The Department for Energy Security and Net Zero (DESNZ) has proposed continuing the Warm Home Discount scheme for a further five years, from winter 2026 to 2027 to winter 2030 to 2031, according to a consultation issued on 25 September 20251. The current scheme period ends on 31 March 2026, and the existing regulations, the Warm Home Discount (England and Wales) Regulations 2022 and the Warm Home Discount (Scotland) Regulations 2022, also end on that date1. New regulations are required to continue the scheme1.
The scheme has provided £4.53bn in rebates to low-income and vulnerable households, and support through Industry Initiatives, since 20111. In winter 2023 to 2024, 3.35 million households were supported through a £150 rebate taken directly off their electricity or gas bill1. For winter 2025 to 2026, with the removal of the high-cost-to-heat threshold for recipients of qualifying benefits in England and Wales, around 6 million households are expected to receive the rebate across Great Britain, an increase of around 2.7 million on the previous year1. The qualifying date for winter 2025 to 2026 was 24 August 20251.
The scheme applies across Great Britain, with some differences in how it operates in England and Wales compared with Scotland, and is not available in Northern Ireland, where separate support is available1. Domestic energy suppliers with over 1,000 domestic customers are obligated to participate1. The consultation also proposes a new approach to estimating spend each year, based on the expected number of households eligible for rebates1.
"We propose continuing the Warm Home Discount Scheme, supporting households at risk of fuel poverty for the next scheme period which is anticipated to run for five years from winter 2026 to 2027 to winter 2030 to 2031."
Consumer Scotland, responding to the consultation on 21 November 2025, said it supported continuation and recommended automatic data matching for Broader Group consumers in Scotland2. It said the application-based design of the Broader Group in Scotland from 2022 to 2025 created additional access barriers for eligible Scottish households compared with England and Wales2. It also said some consumers who received the discount in previous years may no longer receive it if the government adopts Option 2 or Option 3 for Scotland2.
Consumer Scotland said the discount has increased from £120 to £150 since 2011, an increase of 25%, while typical annual bills have risen from £1,118 to £1,755, an increase of 57%2. It said the discount is not indexed in any way2. It also said the impact assessment for the proposed scheme highlights that it is only expected to reach 45% of fuel poor households from scheme year 2025/26 onwards2.
| Item | Figure |
|---|---|
| Rebate per eligible household | £1501 |
| Households expected to receive rebate, winter 2025 to 2026 | Around 6 million across Great Britain1 |
| Households supported, winter 2023 to 2024 | 3.35 million1 |
| Total rebates and Industry Initiatives support since 2011 | £4.53bn1 |
| Scottish rebates, 2023 to 2024 | Around 280,000 across Core and Broader Groups1 |
Why it matters for households
The current regulations end on 31 March 2026, so without new regulations the scheme would not continue beyond winter 2025 to 20261. The proposal covers a five-year period from winter 2026 to 2027 to winter 2030 to 20311. The £150 rebate is taken directly off an eligible household's electricity or gas bill1. Most eligible Core Group 1 and 2 customers in England and Wales, and Core Group customers in Scotland, are identified through automatic data matching and receive the rebate automatically1. Consumer Scotland said 96% of consumers receive the rebate without needing to take any action, and that 4% who are not automatically matched may still include vulnerable households2.
On 5 April 2025, Child Tax Credit and Working Tax Credit became legacy benefits and were removed as qualifying benefits for winter 2025 to 20261. The Core Group 2 qualifying benefits for winter 2025 to 2026 are Housing Benefit, Income-related Employment and Support Allowance, Income-based Jobseeker's Allowance, Income Support, the Savings Credit element of Pension Credit, and Universal Credit1. Consumer Scotland said the WHD is due to increase to an average cost of £37 per year for a typical dual fuel billpayer2.
What happens next
The consultation was issued on 25 September 2025 with a deadline for responses of 20 November 20251. DESNZ said it will lay regulations in time to ensure the scheme is in place for the next scheme period, commencing winter 2026 to 20271. Consumer Scotland recommended that governments provide further detailed impact analysis of Options 2 and 3 before any informed decision is taken on which scheme should be chosen2. It also recommended that any automatic data matching approach include a commitment to deliver payments between November and January2.
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