The Warm Homes Discount Scheme can help lower the cost of your energy bills by £150 this winter if you meet the eligibility criteria.
The scheme opened on 16 October for this winter, so here’s what you need to know.
What is the Warm Homes Discount scheme?
The Warm Homes Discount scheme is an initiative where certain energy companies provide a one-off payment or “discount” of £150 to help people on a low income to reduce the cost of their energy bills over the winter.
The scheme is available to households in England, Wales and Scotland, and has recently been extended until 2026. The scheme that is available in England and Wales is slightly different to the one in Scotland and the eligibility criteria differs too, but if you qualify you’ll receive the same discount regardless of where you live.
The way that the discount works is that any energy supplier with more than 1,000 customers is required to provide the discount to certain customers, although some smaller providers also belong to the scheme. There is a second part to the scheme whereby if an energy provider has over 50,000 customers, then they will also need to take part in establishing industry initiatives to support customers, which can cover a range of activities including providing advice and guidance on energy-saving measures.
Which energy suppliers are signed up to the Warm Homes Discount Scheme?
Not all energy suppliers are signed up to provide the Warm Homes Discount. Here are the companies that are currently part of the scheme:
- 100Green (formerly Green Energy UK or GEUK)
- Affect Energy – see Octopus Energy
- Atlantic – see SSE Energy Services
- Boost
- British Gas
- Bulb Energy – see Octopus Energy
- Co-op Energy – see Octopus Energy
- E – also known as E (Gas and Electricity)
- Ecotricity
- E.ON Next
- EDF
- Good Energy
- London Power
- Octopus Energy
- Outfox the Market
- OVO
- Rebel Energy
- Sainsbury’s Energy
- Scottish Gas – see British Gas
- Scottish Hydro – see SSE Energy Services
- ScottishPower
- Shell Energy Retail
- So Energy
- Southern Electric – see SSE Energy Services
- SSE Energy Services
- Swalec – see SSE Energy Services
- Tomato Energy
- TruEnergy
- Utilita
- Utility Warehouse.
Who qualifies for the Warm Homes Discount scheme?
The eligibility criteria for the Warm Homes Discount scheme are as follows:
- Your energy supplier needs to be part of the scheme. You can see which companies are signed up for the scheme below
- You or your partner will need to be named on your energy bill
- You’ll need to meet the eligibility criteria of the relevant scheme, which will vary depending on where you live, as we outline below.
Eligibility for England and Wales Warm Homes Discount Scheme
The Warm Homes Discount in England and Wales is available to two core groups, so if on 21 August 2023 any of the following applied to you, then you might qualify for the discount:
- Core group one: You were receiving the Guarantee Credit element of Pension Credit.
- Core group two: You received any of the following means-tested benefits and also have high energy costs because of the property you live in. The benefits you’ll need to be receiving include:
- 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
You might also be eligible if you receive Child or Working Tax Credits and your income is below a certain threshold.
Most suppliers will also have their own eligibility criteria, so make sure you check with them directly if you’re not sure whether you qualify. For example, some suppliers may ask that you’ve been a customer with them since a specific date in order to qualify for the Discount.
If you’re considering switching your energy provider, it’s worth doing plenty of research so you can be certain you’ve found the best possible deal to suit your needs. Comparison websites such as MoneySuperMarket, Uswitch and Compare the Market enable you to compare the latest energy tariffs, whether you’re looking for a fixed or variable deal.
Eligibility for Scotland Warm Homes Discount Scheme
The Warm Homes Discount in England and Wales is also available to two core groups. Unlike in England and Wales, you usually need to apply to get the Warm Homes Discount in Scotland – you won’t generally be paid it automatically, unless you’re receiving the Guarantee Credit element of Pension Credit (more on this later). The two groups are:
- Scottish Core Group: People who receive the Guarantee Credit element of Pension Credit.
- Scottish broader group: Customers who receive the following means-tested benefits and who also have a child under the age of 5, or are receiving additional disabled child premiums, disability premiums (standard, enhanced or severe), or pensioner or higher pensioner premiums. The benefits you’ll need to be receiving include:
- Income Support
- Income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Housing Benefit
- Universal Credit
- Child Tax Credit
Again, energy suppliers will also apply their own eligibility criteria, so it’s best to check with your provider.
What will you get from the Warm Homes Discount scheme?
If you qualify for the Warm Homes Discount scheme you’ll get a £150 discount on your energy bills this winter that you won’t have to repay. The discount will be paid directly to your energy supplier, and you’ll be sent a letter telling you that you’ve received the discount.
If you have a pre-payment meter for your energy, you can still get the Warm Homes Discount if you qualify for it. Each supplier manages the payment of the discount differently for this. Some will add the credit directly to your meter, while others will send you a voucher to use when you top up.
However you are paid, you should receive your discount before 31 March 2024.
How can you get the Warm Homes Discount?
How you apply for the Warm Homes Discount will depend on where you live:
Applying for the Warm Homes Discount in England and Wales
People in England and Wales won’t usually need to apply for the discount. Instead, if you’re eligible, you’ll be sent a letter between November 2023 and January 2024 telling you about the discount and your discount will be applied automatically. Some people might also be asked to confirm their details.
If you’re in England or Wales and you don’t receive a letter by mid-January, but you think you’re eligible then you can contact the Warm Home Discount Scheme via post:
110552 Warm Home Discount Scheme
PO Box 26965
Glasgow
G1 9BW
Applying for the Warm Homes Discount in Scotland
If you’re in Scotland and you’re in the Scottish Core Group (people receiving the Guarantee Credit element of Pension Credit) then you won’t normally need to apply. You’ll automatically get a letter telling you about the discount if you’re eligible.
If you’re in the Scottish broader group then you’ll need to contact your energy supplier directly to see if you’re eligible and apply. The energy suppliers will then decide who gets the discount, not the Warm Home Discount Scheme.
The number of discounts available to the broader group is limited, so it’s a good idea to contact them as early as possible. Don’t assume you’ll receive the discount if you got it last year, make sure you check with your supplier as soon as you can.
Utilita is no longer accepting applications for help from Scottish customers for 2023/24. However, its new charity Utilita Giving – created to alleviate food and fuel poverty in the UK – has allocated £500,000 to Scottish customers who are eligible for the £150 Warm Home Discount but won’t receive it through no fault of their own. The charity says households will be able to apply “within weeks”.
Helen Boardman, executive director at Utilita Giving, said: “Some households in the coldest parts of Scotland are eligible for Warm Home Discount but have missed out on their £150 helping hand this year due to the lottery of applying and falling outside of the quota.
“This is patently unfair. Imagine if the same were true for other government benefits such as the State Pension and Universal Credit…‘Yes, you are eligible, but our quota is filled, so we will not be able to make a payment to you this year.’ We cannot let politics and bureaucracy get in the way, so we are helping these homes out.”
For more information, visit the Utilita Giving website.
Where to find more help
If you’re struggling to pay your energy bills, but aren’t eligible for the Warm Homes Discount scheme, it’s worth reaching out to your energy supplier to see how they can support you. While you might not be able to get the main discount from the scheme, your supplier might still be able to help you.
For example, they might be able to suggest a few different ways of managing your costs, including moving you onto a specific repayment plan, allowing you to reduce your payments temporarily, or moving you over to a prepayment meter. You can read more about this in our guide What can you do if you can’t pay your energy bills? You can read more about other sources of support in our guide Are you eligible for help with heating costs?
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