Cost of Living Payments are back in the spotlight as millions across the UK face another winter of financial pressure. With energy bills remaining a major concern, especially during the colder months, the government has rolled out a much-needed update to ease the burden on struggling households. Prime Minister Keir Starmer has confirmed that the cost of living payments will be expanded to include many more families this year.
This blog will walk you through who qualifies, when the payments will be applied, how much you can expect, and why this change matters. With more people than ever set to benefit, this could be one of the most impactful updates to energy bill support in recent years. If you receive Universal Credit, Housing Benefit, or support for low income, this is the guide you need to read right now.
Cost of Living Payments: What Has Changed and Who Benefits Now
For the first time, all households receiving Universal Credit will automatically receive the Warm Home Discount without needing to apply. This major change makes the cost of living payments more accessible than before. Previously, only specific groups within benefits were eligible, which left out many low-income families. This year, the updated rules are expected to double the number of households receiving the £150 discount on their energy bills.
The goal is simple: to make sure help reaches those who need it most. Whether you pay your energy bills monthly or use a prepayment meter, this support will either show up as a bill credit or a voucher. The scheme also continues to include low-income pensioners receiving the Guarantee Credit part of Pension Credit. With the cold months ahead, this new expansion could not have come at a better time.
Overview of the Warm Home Discount Scheme
| Key Details | Information |
| Payment Type | Warm Home Discount (energy bill support) |
| Amount | £150 one-off discount |
| Payment Method | Credit to bill or voucher |
| Eligibility Expanded | Yes – includes more benefits |
| Universal Credit Recipients | All now qualify |
| Pensioners on Guarantee Credit | Still eligible |
| Energy Providers Involved | All major UK suppliers |
| Timeline for Discount | November 2025 to March 2026 |
| Total Households Benefiting | Around 6 million |
| Government Intent | Reduce winter energy costs for low-income homes |
Universal Credit Claimants Now Automatically Eligible
This year, everyone on Universal Credit qualifies for the £150 Warm Home Discount. This is a major shift from previous years, where only specific groups within that benefit were selected. This change opens the door for many more working families who rely on Universal Credit to get some relief on their energy costs. The discount will apply directly to energy bills or come as a voucher, depending on how you pay.
The government’s move aims to tackle the ongoing cost of living crisis more fairly. If you are on Universal Credit, you do not need to fill out any forms or make calls. Your energy provider will automatically apply the discount if you are eligible. Make sure your supplier has your correct information to avoid delays.
How and When Payments Will Be Made
The £150 discount will not come as a bank payment. Instead, it will be applied to your energy account or sent as a voucher to be used with your supplier. The timing will vary depending on your provider, but most discounts will be delivered between November 2025 and March 31, 2026. British Gas, for instance, has already stated that most eligible customers will see the discount before the end of January.
It is important to remember that this is not cash in hand. If you are used to getting cost of living support through direct payments, this might feel different. Still, the discount directly lowers your energy costs, which can make a big difference during the colder months.
Pensioners Still Covered Under the Updated Scheme
Pensioners receiving the Guarantee Credit part of Pension Credit are still included in the scheme. This group has always been a priority in winter energy support schemes. If someone in your family is a low-income pensioner, this could be a helpful reminder to check their eligibility.
The updated rules aim to keep things simple and automatic. If the pensioner’s details are with the energy provider and the Department for Work and Pensions, the discount should be applied without any need to apply or call. Keeping your address and account information updated is key.
Starmer’s Response to Energy Bill Pressure
Since taking office, Keir Starmer has faced pressure to deliver on his promises to reduce living costs. The expanded Warm Home Discount is one of the first major steps. In Parliament, he highlighted that bringing down bills for millions is a priority and admitted this is only the start.
The Prime Minister has acknowledged the long-term nature of the cost of living crisis. This payment will not fix everything, but it is a signal that the government is actively looking to support low-income households through immediate, targeted action.
Key Benefits That Now Qualify
This year’s update brings in more benefits under the Warm Home Discount scheme. Here are the main ones now included:
- Universal Credit
- Housing Benefit
- Income Support
- Employment and Support Allowance (ESA)
- Pension Credit (Guarantee Credit only)
If you are receiving any of these, your energy provider will work with the government to process your discount automatically. Be sure to check your next few bills and any letters from your supplier for updates.
How to Check If You Qualify
You do not need to apply. Your eligibility is checked automatically based on your benefit status and energy provider records. However, here are a few steps you can take:
- Review your recent benefit letters to confirm you are on one of the qualifying benefits
- Check your energy provider’s website or contact them directly for updates
- Look out for a confirmation letter or email from your supplier
- Make sure your energy account is up to date with the correct name and address
If anything is unclear, reach out to your energy company or Citizens Advice for help.
FAQs
No, the discount will be applied directly to your energy bill or issued as a voucher, not as a cash deposit.
No application is required. If you are eligible, your supplier will apply the discount automatically.
Contact your energy provider. They can check your eligibility and confirm whether the discount has been applied.
No, this is a separate government scheme that applies a discount to your energy bill, not your Universal Credit payment.
No, the timing is decided by your energy supplier, but it will be between November 2025 and March 2026.
