them needing to take any action.

Some households will need to provide extra information to ensure they get the discount, with the letters advising them to call the helpline provided.

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They will need an electricity bill or statement to confirm the bill payer’s name and account number.

What about pre-pay and pay-as-you-go meters?

You can still qualify for the discount if you’re on a pre-pay or pay-as-you-go electricity meter.

Your electricity supplier can tell you how you can get the discount if you’re eligible, for example you can get a voucher that you can use to top up your meter.

Why is the government doing this now?

The Warm Home Discount Scheme has existed in various forms since April 2011, and was introduced to help low-income and vulnerable households heat their homes in the winter months.

Keir Starmer has said the cash injection “will help people manage their bills while [the government fixes] the rusting energy system we inherited”.

“Because it is only through our clean energy mission that we will get bills down for everyone in the long run, creating jobs and economic growth along the way.”

Energy Secretary Ed Miliband said he is “determined to tackle energy affordability for families, and this winter more people will be helped as a result”.

“And I would urge anyone who needs to provide extra information to follow the straightforward steps and make sure they get money off their bills this winter,” he added.

Ofgem’s energy price cap rose by 2% from October 1 for a typical household in England, Scotland and Wales, just as cooler temperatures are prompting people to switch on their central heating.

This means the energy bill for the average household paying by direct debit for gas and electricity increased from £1,720 to £1,755 per year.

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