For many families across the UK, the cost-of-living crisis has made even the basics feel like luxuries.
But a new rule change by the Department for Work and Pensions (DWP) is bringing a rare moment of relief — nearly three million low-income households are set to receive a free £150 payment, aimed at easing financial pressure and supporting the most vulnerable. The one-off payment, part of the Warm Home Discount Scheme, will be automatically applied to eligible households this year.
The revised eligibility criteria mean that more people — especially working families, pensioners, and disabled individuals — will now benefit from this support without needing to apply. “I burst into tears when I got the letter,” says Mrs. Adeola Ogunbiyi, a retired care worker from Birmingham.
“Things have been tight lately. With the £150, I can finally keep the heating on a little longer and buy extra groceries without skipping meals.”
For Adeola, who lives alone and suffers from arthritis, warmth is not just a comfort — it's a necessity. Her story echoes that of many others who live in quiet dignity but face difficult choices every day.
The Warm Home Discount has existed for years, but under the updated DWP criteria, the scheme is now more targeted, and data driven. If you're receiving Pension Credit, Income-related ESA, Universal Credit, or similar benefits, and your home is classed as energy-inefficient, you're likely to qualify.
The payment is usually applied as a discount directly to your electricity bill between October and March. At the Phoenix Community Café in Smethwick, local volunteers say the news has sparked hope.
“It’s not just about the money,” explains Aunty Maureen, who runs weekly budgeting classes.
“It’s a sign that someone out there remembers the people at the bottom. That emotional lift goes a long way.”
Young mum Tanya Boateng, who juggles night shifts and childcare, agrees. “Every penny counts when you’re raising kids in this economy.
“That £150 means I can top up my prepay meter and still get school shoes next month.” While the payment is welcome, charities warn it's a short-term fix.
Citizens' Advice and other support groups continue to call for more sustainable policies — particularly in areas such as energy prices, housing benefits, and childcare support. “People are grateful, of course,” says Imran Khalil, a local welfare adviser.
“But what they really need is long-term affordability and the dignity of being able to live without fear of the next bill.” Eligible households should receive a letter between October and January.
You can also check your eligibility and update your details through the government’s Warm Home Discount website or by contacting your energy provider.
By: Kunle Aderemi – Editor, The Phoenix Newspaper
