COST OF LIVING

Thousands of families to get £150 Warm Home Discount this winter

Last modified on Monday 25 September 2023

Left: Dept for Work and Pensions headed paperRight: women and baby in jumpers next to radiator

People on certain benefits will be able to apply for money off their utility bills to help with the cost of living crisis

Households on certain benefits will be able to apply for a £150 Warm Home Discount next month, when the winter 2023 to 2024 scheme opens.

The Warm Home Discount Scheme, which reopens in October, is a one-off payment made directly to your electricity energy suppliers by the Department for Work and Pensions (DWP). Those who are eligible will receive a letter before January 2024 explaining the details of the discount.

Most households who qualify for the funding will receive it automatically via a discount on their bill, but some will have to contact their energy provider directly to get it.

Householders who have the same supplier for both gas and electricity could be able to get the discount off their gas bill instead, but will need to speak to their provider to discuss.

What exactly is the Warm Homes Discount?

The Warm Homes Discount is a one-off payment made to your electricity supplier (and in some cases gas) to help with the cost of keeping your home warm over the winter.

Last year, the government explained how it would work for the winter period of 2022 through to spring 2023. It said at the time:

'You could get £150 off your electricity bill for winter 2022 to 2023 under the Warm Home Discount Scheme.

'The money is not paid to you – it’s a one-off discount on your electricity bill, between October 2022 and March 2023.

'You may be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity and you’re eligible. Contact your supplier to find out.'

Who is eligible for the Warm Homes Discount?

The official advice from the government on who is eligible for the discount points out that depends on where you live, and what benefits you are already receiving.

The guidelines say:

'There are different ways to qualify for the Warm Home Discount Scheme depending on where you live. If you live in England and Wales you qualify if you either:

  • get the Guarantee Credit element of Pension Credit
  • are on a low income and have high energy costs

(Pension Credit is extra money awarded to those over State Pension age and on a low income to help with living costs. Pension Credit can also help with housing costs such as ground rent or service charges.)

If you live in Scotland you qualify if you either:

  • get the Guarantee Credit element of Pension Credit (Core Group 1)
  • are on a low income and meet your energy supplier’s criteria for the scheme (Core Group 2)

The Warm Home Discount scheme is not available in Northern Ireland, but you might be able to get help via the Affordable Warmth scheme, which you can find out about on the website of the Northern Ireland Housing Executive.

If you are on a low income

The Government advises that it has NOT YET updated the Warm Home Discount Scheme eligibility page for winter 2022 to 2023 as the scheme has closed, but they will update as soon as the scheme reopens again in October 2023.

However, last year's criteria for low-income families in England and Wales who did not get the Guarantee Credit element of Pension Credit, was based on the the following eligibility:

  • your energy supplier is part of the scheme
  • you (or your partner) get certain means-tested benefits or tax credits
  • your property has a high energy cost score based on its characteristics
  • your name (or your partner’s) is on the bill

This is known as being in the ‘core group 2’.

Qualifying benefits and tax credits

The qualifying means-tested benefits that could make someone eligible last year were:

  • Housing Benefit
  • income-related Employment and Support Allowance (ESA)
  • income-based Jobseeker’s Allowance (JSA)
  • Income Support
  • the ‘Savings Credit’ part of Pension Credit
  • Universal Credit

Additionally, last year you could also qualify if your household income fell below a certain threshold and you got either:

  • Child Tax Credit
  • Working Tax Credit

Can I get the discount if I am on a pre-paid or pay-as-you-go meter?

Yes, the government states:

'You can still qualify for the discount if you use a pre-pay or pay-as-you-go electricity meter. Your electricity supplier can tell you how you’ll get the discount if you’re eligible, for example a voucher you can use to top up your meter.'

Will accepting the payment affect other benefits?

No. And the government states that the discount will not affect Cold Weather Payments or Winter Fuel Payment, either, if you are eligible for, and receive, those.

Which energy providers are signed up for the scheme?

As the scheme has not yet opened for 2023/4, the list is not available, however, these are the providers who were part of the scheme last year:

  • Affect Energy – see Octopus Energy
  • Atlantic – see SSE
  • Boost
  • British Gas
  • British Gas Evolve (formerly British Gas X) - see British Gas
  • Bulb Energy
  • Co-op Energy - see Octopus Energy
  • E (Gas and Electricity)
  • Ecotricity
  • E.ON
  • E.ON Next
  • EDF
  • GEUK (Green Energy UK) - if you live in Scotland, you must be in the ‘core group’ to be eligible
  • Good Energy
  • London Power
  • M&S Energy
  • Nabuh Energy - see British Gas
  • Octopus Energy
  • Outfox the Market
  • OVO
  • Rebel Energy - if you live in Scotland, you must be in the ‘core group’ to be eligible
  • Sainsbury’s Energy
  • Scottish Gas – see British Gas
  • Scottish Hydro – see SSE
  • ScottishPower
  • Shell Energy Retail
  • So Energy
  • Southern Electric – see SSE
  • SSE
  • Swalec – see SSE
  • Utilita
  • Utility Warehouse

What should I do next?

If you are eligible for this year's Warm Home Discount, you should receive a letter before January 2024.

You can also keep an eye on the government's Warm Home Discount webpage here, which will re-open with all the up-to-date information in October.

Your energy supplier may also have information on their website, and you can check in with Ofgem, which offers comprehensive info on the scheme, too.

What other help can I get during the Cost of Living crisis?

Our Cost of Living hub has all the latest stories about benefits and entitlements, and up-to-date information on announcements from the DWP.

You will find lots of government-based advice on cash you might be entitled to, plus all the dates when you can expect the latest Cost of Living payments and other allowances to land in your bank account.

There are also top tips from the Money Saving Expert, Martin Lewis, as well as brilliant ideas for saving money on everything from your weekly shop, to that well-deserved holiday.

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