Millions of households in the UK are set to receive a £150 reduction on their energy bills through the Warm Home Discount scheme. This discount is typically applied by energy suppliers directly to the bill rather than given as a cash payment.

Households using a pre-payment meter may receive the discount in the form of a voucher, depending on the supplier, which can be used to top up the meter. Eligible households will receive confirmation letters from the Department for Work and Pensions (DWP) starting this week.

It is now estimated that approximately six million households will benefit from the discount, including an additional 2.7 million due to the scheme’s expansion this year. Previously, only those receiving the Guarantee Credit element of Pension Credit in England and Wales were eligible, limiting support to certain pensioners.

The government has announced the removal of the threshold for recipients of means-tested benefits on energy bills, allowing some individuals under the State Pension age to receive the Winter Payment if eligible.

Recipients of Pension Credit will automatically receive the discount, while other eligible individuals may need to apply through their energy supplier. To qualify, the energy supplier must be part of the scheme, and either the claimant or their partner must be receiving specific means-tested benefits or tax credits, with their name on the electricity bill as of August 24, 2025.

According to DWP guidance, various benefits could make individuals eligible for the Winter Fuel Payment. Participating energy firms in the Warm Home Discount scheme can be found on GOV.UK.