The Department for Energy Security & Net Zero confirmed on 30 January 2026 that the Warm Home Discount will continue for a new five-year scheme period running from 2026/27 to 2030/311. The current scheme period ends on 31 March 2026, and the department said new regulations are required to continue it1.
The scheme provides £150 energy bill rebates, funded through a levy on all domestic gas and electricity customers1. Since it began in 2011 it has provided £4.53bn of support through rebates and Industry Initiatives, and in winter 2023/24 alone 3.35 million households received a £150 rebate taken directly off their electricity or gas bill1. This winter, 2025/26, around 6 million households across Great Britain are estimated to receive the rebate, an increase of around 2.7 million on the previous year, after the removal of the high-cost-to-heat threshold for recipients of qualifying benefits in England and Wales1.
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 set out its decisions in response:
"Continue the Warm Home Discount Scheme for a new 5-year scheme period from 2026/27 to 2030/31 , recognising overwhelming support for its crucial role in tackling fuel poverty"
| Decision | Detail |
|---|---|
| England and Wales | Core Group 1 and Core Group 2 merged into a single Core Group, retaining the expanded eligibility criteria from 2025/261 |
| Scotland | Core Group retained but expanded, with eligibility aligned to the same qualifying benefits as the Scottish Winter Heating Payment as of December 20251 |
| Industry Initiatives | Retained and strengthened across England, Wales and Scotland1 |
| Specified activities | Retained in regulations; participation remains optional for scheme energy suppliers1 |
| Scheme cost estimates | Changed from a fixed annual spending target in regulations to annual estimates reflecting the number of eligible households, with Industry Initiatives funding increased in line with inflation1 |
The Government said around 96% of qualifying households will continue to receive their rebate automatically through data matching against DWP records1. Households will be eligible for the rebate 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. In Scotland, additional rebates will be provided by energy 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 on means-tested benefits1.
The Government also said it will allow the Secretary of State to issue rebate notices after the end of the scheme year in cases of errors in administration or data matching, and will explore expanding the role of suppliers in communications with eligible consumers1.
Why it matters for households
The scheme's continuation means the £150 rebate is set to remain available for a further five winters, with the reforms taking effect from the date the new regulations come into force1. In England and Wales, the merger of the two Core Groups means a single set of eligibility rules, retaining the expanded criteria introduced for 2025/26, when the high-cost-to-heat element was removed1. In Scotland, more households are expected to qualify through automatic data matching, with the Broader Group continuing on an application basis1.
The change to cost estimation means funding is no longer fixed by an annual spending target in regulations but will be estimated annually according to the number of eligible households, with Industry Initiatives funding rising in line with inflation1. The scheme remains funded through a levy on all domestic gas and electricity customers, so the cost is spread across bills1. The Government acknowledged calls from respondents to increase the rebate amount, expand eligibility and integrate the scheme into a broader long-term fuel poverty strategy, and said it will continue exploring improvements during the next scheme period1.
What happens next
The Government will lay regulations for the next scheme period to ensure they are in force ahead of winter 2026/27, which it said will enable the scheme to continue without interruption and secure support for around 6 million low-income and vulnerable households next winter1. It will work with Ofgem, the Scottish Government and stakeholders to finalise operational details, update guidance and communicate changes before implementation1. Further detail on eligibility and how the rebate is paid is set out in the guide to the Warm Home Discount and other help with energy bills, and related support is covered in the benefits section.
Turn2usFree benefits calculator and grants search from a charity
Citizens AdviceFree advice on money, consumer and legal problems in England and Wales
GOV.UKOfficial information on tax, benefits and government services
MoneyHelperFree, impartial money and pensions guidance, set up by government