State pensioners can get £150 off their energy bills automatically with a single claim to the Department for Work and Pensions (DWP). The Warm Home Discount Scheme provides a one-off discount to eligible low-income households, applied automatically by electricity suppliers.
Energy Price Cap Rise
The average household gas and electricity bill is due to rise by 4% this winter as Ofgem is set to increase its energy price cap to a three-year high. The regulator said the price cap will rise by £60 per year (or £5 per month) from October 1 to £1,723 for a typical dual fuel household in England, Scotland and Wales.
The bill increase comes largely as a result of higher wholesale gas prices due to the ongoing conflict in the Middle East, which has pushed up the cost of supplying energy in the UK. There is some relief from the price rise next month as the government has said it will remove VAT from electricity bills from October 1 to March 31, 2027, but the 5% VAT charge for gas will still remain.
Pension Credit Eligibility
Early forecasts suggest bills are going to rise even further next year, with analysts Cornwall Insight predicting the cap will hit £1,872 per year from January to March, up 9% on October's level. But for some pensioners on a low income, it's possible to automatically reduce energy bills by £150 through the DWP benefit Pension Credit.
Pension Credit provides extra cash to people who have reached State Pension age and are on a low income, and thanks to a 4.8% uplift in April, the benefit is now worth an average of £4,300 per year. In the 2026 to 2027 tax year, single claimants can top up their income to £238 per week, or their joint weekly income to £363.25 per week if you have a partner, but if you qualify for Pension Credit, you can also unlock access to further financial support - including a £150 cut to your energy bills.
Warm Home Discount Scheme Details
Pensioners in England, Wales and Scotland who are on a low income and get the Guarantee Credit element of Pension Credit are eligible for help with heating costs through the Warm Home Discount Scheme. The scheme provides a one-off £150 discount off electricity bills which is applied automatically by your electricity supplier and is due to reopen in October 2026, with the discount to be applied to bills by March 31 the following year.
Currently, 28 energy suppliers are part of the Warm Home Discount Scheme including major firms like British Gas, E.ON Next, EDF, Octopus Energy, OVO and ScottishPower, so eligible customers of these suppliers are in line to get £150 off their energy bills from October.
Scheme Extension and Changes
The Department for Energy Security and Net Zero (DESNZ) confirmed earlier this year that the Warm Home Discount Scheme will be extended in England, Wales and Scotland for a further five years to winter 2030/31. The DESNZ said the existing eligibility criteria will be retained in England and Wales for a further five years, and the current Core Group 1 and 2 will be merged into a single Core Group.
Currently, households in England or Wales qualify for the £150 discount automatically if they are the named billpayer on their energy bill and get the Guarantee Credit element of Pension Credit. This is known as 'Core Group 1'. Those who don't get the Guarantee Credit element of Pension Credit may still be eligible if they are the named billpayer on their energy bill and receive any of the following means-tested benefits:
- Housing Benefit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker's Allowance (JSA)
- Income Support
- The 'Savings Credit' element of Pension Credit
- Universal Credit
This is known as 'Core Group 2'. As of winter 2026/27, these two core groups will be merged into a single group.
As for those in Scotland, the discount is currently only automatic for those who get the Guarantee Credit element of Pension Credit. But as of winter 2026/27, Scottish households will get the £150 bill help automatically if, on the qualifying date in August 2026 all of the following apply:
- you (or your partner) are named on the electricity bill
- you get any element of Pension Credit
- you get one of the following means-tested benefits and meet other conditions, such as having a child under the age of five or you get a disability related uplift as part of your benefit: Housing benefit, Income-based Jobseeker's Allowance, Income-related Employment Support Allowance, Income Support, Support for Mortgage Interest, Universal Credit
Energy providers in Scotland will also have to allow some households in receipt of certain benefits to apply for the discount but the criteria will vary by supplier and this is yet to be confirmed.
The DESNZ said: "The Government will lay regulations for the next scheme period to ensure the regulations are in force ahead of winter 2026/27. This will enable the continuation of the scheme without interruption, securing continued support for around 6 million low-income and vulnerable households next winter and providing certainty for suppliers and delivery partners."
