MoneySavingExpert (MSE), founded by Martin Lewis, has issued a warning about fake letters related to the Warm Home Discount scheme. The scheme provides a one-off £150 discount on electricity bills, which can also be applied to gas costs. The discount is not paid as a lump sum; instead, the energy provider automatically deducts it from the bill in a single payment.
The scheme opens in October each year, and as millions of households prepare to receive their letters, MSE cautions that scammers will likely try to take advantage. The advice comes as part of a new article reminding people how to verify that any correspondence about the discount is genuine.
How the Warm Home Discount Works
The discount is available to several groups in England and Wales, including those on a low income, individuals with high energy costs, and recipients of certain benefits such as Universal Credit or Housing Benefit. To qualify, the claimant must have been the named person on the electricity bill on August 23, 2026. In Scotland, eligibility also requires meeting the criteria set by the energy supplier, and the claimant or their partner must have been named on the electricity bill in August of this year.
Those in the broader group, who do not qualify automatically, must apply directly through their energy provider. MSE advises that anyone considering switching suppliers should wait until after receiving the discount.
Spotting a Genuine Letter
The key indicator of a legitimate letter is that it arrives as a physical copy in the post. The government only sends hard copies, so any text or call claiming eligibility is a scam. While some energy suppliers may send texts or emails about the discount, MSE still urges caution: do not click on any links, and contact the supplier directly using the details on the bill to verify the discount.
If a letter states the recipient is automatically eligible, no further action is needed. MSE warns that any request to click a link or make a phone call in such cases is also a scam. Letters will be sent out from late October until January 2027, with the discount applied to accounts by March 31.
In some cases, a letter may ask for extra information, flagging the recipient as 'potentially eligible.' This applies to those receiving Housing Benefit, Income-related Employment and Support Allowance (ESA), Pension Credit, or Universal Credit. The letter will include a unique code and a government helpline number to call, and may require providing the billpayer's name and account number. However, if asked for bank details or sent a link to click, that is a red flag.
What to Do If You Are Scammed
If someone has already been scammed, MSE advises ending communication with the scammer immediately. The advice states: 'Don’t be tempted to respond to any further calls, emails or text messages – no matter how urgent they sound.' It also recommends contacting the bank to cancel any further payments, either directly or by calling the 159 hotline, which connects to the bank.
If money has been lost, the scam should be reported to the police. In England, Wales, or Northern Ireland, a report can be made via Report Fraud. In Scotland, Police Scotland can be contacted on 101. Even if no money was lost, reporting is still encouraged, with details depending on the method of the scam (text, email, website, or phone).
Eligibility for the Warm Home Discount in England and Wales includes receiving the Guarantee Credit element of Pension Credit, being on a low income with income-related ESA and high energy costs, receiving Housing Benefit, or being on Universal Credit. In Scotland, eligibility extends to those receiving Guarantee Credit, those on a low income meeting supplier criteria, those receiving extra Universal Credit due to a disability or health condition, those qualifying for income-related ESA, and those receiving a disability or pensioner premium with a Support for Mortgage Interest loan. The scheme is not available in Northern Ireland, where the Affordable Warmth Scheme operates instead. Residents of park homes must apply through Charsis, an administrator for grants.
