DWP £150 cost of living discounts for millions on 4 benefits confirmed with October letters
DWP £150 cost of living discounts confirmed with October letters

Around six million households across the country will receive a £150 Warm Home Discount this winter, with letters confirming the payment going out this month. The discount is being delivered directly into bank accounts by 24 energy suppliers that have enrolled in the scheme.

Approximately 250,000 homes in Scotland will benefit automatically for the first time. Letters will be sent in October confirming that eligible customers will receive £150 off their energy bill. If people do not receive a letter by mid-January, they have been advised to call a helpline, which goes live in the middle of October.

Who qualifies for the payment

Every household whose account holder receives means-tested benefits qualifies for the payment. In England and Wales, those claiming Housing Benefit, Income-related Employment and Support Allowance, Pension Credit and Universal Credit will be entitled to it – the identical group as last winter.

People need to have been named on the energy bill by August 23 this year to be eligible. The suppliers participating in the winter 2026 to 2027 scheme include 100Green (formerly Green Energy UK or GEUK), Boost, British Gas, E (Gas and Electricity), Ecotricity, EDF, EnergyCoop – see Octopus Energy, E.ON Next, Fuse Energy, Good Energy, Home Energy, London Power, Octopus Energy, Outfox Energy, OVO, Sainsbury's Energy, Scottish Gas – see British Gas, ScottishPower, So Energy, Square 1 Energy Ltd, TruEnergy, Tulo Energy, Utilita and Utility Warehouse.

Government and supplier statements

Energy Secretary Miatta Fahnbulleh said: “Families will be worried about their energy bills this winter and our focus is on giving them breathing space, as we continue to work to bring down bills. Almost a million more families with children received the £150 Warm Home Discount last winter, after we expanded the scheme.”

“If you know someone who might benefit, please start spreading the word and encourage them to check they are named on their energy bill.”

Octopus Energy said: “The Warm Home Discount helps eligible customers cover their high winter bills. Customers who qualify receive a credit of £150 towards their energy bills before 31 March 2027.”

Octopus added: “If you are eligible, you should look out for a physical letter by post between October and December 2026 confirming you will get £150 off your electricity bill, or to call the helpline to check if you are eligible. Physical letters will be sent by Warm Home Discount Scheme, PO Box 970, PRESTON, PR2 0FX.”

Deadlines and wider context

If you have not received a letter by mid-January 2027, but you think you should be eligible for a rebate under Core Group, you will need to contact the WHD helpline. 26 February 2027 is the deadline to contact the Warm Home Discount helpline if you are advised to get in touch in your letter.

This comes after the Prime Minister's swift decision to scrap VAT on domestic electricity bills from 1 October, amongst his earliest actions in office, knocking £45 off the annual Ofgem price cap. The government indicated the reminder follows prompt measures to eliminate VAT from electricity bills from 1 October, providing households with some relief amid cost-of-living pressures.

The Government announced earlier this year that millions of qualifying households will continue receiving the Warm Home Discount until the end of the decade, with the scheme extended through to 2030/1. Last year's Budget removed an average of £150 from energy bills, a reduction which is reflected in bills going forward. The Government stated that the Warm Homes Plan will also cut energy consumption, lower bills for millions of households and help lift households out of fuel poverty.