State pensioners handed 'automatic' free £150 to help them through winter

State pensioners will get some respite with the Warm Home Discount scheme set to reopen in October, with around three million households expected to benefit from the £150 credit on electricity bills.
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State pensioners are set to be handed an "automatic" £150 payment from the Department for Work and Pensions - after the Winter Fuel Allowance was scrapped by the DWP and new Labour Party government, thanks to Chancellor Rachel Reeves.

State pensioners will get some respite with the Warm Home Discount scheme set to reopen in October, with around three million households expected to benefit from the £150 credit on electricity bills. A spokesperson for heating specialists Your NRG explained: "With the Warm Home Discount Scheme reopening in October, around three million households are expected to benefit, 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. 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. 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.

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"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."

The experts at Your NRG added: “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% in October, 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."