DWP sending out £150 discount letters as Brits told 'check or miss out'

Expert urges UK homeowners to ‘check now or miss out’ as the Department of Work and Pensions' Warm Home Discount re-opens

Money experts are urging UK homeowners to ‘check now or miss out’ as the Department for Work and Pensions ( DWP ) re-opens its £150 Warm Home Discount (WHD) scheme. Around three million households are expected to benefit from the Warm Home Discount, according to the government body.

The WHD scheme, introduced in 2011, places a legal obligation on licensed gas and electricity suppliers to deliver support to people on low-income. It is also aimed at the most vulnerable, those susceptible to cold-related illness, living on their own or mainly in fuel poverty.

The scheme provides a one-off £150 discount off your electricity bill.to those on low incomes or receiving Pension Credit. The money will be much-needed relief for many during the colder months.

In England, fuel poverty is measured using the ‘Low Income Low Energy Efficiency’ (LILEE) metric. This defines fuel poverty as a household which:

• has a residual income below the poverty line5 (after accounting for required fuel costs),
• and lives in a home that has an energy efficiency rating below Band C.

Experts at fuel supply company, Your NRG, say the £150 is paid directly to the energy provider, not to the individual, ensuring the credit goes towards reducing energy costs. A spokesperson added: "Eligibility rules changed in 2022, meaning some people who previously qualified may no longer be eligible, while others might now need to apply if they don’t automatically receive the discount.

"It's crucial that households check their energy provider’s website to confirm when the scheme opens and if they need to take any action. If your supplier provides both gas and electricity, you may even be able to apply the £150 to your gas bill instead – just check with them once the scheme is live."

You qualify if you either:

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

They continued: "For those using Pay As You Go or Prepayment meters, the support will come as a voucher that can be used to top up your meter. This ensures that even customers not on credit accounts can still access this critical help.

"Additionally, people in Scotland should be aware of the £58.75 Winter Heating Payment and the £151.50 Child Winter Heating Payment, which could provide further support to low-income and disabled households."

They added that if you are eligible, you'll get it automatically and you should receive a letter between October, 2024, and January, 2025, explaining your status and whether you need to take further action. If you do not get this letter by January, check with your supplier or the WHD helpline.

They warned: "Don’t wait until it’s too late, as you may miss out on the £150 credit if action isn’t taken by February 28, 2025. With the energy price cap set to rise by 10% this month, it’s more important than ever to ensure you’re accessing all available support."

This scheme could be a vital support for individuals depending on the Guarantee Credit part of Pension Credit or struggling with high energy bills while on a limited income. Be sure to review the eligibility requirements and contact your provider to verify your status.

If your energy supplier offers both gas and electricity and you qualify, you might be able to receive a discount on your gas bill instead. Reach out to your supplier to learn more.