Rachel Reeves has confirmed expanded cost-of-living support that will deliver millions of households a £150 payment this winter and another £150 off energy bills from April. The Labour Chancellor announced the broadened Warm Home Discount now covers all Universal Credit recipients.
The Warm Home Discount provides a one-off £150 reduction on energy bills for eligible households. Previously, only certain Universal Credit claimants qualified. The expansion also includes low-income pensioners receiving the Guarantee Credit component of Pension Credit.
From April, households will see an additional £150 average reduction in energy bills through altered billing methods introduced by the government.
Payment Timeline
Energy suppliers will apply the Warm Home Discount between November and March. The £150 appears either as credit on energy accounts or as top-up vouchers.
British Gas explains on its website: «If you qualify for the winter 2025/26 payment, you will have your one-off £150 discount applied between November 2025 - March 31, 2026 at the latest, with most customers receiving their WHD before January 2026.»
Energy suppliers determine when to implement the reduction within the November to March window. The April bill reduction will be achieved by changing how energy customers are billed.
The measures target households experiencing financial pressures. The broadened eligibility for the Warm Home Discount marks a significant change from previous restrictions on Universal Credit claimants.
Note: This article was created with Artificial Intelligence (AI).
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