State pensioners on one DWP benefit get £150 off automatically

State pensioners can get £150 off their energy bills automatically with a single claim to the Department for Work and Pensions (DWP). The average household gas and electricity bill went up by 13% in July as Ofgem's new energy price cap took effect, taking annual bills to £1,862 - a rise of £221. The increase was largely driven by a spike in global energy wholesale prices due to the conflict in the Middle East, meaning households who pay via direct debit now face electricity charges of 26.11p per kWh and gas charges of 7.33 per kWh.

Unfortunately, forecasts suggest bills will remain high throughout the winter with analysts Cornwall Insight predicting a typical household bill of £1,849 from October. But for some pensioners on a low income, it's possible to automatically cut energy bills by £150 thanks to the DWP benefit Pension Credit.

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy

Pension Credit provides extra cash to people who have reached State Pension age and are on a low income, and thanks to a 4.8% uplift in April, the benefit is now worth an average of £4,300 per year.

In the 2026 to 2027 tax year, single claimants can top up their income to £238 per week, or their joint weekly income to £363.25 per week if you have a partner, but if you qualify for Pension Credit, you can also unlock access to further financial support - including a £150 cut to your energy bills.

Pensioners in England, Wales and Scotland who are on a low income and get the Guarantee Credit element of Pension Credit are eligible for help with heating costs through the Warm Home Discount Scheme.

The scheme provides a one-off £150 discount off electricity bills which is applied automatically by your electricity supplier and is due to reopen in October 2026, with the discount to be applied to bills by March 31 the following year.

Currently, 28 energy suppliers are part of the Warm Home Discount Scheme including major firms like British Gas, E.ON Next, EDF, Octopus Energy, OVO and ScottishPower, so eligible customers of these suppliers are in line to get £150 off their energy bills from October.

The Department for Energy Security and Net Zero (DESNZ) confirmed earlier this year that the Warm Home Discount Scheme will be extended in England, Wales and Scotland for a further five years to winter 2030/31.

The DESNZ said the existing eligibility criteria will be retained in England and Wales for a further five years, and the current Core Group 1 and 2 will be merged into a single Core Group.

Currently, households in England or Wales qualify for the £150 discount automatically if they are the named billpayer on their energy bill and get the Guarantee Credit element of Pension Credit. This is known as ‘Core Group 1’.

Those who don’t get the Guarantee Credit element of Penson Credit may still be eligible if they are the named billpayer on their energy bill and receive any of the following means-tested benefits:

This is known as ‘Core Group 2’. As of winter 2026/27, these two core groups will be merged into a single group.

As for those in Scotland, the discount is currently only automatic for those who get the Guarantee Credit element of Pension Credit. But as of winter 2026/27, Scottish households will get the £150 bill help automatically if, on the qualifying date in August 2026 all of the following apply:

you get one of the following means-tested benefits and meet other conditions, such as having a child under the age of five or you get a disability related uplift as part of your benefit:

Energy providers in Scotland will also have to allow some households in receipt of certain benefits to apply for the discount but the criteria will vary by supplier and this is yet to be confirmed.

The DESNZ said: “The Government will lay regulations for the next scheme period to ensure the regulations are in force ahead of winter 2026/27. This will enable the continuation of the scheme without interruption, securing continued support for around 6 million low-income and vulnerable households next winter and providing certainty for suppliers and delivery partners.”