The £150 Warm Home Discount Extension Explained

At a Glance

The Warm Home Discount has been extended until 2030/31, providing eligible households with £150 off their energy bills each winter. The scheme supports low-income households and benefit recipients, with most discounts applied automatically. While this support helps reduce winter energy costs, additional assistance may still be needed for households facing ongoing affordability pressures.

All About the Warm Home Discount Extension

The government has confirmed that millions of households will continue to receive £150 off energy bills each winter through the Warm Home Discount, which has now been extended for a further five years, until 2030/31, subject to ongoing government policy.

With energy costs still putting pressure on household budgets, this extension of the Warm Home Discount should offer some welcome stability for people who need extra support during the colder months.

Around 6 million households across England, Wales, and Scotland are expected to benefit, with most eligible customers receiving the discount automatically through their energy suppliers, depending on location and circumstances.

The scheme mainly supports low-income households and those receiving certain means-tested benefits, helping reduce winter energy bills, often without the need to apply.

In this blog, we’ll explain what the Warm Home Discount is, who qualifies for the Warm Home Discount’s £150 reduction, how the discount is applied and why this continued support matters.

What Is the Warm Home Discount and Why Has It Been Extended?

The Warm Home Discount is a government support scheme that gives eligible households £150 off their energy bills each winter, to help with high heating costs. It was initially launched in 2011 to support people on low incomes or at risk of fuel poverty, and participating energy suppliers are required to apply the discount automatically for qualifying customers.

The government confirmed that this support will be extended for another 5 years until winter 2030/31. This means millions of eligible households will continue to benefit each year. 

The Warm Home Discount extension reflects ongoing concerns about energy costs and the need for long-term support for households facing higher energy bills.

Who Is Eligible for the £150 Energy Bill Discount?

To meet the £150 Warm Home Discount eligibility criteria, you are typically required to be on a low income, receive specific means-tested benefits, and be the named account holder for your energy bill with a supplier that takes part in the scheme.

In England and Wales, this may include people who get:

• Universal Credit
• Income Support
• Housing Benefit
• Income-based Jobseeker’s Allowance or ESA
• Pension Credit
• Guarantee Credit 
• “Savings Credit” element of Pension Credit

Recent changes mean more households on those benefits are now eligible, including families and working-age adults. Around 6 million homes are expected to receive the discount each winter.

How the Discount Is Applied to Your Energy Bills

If you’re eligible for the £150 Warm Home Discount, you don’t get the money directly into your bank account, instead it’s applied as a credit on your energy bill or meter. Most people will see the £150 credit added to their electricity account by their energy supplier between October and March each year.

For households using prepayment meters, the discount can be provided as a top-up voucher that you can redeem at a Post Office or PayPoint. 

The exact process depends on your meter type and supplier, but in most cases, the discount reduces what you owe on your energy bill, rather than being paid out early.

If you’ve been asking, “Do I have to apply for Warm Home Discount?” the answer is that, in most cases in England and Wales, the Warm Home Discount is applied automatically by your supplier if you’re eligible. 

However, if you live in Scotland, you may need to apply directly to your energy supplier, depending on your circumstances and supplier rules, if you fall into the "broader group" category for low income.

Why This Support Matters as Energy Costs Remain High

With energy prices still high, the £150 Warm Home Discount extension provides valuable support for households facing rising heating and electricity costs.

Recent estimates have placed the average annual energy bill at around £1,758, even after some price reductions. Every bit of relief can make a real difference for families budgeting around tight household expenses.

For households on low incomes or benefits, the discount reduces immediate winter costs and could help prevent fuel poverty, when a household spends a large share of its income on energy.

The extended support until 2030/31 gives eligible households greater certainty about ongoing support year after year as wider energy prices fluctuate.

What to Do If You’re Struggling With Energy Costs Beyond the Discount

If the £150 Warm Home Discount isn’t enough to cover your energy costs, there are several extra steps you might be able to take.

First, you could consider contacting your energy supplier, as they may be able to work with you on affordable payment plans, offer hardship funds or give you more time to pay if you’re struggling with money, depending on your circumstances.

You might also want to consider joining the Priority Services Register for extra support, or check government-run schemes such as the Household Support Fund and Winter Fuel Payment.

For free personalised advice on managing debt and bills, organisations like Citizens Advice or National Debtline may be able to help you explore options and practical solutions.

Understanding Support Options When Managing Essential Costs

The Warm Home Discount is a government scheme designed to provide support with energy bills for eligible households.

However, for some households, it may not fully cover rising living costs. If you’re finding it hard to manage bills alongside everyday expenses, you may wish to explore support early rather than letting arrears build up.

At Salad, we offer personal loans to employed UK residents, subject to eligibility and affordability checks.

Applying for one of our new loans doesn’t impact your credit score, and we use Open Banking in our initial affordability assessment. If successful, we report your loan to the CRAs (Credit Reference Agencies). Your credit score won’t hold you back from being eligible.

Borrowing is a financial commitment and may not be suitable for everyone. It’s important to consider whether a loan is right for your circumstances.