Warm Home Discount Scheme: How it Helps Families to Afford Their Energy Bills

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The Warm Home Discount Scheme is a government funded payment that can help those on low incomes or pensions pay for their energy bills.

With energy price rises of 54% coming into effect from April and affecting millions of households, this is a scheme that could make a difference to your bills providing you are eligible. 

Find out more about how it works, how much the payment is and what you need to do to apply. 

What is the Warm Home Discount Scheme?

The Warm Home Discount Scheme launched in 2011 to help millions of low-income families and vulnerable people afford their bills. It provides households with a one-off yearly payment of £140 (rising to £150 in winter 2022).

In May 2022 it was reported that chancellor Rishi Sunak was considering increasing the payment to £600 to help homeowners manage the cost of living crisis. 

How do I Apply?

The money is paid directly to you - it is a one-off rebate (inclusive of VAT) on your electricity bill which is automatically actioned by your energy company between October and March. 

If your energy supplier provides you with both electricity and gas then you may be able to receive this discount on your gas bill.

Your energy company will need to be part of the scheme in order for payments to be made. The full list of available suppliers can be found here

Payments for the 2021/22 scheme were delivered by February 2022, and the government expects to have more information on payment for 2022/23 in the summer of 2022. 

Who is Eligible?

What About Prepayment Meters?

You can still qualify for the Warm Home Discount Scheme. Your energy supplier will be able to tell you how the discount will be calculated and delivered, providing you are eligible.

There are two ways to qualify for the Warm Home Discount Scheme:

  • If you receive the Guarantee Credit element of Pension Credit
  • If you’re on a low income and you meet your energy supplier’s criteria for the scheme

If you receive the Guarantee Credit element of Pension Credit, then you should automatically receive the Warm Home Discount each year. The Department of Work and Pensions (DWP) should write to you to let you know if you're eligible.

You can still receive the discount if you are already entitled to the Cold Weather Payment or Winter Fuel Payment.

What Other Financial Assistance is Available?

If you are struggling to afford your energy costs then try our energy saving tips and check out these available schemes to access funding towards making your house cheaper to run: 

  • Heat pump grants - available now across the UK to help you afford the cost of installation
  • Insulation grants - get financing towards installing insulation cavity wall insulation and loft insulation, which can help to lower your energy bills
  • The Energy Company Obligation - this can help certain households access funding to make energy-efficient home improvements. 
Jack Woodfield
News Editor

Jack has worked in journalism for 11 years and is the News Editor for Homebuilding & Renovating, a role he has had since 2019. He strives to break the most relevant and beneficial stories for self builders, extenders and renovators, including the latest news on the construction materials shortage and hydrogen heating. In 2021 he appeared on BBC's The World at One to discuss the government's planning reforms. 

He enjoys testing new tools and gadgets, and having bought his first home in 2013, he has renovated every room and recently finished a garden renovation.