DWP confirms millions more people will receive £150 bills discount
The discount will be applied to people's bills from next month
The Department for Work and Pensions (DWP) has announced that millions more families are set to receive £150 in support this year. The update came in response to a written question in Parliament by Lord John Taylor, who asked what plans the Government has in place to tackle inflation.
Lord Spencer Livermore responded, outlining some of the "targeted measures" the Government is implementing to help alleviate the rising cost of living. He stated: "This includes increasing the Universal Credit Standard Allowance, extending the Household Support Fund with £1billion a year for crisis support through councils, and expanding Free School Meals to all children with a parent on Universal Credit from 2026. The Warm Home Discount will be expanded to cover around 6 million households."
The Warm Home Discount is a one-off £150 discount off your electricity bill. Previously, the payment was primarily available in England to those on the Guarantee Credit part of Pension Credit and some other people on low incomes with high energy costs.
However, from this winter, the scheme is being expanded to include anyone on a means-tested benefit, such as Universal Credit. This expansion means an additional 2.7 million households will be eligible.
The discount is paid directly to your energy supplier, who then deducts the amount from your electricity bill. If your supplier provides both your electricity and gas, you may be able to have the discount applied to your gas bill.
Those with pre-pay or pay-as-you-go electricity meters may still be eligible. Your electricity provider will inform you about eligibility and how to receive the discount, potentially through a voucher for topping up your meter.
Park home residents will need to apply online. Those with standard credit or smart prepayment meters should automatically receive the £150 credit on their electricity account between October 2025 and March 2026.
In Lord Livermore's response, he explained that the Bank of England holds responsibility for managing inflation, with the central bank targeting a reduction to 2 per cent. Inflation stood at 3.8 per cent for the year to August 2025.
He said: "The Government is maintaining stable public finances, reducing borrowing year after year to ease pressure on prices. Borrowing is set to fall by almost a percentage point as a share of GDP this year compared with last, and by a further 0.8 percentage points next year.
"The Chancellor has asked departments to prioritise reducing inflation when developing policies for the Autumn Budget, ensuring decisions support stability and long-term growth."