Thousands of energy customers are set to receive a bonus payment to help support their winter bill costs.

British Gas confirmed that it will apply the £150 government Warm Home Discount to customers' electricity accounts in the form of credit. Meanwhile, pay-as-you-go customers will receive a voucher which can be provided to your local Post Office to top up your energy meter.

The energy firm also said it will directly send credit to a customer's meter if they have a Pay As You Go smart meter. However, if British Gas cannot give the discount to a customer's meter directly, they will send the voucher in the post, ensuring that all kinds of customers can benefit.

What is the Warm Home Discount?

The Warm Home Discount is a government-led energy scheme that provides discounts of up to £150 on eligible customers' energy bills. If you're found to be eligible for the discount, you should receive it automatically. However, in some cases, you may need to contact your energy supplier to apply, such as if you're low-income in Scotland.

You can receive the Warm Home Discount if you either receive the Guarantee Credit element of Pension Credit or are on a low income and have energy costs (or meet your supplier's criteria for the scheme in Scotland). The discount is not available for billpayers in Northern Ireland.

Eligibility for those who get the Guarantee Credit element of Pension Credit

This is known as being in the core group 1 in England and Wales or the core group in Scotland.

This letter will detail your eligibility as well as any additional information you need to provide. The Department for Work and Pensions (DWP) is reportedly working with participating suppliers to help identify those in core group 1 so they can automatically receive the discount.

Eligibility for those on low income

You can qualify for the warm home discount if you receive one of the following benefits and tax credits:

  • Housing Benefit
  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker’s Allowance (JSA)
  • Income Support
  • The ‘Savings Credit’ part of Pension Credit
  • Universal Credit
  • Child Tax Credit
  • Working Tax Credit

In this case, your household must have a high energy cost score. According to the government, this isn't based on your actual energy costs but is instead calculated based on your property's type, age, and floor area.

How to check eligibility

Generally, the government allows you to check if you're eligible through their website. However, the Warm Home Discount scheme is still set to launch in October of this year, which means services to check eligibility are not yet available.

The government website confirms: "You will be able to use this service from October 2024."