The Department for Work and Pensions (DWP) is warning people to be extra vigilant in the coming months
The government has issued a nationwide security warning to millions of people – especially those on means-tested benefits, as claimants have been losing money from their bank accounts. The Department for Energy Security and Net Zero (DESNZ) is encouraging people to act very carefully in the coming months to avoid falling prey to fraudsters.
Starting today (Oct 20), the Department for Work and Pensions (DWP) will be sending out letters to eligible people across the country, informing them that they will receive a £150 reduction on their energy bills as part of the government’s 2025/26 Warm Home Discount scheme. The funds will be automatically allocated to energy suppliers to decrease the amount that qualifying households need to pay for their bills – the money will not be directly given to people.
However, during this time, scammers are working tirelessly to convince people that they need to apply for the Warm Home Discount and that they will receive the money directly. These fraudsters trick people into giving away their bank details, stealing their money instead of transferring them the ‘£150’.
The DESNZ emphasises that there is no need to apply for the scheme. A spokesperson said that if you ever get 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 new with this year’s Warm Home Discount?
This winter, an additional 2.7 million households will be eligible for the Warm Home Discount, bringing the total to over six million households that can now benefit, helping to reduce more people’s energy bills. The Warm Home Discount provides a £150 reduction on 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 reside 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.
For those living 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. Eligible individuals 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 believe you meet the criteria, you should ring 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, UK scams led to a staggering loss of £11.4 billion, with each victim parting with an average of £1,400, according to the Global Anti-Scam Alliance (GASA). However, different sources report varying figures, and the type of scam significantly influences the losses suffered by UK residents.
Gov.uk points out that those who fall prey to fraud face an average loss of £4,600. When it comes to scams themed around the Department for Work and Pensions (DWP), it’s tricky to pin down an exact total for losses. This is because the reported figures for benefit-related fraud often don’t reflect the true amount lost.
However, 2019 reports suggest that criminals may have pocketed tens of millions of pounds solely through Universal Credit scams, impacting an estimated 42,000 people at that time. On a broader scale, the DWP has been actively working to prevent billions in fraudulent claims across the welfare system, including £1.9 billion linked to identity theft. These efforts are geared towards reducing overall fraud and errors.
‘Be aware of the scams’
A spokesperson for the DESNZ issued a warning: “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 further advised: “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.”