DWP confirms 'automatic' £150 cash for millions of Brits from October in wake of Winter Fuel Payment axe

The DWP's Warm Home Discount scheme gives households a £150 discount off their energy bills - and the payment is made automatically

From next month until March, state pensioners will receive an "automatic" £150 payment as part of the Department for Work and Pensions (DWP) Warm Home Discount scheme. Pensioners with accounts at British Gas, OVO, EDF, EON, and Octopus are among those set to benefit.

The DWP scheme offers an automatic £150 reduction on energy bills for eligible households. Letters notifying eligible households should start arriving from October, with the new Labour Party government reaffirming its commitment to the scheme this year.

The discount will be directly applied to electricity bills between October and March, rather than being given as a separate payment. The timing of the discount application varies among energy suppliers and can occur anytime until March 2024.

Eligibility for the Warm Home Discount extends to pensioners receiving the Guarantee Credit element of Pension Credit. Age UK explains: "If you receive Pension Credit or you're on a low income with high energy costs, you might be entitled to a £150 reduction on your electricity bill through the Warm Home Discount scheme."

Other qualifying benefits include the Savings Credit portion of Pension Credit, Universal Credit, and Housing Benefit. Some recipients of Child Tax Credit or Working Tax Credit may also be eligible, reports Birmingham Live.

However, if you live in a more energy-efficient property, you might not be eligible for the Warm Home Discount, even if you receive a qualifying benefit. This does not apply to recipients of the Guarantee Credit portion of Pension Credit.

Should you believe the energy costs assessment to be incorrect, it can be challenged by contacting the Warm Home Discount helpline on 0800 030 9322. If by mid-January you haven't received a letter and believe you qualify, you can reach out to the same helpline.

The deadline for this winter will be announced later in the year.