People are being urged to stay vigilant as scammers will make you believe you need to apply for the scheme
The government has issued a UK-wide security warning to people on means-tested benefits as claimants lose money from their bank accounts. It comes as the Department for Energy Security and Net Zero (DESNZ) is urging people to stay extra vigilant over the coming months to avoid falling victim to scammers.
From today (Oct 20), the Department for Work and Pensions (DWP) will be posting letters to eligible people across the UK to let them know they will be getting £150 off their energy bills as part of the government’s 2025/26 Warm Home Discount scheme. The funds will be automatically given to energy suppliers to lower the amount that those who qualify need to pay for their bills – money will not be directly given to eligible people.
However, during this period, scammers work hard to make people believe they need to apply for the Warm Home Discount and will get the money directly. Fraudsters trick people into handing over their bank details to steal their money instead of transferring them the ‘£150’.
The DESNZ stresses that there is no need to apply for the scheme. A spokesperson said that if you are sent a text or email about it, it’s a scam. Speaking to the Manchester Evening News, they said: “We’re aware of scam texts claiming to be about the scheme and asking for bank details, so we’re keen for those eligible to know those texts aren’t legitimate and to understand if they need to take any action to get the discount.”
What’s different about this year’s Warm Home Discount?
This winter, an extra 2.7 million households will be eligible for the Warm Home Discount, meaning over six million households will now benefit, helping cut more people’s energy bills. The Warm Home Discount gives £150 off bills, with most households receiving the discount automatically. You can find information on the scheme here: https://www.gov.uk/the-warm-home-discount-scheme.
If you live in England or Wales you will qualify for the Warm Home Discount in 2025/26 if you are the named bill payer on your energy bill, and on one of the means-tested benefits listed below.
- Housing Benefit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Pension Credit
- Universal Credit
If you live in England or Wales, your electricity supplier will automatically apply the discount to your bill. An updated list of participating energy suppliers is available on gov.uk. Those eligible across Great Britain will receive a letter and should wait for it. Letters start to be sent from mid-October but can be received up to December.
If you haven’t received a letter by January or received the rebate directly into your energy account, but think you meet the criteria, you should call the Warm Home Discount helpline. The number will be available on gov.uk when the helpline opens in late October.
How much do people lose to scams?
In 2024, scams in the UK resulted in a £11.4 billion loss, with each victim losing around £1,400 on average, as reported by the Global Anti-Scam Alliance (GASA). However, various sources report different statistics, and the kind of scam plays a crucial role in determining the losses incurred by UK residents. Gov.uk highlights that those who suffer financial losses due to fraud face an average loss of £4,600.
In terms of DWP-themed scams, it’s challenging to determine a precise total for losses due to the fact that the reported figures for benefit-related fraud often underestimate the true amount lost. However, reports from 2019 indicate that criminals may have stolen tens of millions of pounds solely through Universal Credit scams, affecting an estimated 42,000 people at that time.
On a larger scale, the DWP has been actively engaged in efforts to prevent billions in fraudulent claims throughout the welfare system, including £1.9 billion attributed to identity theft. These efforts aim to minimise overall fraud and errors.
Scam awareness:
A spokesperson for the DESNZ said: “Remember – there is no need to apply for the scheme in England or Wales. You will not be contacted by the government or Ofgem asking you to share your bank details to benefit.”
They added: “Do not look out for texts. If you are eligible, you should look out for a letter between October and December confirming you will get £150 off your electricity bill. Do not click on links provided in suspicious texts or emails.”