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 £150 discount off electricity bills, applied automatically by the electricity supplier, and is due to reopen in October 2026, with the discount applied to bills by March 31 the following year.
Energy bills rise 13%
The average household gas and electricity bill went up by 13% in July as Ofgem's new energy price cap took effect, taking annual bills to £1,862 - a rise of £221. The increase was largely driven by a spike in global energy wholesale prices due to the conflict in the Middle East, meaning households who pay via direct debit now face electricity charges of 26.11p per kWh and gas charges of 7.33 per kWh.
Forecasts suggest bills will remain high throughout the winter, with analysts Cornwall Insight predicting a typical household bill of £1,849 from October.
Pension Credit unlocks £150 discount
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.
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. Currently, 28 energy suppliers are part of the 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 extended to 2030/31
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, or 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; and 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, or 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.”
