Millions of households will be relying on the 2025 warm home discount to pay high energy bills this winter. Energy bills may have dropped slightly in July, but prices are still significantly higher than they were five years ago.
The good news is that the scheme is expanding by around 50%. The number of eligible recipients will grow from 4 million to six million households under Labour’s expansion of the program.
This will include 900,000 families with children, and 1.8 million households in fuel poverty, according to the Department for Energy Security and Net Zero (DESNZ).
The announcement follows the news that this year’s Winter Fuel Payment for pensioners would also be made available to more households. In 2024, this energy bill support was changed to only be offered only to the lowest income pensioners. This year, it will be available to all pensioners whose taxable income is below £35,000 a year.
What is the 2025 Warm Home Discount?
The warm home discount is an automatic £150 discount applied to the energy bills of some of the UK’s most vulnerable households.
The discount is intended to help counter the rising cost of living and ensure that households can afford to stay warm this winter.
Do I qualify under the new Warm Home Discount criteria?
Like in previous years, to receive Warm Home Discount, the bill payer must either be on a low income or receive the guarantee credit element of pension credit.
Previously, recipients also had to live in a home the DESNZ determined as having ‘high energy costs’. However, this requirement has been removed, allowing more than 2 million new households to become eligible.
Do I need to apply for the Warm Home Discount?
No – the warm home discount is automatically applied to the bills of those who qualify (except in Scotland, more on that below). If you’re an eligible bill payer, the discount will appear on one of your energy bills delivered between October 2025 and March 2026.
Watch out for messages via text, email or WhatsApp that tell you you need to claim your discount. The Department for Work and Pensions (DWP) has issued a warning that energy bill-related scams are on the rise.
Scammers pretending to represent the government contact individuals asking for personal information and financial details in order to pay out financial support with bills.
Applying for the Warm Home Discount in Scotland
The Warm Home Discount is not applied automatically to household bills in Scotland unless you receive the guaranteed credit element of Pension Credit.
Instead, if you’re on a low income, you’ll need to apply to your energy supplier directly. To be eligible:
- Your energy supplier must be part of the scheme
- You or your partner must receive certain means-tested benefits or tax credits
- You or your partner must be named on your bills
You can find out more about who is eligible and how to apply here.
