DWP announces free £150 payments and 'three million people will benefit'

The warning comes from Your NRG surrounding the Warm Home Discount, which is worth £150.

An expert has urged UK households to check now or miss out as the Department for Work and Pensions ( DWP ) opens its £150 Warm Home Discount. The warning comes from Your NRG surrounding the Warm Home Discount, which is worth £150.

They say: "Around three million households are expected to benefit from the Warm Home Discount, according to the Department for Work and Pensions (DWP). The scheme provides a £150 credit on electricity bills to those on low incomes or receiving Pension Credit, offering much-needed relief during the colder months.

"Importantly, this money is paid directly to the energy provider, not to the individual, ensuring the credit goes towards reducing energy costs." They added: "Eligibility rules changed in 2022, meaning some people who previously qualified may no longer be eligible, while others might now need to apply if they don’t automatically receive the discount.

READ MORE Met Office and BBC Weather speak out over -8C Arctic snow blast reports

"It's crucial that households check their energy provider’s website to confirm when the scheme opens and if they need to take any action. If your supplier provides both gas and electricity, you may even be able to apply the £150 to your gas bill instead – just check with them once the scheme is live.

"For those using Pay As You Go or Prepayment meters, the support will come as a voucher that can be used to top up your meter. This ensures that even customers not on credit accounts can still access this critical help. Additionally, people in Scotland should be aware of the £58.75 Winter Heating Payment and the £151.50 Child Winter Heating Payment, which could provide further support to low-income and disabled households.

“If you’re eligible, you should receive a letter between October and January 2025 explaining your status and whether you need to take further action. If you haven't received this letter by January, check with your supplier or the WHD helpline. Don’t wait until it’s too late, as you may miss out on the £150 credit if action isn’t taken by February 28, 2025.

"With the energy price cap set to rise by 10% this month, it’s more important than ever to ensure you’re accessing all available support. For those relying on the Guarantee Credit element of Pension Credit or facing high energy costs on a low income, this scheme could be a lifeline. Make sure to check the eligibility criteria and reach out to your provider to confirm your status."