High-cost-to-heat threshold removed for Warm Home Discount in England and Wales for winter 2025/26

The Warm Home Discount (Amendment) Regulations 2025 removed the high-cost-to-heat element of eligibility in England and Wales for winter 2025/26, the Department for Energy Security & Net Zero has said¹. The change means households receiving a qualifying benefit no longer have to meet a separate assessment of the cost of heating their home to qualify¹.

Around 6 million households across Great Britain are estimated to receive the rebate this winter, an increase of around 2.7 million on the previous year¹. The rebate is £150, taken directly off an electricity or gas bill, and is funded through a levy on all domestic gas and electricity customers¹. In winter 2023/24, 3.35 million households received the rebate¹. Since the scheme began in 2011, it has provided £4.53bn of support through rebates and Industry Initiatives¹.

The Core Group 2 qualifying benefits for winter 2025/26 include Housing Benefit¹. The government response does not set out the full qualifying benefits list in the text available.

The current scheme period, under the Warm Home Discount (England and Wales) Regulations 2022 and the Warm Home Discount (Scotland) Regulations 2022, ends on 31 March 2026¹. New regulations are required to continue the scheme¹.

A consultation on continuing the scheme 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 has decided to continue the scheme for a new five-year period from 2026/27 to 2030/31¹. In Scotland, the Core Group will be retained but expanded, with eligibility aligned to the same qualifying benefits as the Scottish Winter Heating Payment as of December 2025¹. Additional rebates will be provided by suppliers in the Broader Group on an application basis, targeted at households receiving the Pension Age Disability Payment, the Adult Disability Payment and other households receiving means-tested benefits¹.

Around 96% of qualifying households will continue to receive their rebate automatically through data matching against DWP records¹. The government also decided to retain Industry Initiatives and to retain the inclusion of specified activities in regulations, with participation optional for suppliers¹. It has decided to retain the existing caps¹.

Why it matters for households

For winter 2025/26, households in England and Wales receiving a qualifying benefit no longer need to meet the high-cost-to-heat test to be eligible for the £150 rebate¹. The government estimates around 6 million households across Great Britain will receive it, around 2.7 million more than the previous year¹. Most qualifying households, around 96%, receive the rebate automatically through data matching against DWP records¹.

The scheme is funded by a levy on all domestic gas and electricity customers, so the cost is spread across bills¹. The current regulations end on 31 March 2026¹.

What happens next

The government will lay regulations for the next scheme period to ensure they are in force ahead of winter 2026/27¹. It says this will enable the scheme to continue without interruption and secure support for around 6 million low-income and vulnerable households next winter¹. The reforms set out in the response will take effect from the date the new regulations come into force¹. The government will work with Ofgem, the Scottish Government and stakeholders to finalise operational details and update guidance before implementation¹.

For winter 2026/27, households will be eligible 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.