UK Expands Warm Home Discount, Adds Millions to Energy Bill Support

The UK government is providing significant support to millions of households facing high energy costs in 2025 through two main programs. The Warm Home Discount scheme has been expanded to include around six million households, with an additional 2.7 million added this year, offering a £150 discount on energy bills to low-income individuals receiving certain means-tested benefits, including Pension Credit claimants who receive the discount automatically. Eligibility has been broadened by removing previous thresholds if a recipient of a means-tested benefit is named on the energy bill, though some may need to apply through their energy supplier. Separately, the Winter Fuel Payment offers up to £300 to around nine million pensioners and benefit claimants to assist with heating costs during winter, with eligibility widened to include those earning £35,000 or less annually and automatic payments for those on specific benefits. Ofgem’s chief executive has warned that the transition to cleaner energy risks increasing costs for lower-income households unless a systematic approach is taken to share the financial burden fairly, potentially through differentiated charges based on income. These combined efforts represent the government’s response to rising energy costs and the need to protect vulnerable populations during the energy transition.