Consultation on continuing the Warm Home Discount Scheme opens

The Department for Energy Security and Net Zero has decided to continue the Warm Home Discount for a new five-year scheme period running from 2026/27 to 2030/31, according to its consultation response published on 30 January 2026¹. The current scheme period ends on 31 March 2026 and new regulations are required to continue it¹.

The consultation ran from 25 September 2025 to 20 November 2025 and received 93 responses, of which 84 (90%) came from organisations and 9 (10%) from individual members of the public¹. The government said it would proceed with its proposals:

In England and Wales, the current Core Group 1 and Core Group 2 will be merged into a single Core Group, retaining the expanded eligibility criteria introduced for 2025/26¹. The government said around 96% of qualifying households will continue to receive their rebate automatically through data matching against Department for Work and Pensions records¹. In Scotland, the Core Group will be retained but expanded, with eligibility aligned to the same qualifying benefits list as the Scottish Winter Heating Payment as of December 2025¹. Additional rebates will be provided by suppliers in the Broader Group on an application basis¹.

Industry Initiatives will be retained in the next scheme period, with participation in specified activities remaining optional for scheme energy suppliers¹. The government also decided to retain the existing caps¹. Funding for Industry Initiatives will be increased in line with inflation, and the method for estimating scheme costs will change from a fixed annual spending target set out in regulations to annual estimates reflecting the number of eligible households¹.

The scheme is funded through a levy on all domestic gas and electricity customers and provides £150 energy bill rebates¹. Since its inception in 2011, it has provided £4.53bn of support to low-income and vulnerable households through rebates and Industry Initiatives¹. In winter 2023/24, 3.35 million households were supported through a £150 rebate¹. This winter 2025/26, with the removal of the high-cost-to-heat threshold for recipients of qualifying benefits in England and Wales, around 6 million households are estimated to receive the rebate across Great Britain, an increase of around 2.7 million on the previous year¹.

The scheme applies across Great Britain, with differences in how it operates in England and Wales compared with Scotland². It is not available in Northern Ireland, where separate support is available². Domestic energy suppliers with over 1,000 domestic customers are obligated to participate².

Why it matters for households

Households will be eligible for the rebate on their energy bill from winter 2026/27 if the person named on the energy bill, or their partner or legal representative, is in receipt of a qualifying benefit on the qualifying date for that scheme year¹. The qualifying date for winter 2025/26 was 24 August 2025². The government said the vast majority of qualifying households, around 96%, will continue to receive their rebate automatically through data matching against DWP records¹.

The consultation drew calls from respondents to increase the rebate amount, expand eligibility and improve targeting, and concerns were raised about the fairness of funding the scheme through energy bills¹. The government said it acknowledges calls for the scheme to form part of a broader long-term strategy to tackle fuel poverty and will continue exploring improvements to its reach and targeting during the next scheme period¹. It also said it will explore expanding the role of suppliers in communications with eligible consumers¹.

What happens next

The government will lay regulations for the next scheme period to ensure they are in force ahead of winter 2026/27¹. The reforms set out in the response will take effect from the date the new regulations come into force¹. The government said it will continue to work with Ofgem, the Scottish Government and stakeholders to finalise operational details, update guidance and communicate changes in advance of implementation¹. It will also allow the Secretary of State to issue rebate notices after the end of the scheme year in cases of errors in administration or data matching¹.