The warm home discount is a one-off payment of £150 credit applied to your energy bills to help those who are struggling to pay their bills during the colder months.

Not all energy suppliers offer this energy bills support scheme, but more suppliers are joining year on year. Applications for this must also be submitted between October 2023 and 31 March 2024.

Applying for this energy support scheme doesn’t affect entitlement to the winter fuel payment or cold weather discount.

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Understanding the Warm Home Discount

With the warm home discount, successful applicants will receive £150 as credit that will go towards their energy bills over the winter months. It is important to note that the credit is not paid to you directly, instead your electricity supplier will add it to your electricity account between October 2023 and 31 March 2024.

If you are a dual fuel customer, both gas and electricity supplies on the same contract, you may be able to get the discount added to your gas bill. If you have a prepayment meter, you will most likely receive a voucher.

Some participating energy suppliers may also offer indirect help to customers as part of the Warm Home Discount scheme. This help may be advice on reducing your energy usage and debts.

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Who is eligible for the Warm Home Discount?

There are two groups of eligible customers for the warm home discount scheme, these are:

Core Group

To be eligible as part of the Core Group you must meet the required criteria by a specific date, also known as the “qualifying date”:

  • Your supplier must participate in the scheme (Some smaller energy suppliers will participate but energy firms with more than 250,000 customers must participate)
  • Your, or your partner’s name must be stated on the energy bill
  • You receive the guaranteed credit element of Pension Credit

If you meet the criteria for the core group, the discount will be applied automatically the following winter. Although if there are any issues, you will be contacted to provide further information.

For example, if you meet the requirements in July 2020, the warm home discount will be automatically applied in winter 2023-24. Check out the warm home discount page on the government website to find out more.

The Department for Energy Security and Net Zero plays a crucial role in ensuring energy security for eligible households by utilizing property data and statistical methods to identify those most at risk of high heating costs.

Broader Group

The broader group is slightly more complicated than the core group as you must apply directly through your supplier. Each will have different rules on who and when they help. However, these must include requirements such as being in receipt of income-related Employment and Support Allowance with a pensioner premium, child tax credit, or child tax credits.

The essential criteria and guidelines are set out in the Warm Home Discount regulations. These include:

  • Being in receipt of income-related Employment and Support Allowance with a pensioner premium
  • Receiving child tax credit or child tax credits
  • Receiving income based job seeker’s allowance
  • Identified with high energy costs
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What is the application process?

What do I need to do if I’m in the Core group?

A payment will be made after you have had contract from the DWP also known as the Department for Work and Pensions. Whoever supplies you on 4 July 2023 will be responsible for giving you your payment.

It is essential that you are the named electricity account holder or the partner of the account holder to receive the discount.

You will possibly be in the Core Group if you are receiving the Guarantee Credit element of pension credit on the qualifying date. This is still applicable if you receive the Savings Credit. If you are eligible for the Core Group, the DWP will be in contact during the winter months.

If you do not receive any contact from the DWP by the end of December but you believe you may still be eligible for the warm home discount, if you receive pension credit, you need to call 0800 731 0214

What do I need to do if I’m in the Broader group?

The broader group has a much wider range of criteria for the warm home discount including:

  • Universal Credit
  • Income-based Job seeker’s allowance
  • Income Related Employment and Support Allowance
  • Income Support

Universal credit and income support are not the only criteria to be applicable for the broader group, other criteria include parental responsibility for a child under 5 or the Disability allowance.

What are the benefits of the Warm Home Discount? 

The Warm Home Discount offers a £150 reduction on winter energy bills, automatically credited to your electricity account. This helps ease the financial burden of high energy costs during the colder months.

For dual-fuel customers, the discount may be applied to gas bills, and prepayment meter users often receive it as a top-up voucher. Additionally, some suppliers provide extra support, such as energy-saving advice and help with managing energy-related debts.

Overall, the discount reduces financial pressure, especially for vulnerable households, making energy costs more manageable during winter.

How much is the Warm Home Discount? 

If you’re eligible for the Warm Home Discount, you’ll receive a £150 reduction on your winter energy bills. Instead of receiving the money directly, it will be credited to your electricity account, typically between October and March.

If you have a dual-fuel plan (both gas and electricity with the same supplier), you may be able to apply the discount to your gas bill instead. For those using a prepayment meter, the discount will likely come as a top-up voucher.

In addition, some energy suppliers provide extra support through the Warm Home Discount scheme, such as energy-saving advice and assistance with managing energy-related debts.

How and when is the Warm Home Discount applied to bills by participating energy suppliers?

Core Group

If you qualify for the core group and you switch energy supplier who participates in the energy bills support scheme to another that does also, you will still receive the discount automatically.

If you switch after the date but met the eligible criteria at the time, your previous supplier is responsible for making the warm home discount, this will usually be done by cheque.

If you switch from your old supplier that doesn’t participate to a participating supplier after the date, you will need to submit a Broader Group application for the warm home discount even if you receive guarantee credit.

Broader Group

Broader group applications can’t be transferred between suppliers which means that no matter whether you switch to another participating provider, you will have to redo the application process. Although, each will run the scheme slightly differently, so it is worth checking the eligibility criteria when switching.

How does the Warm Home Discount affect people’s bills? 

The Warm Home Discount reduces eligible households’ winter energy bills by £150, which is automatically credited to their electricity account, lowering the amount they owe during the colder months. This discount can also be applied to gas bills for dual-fuel customers or provided as a top-up voucher for those using prepayment meters. By reducing the overall energy cost, it helps ease financial pressure, especially for vulnerable households, making it easier to manage heating and electricity expenses.

If you believe that you are eligible to be part of the Core Group but have yet had contact from the DWP, call 0800 731 0214 to speak to the warm home discount scheme helpline.

For more information on additional winter payments available, check out more on the Winter Fuel payment and Cold Weather payment.

Do you need help switching supplier? Contact us today to speak to one of our expert energy consultants who will help you switch energy supplier and reduce energy bills.

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