Pensioners can save £150 on energy bills in just 16 minutes amid Iran crisis

State pensioners could reduce their energy bills by £150 through a scheme linked to Pension Credit, with applications taking an average of 16 minutes to complete.

The Warm Home Discount Scheme will reopen in October 2026, providing eligible households with a one-off discount applied directly to electricity bills.

To qualify, pensioners must be receiving Pension Credit, a benefit from the Department for Work and Pensions (DWP) designed to boost incomes for those on lower earnings.

Once applied, the discount is typically credited to bills by March 31 of the following year.

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Pension Credit is now worth an average of £4,300 a year following a 4.8 per cent increase introduced on April 6.

Under the 2026/27 rates, single pensioners can have their weekly income topped up to £238, while couples can receive up to £363.25.

DWP has updated its application process, with most new claims submitted either online or by telephone.

The department said: "Pension Credit provides a lifeline in retirement to pensioners on low incomes, providing access to additional support, including housing costs, council tax and the Winter Fuel Payment."

For households in England and Wales, the £150 discount is applied automatically if the bill payer receives the Guarantee Credit element of Pension Credit.

Those not receiving Guarantee Credit may still qualify if they claim other means-tested benefits, including Housing Benefit, income-related Employment and Support Allowance, income-based Jobseeker’s Allowance, Income Support, Savings Credit or Universal Credit.

From winter 2026/27, the scheme will move to a single Core Group, replacing the current two eligibility groups.

In Scotland, eligibility rules will differ slightly from winter 2026/27.

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Households will receive the discount automatically if one member is named on the electricity bill, receives any element of Pension Credit and qualifies through additional criteria such as having a child under five or receiving a disability-related payment.

The Department for Energy Security and Net Zero (DESNZ) confirmed the scheme will continue for a further five years until winter 2030/31.

This means eligible households could save up to £750 over that period if they continue to qualify each year.

A total of 28 energy suppliers are part of the scheme, including British Gas, E.ON Next, EDF, Octopus Energy, OVO and ScottishPower.

The Department for Energy Security and Net Zero said: "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."

Labour said it is working with Ofgem and the Scottish Government to finalise details ahead of implementation.

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