The Warm Home Discount is a government scheme that requires participating energy suppliers to provide a one-off discount of £150 on the electricity bills of eligible households each winter. The discount is applied directly to your electricity account - it is not a cash payment and cannot be transferred to a different account or supplier.
The scheme runs from October to March each year, with most payments applied between October and January. It covers electricity bills only - not gas bills - although for prepayment customers it is applied as credit to the electricity meter.
The scheme is mandatory for all energy suppliers with more than 150,000 domestic customers. Smaller suppliers may also participate voluntarily. If your current supplier does not participate in the scheme, you cannot access the discount through them, even if you would otherwise qualify.
Unlike most energy grants, the Warm Home Discount does not fund home improvements - it is a direct bill reduction. If you are looking for funding for insulation or heating upgrades, ECO4, GBIS or the Home Upgrade Grant may be more relevant.
The scheme has two groups with different qualification routes:
Core Group 1 - Pension Credit Guarantee recipients (automatic):
Core Group 1 customers are identified automatically by the DWP from their Pension Credit records. You should receive a letter from either the DWP or your energy supplier between August and January confirming you will receive the discount. You do not need to apply.
Broader Group - Other low-income households:
The Broader Group covers households on means-tested benefits who also live in a property assessed as having high energy costs based on characteristics such as low EPC rating, number of rooms and heating type. Eligible benefits include Universal Credit, income-based JSA or ESA, Income Support, Housing Benefit and Child Tax Credit.
Broader Group eligibility is determined by the government's data matching process and is managed by individual suppliers, who may have different application processes and opening windows. Check directly with your supplier for their Broader Group process.
If you have a prepayment electricity meter, the £150 discount is applied as credit to your meter rather than as a bill reduction. Your supplier will typically notify you when the credit has been added and may send a voucher or apply it automatically depending on your meter type.
The Warm Home Discount has a fixed budget each year. If you qualify for the Broader Group but your supplier's allocation is used up before your application is processed, you may not receive the discount that year. Applying as early as possible in the scheme window reduces this risk.
If you are on Pension Credit Guarantee Credit and do not receive notification by December, contact the DWP or your energy supplier directly - you may have been missed due to a data matching issue.