The government has confirmed the return of the £150 Warm Home Discount for 2026/27, with the scheme extended for a further four years, bringing the total support to £750 for eligible households. The announcement was made under Prime Minister Andy Burnham, who now oversees the automatic discount for households in England and Wales.
Eligibility for the £750 support
Households in receipt of four benefits from the Department for Work and Pensions (DWP) will qualify for the discount. These benefits are Housing Benefit, Income-related Employment and Support Allowance (ESA), Pension Credit, and Universal Credit. The discount is applied automatically to energy bills, providing direct financial relief during the winter months.
Ed Miliband, speaking at the time of the extension, said: "Tackling the affordability crisis is the government’s number one priority. That is why we are today confirming to millions of eligible families across the country that they will receive the £150 Warm Home Discount every winter for the rest of the decade."
Industry and charity reaction
Ned Hammond, Deputy Director of Policy (Customers) at Energy UK, welcomed the confirmation, stating: "It’s very good news to see confirmation that the Warm Home Discount will be in place until the end of the decade which, particularly with the recent expansion, will provide continuing vital support with energy bills to millions of customers." He also noted that changes in Scotland are welcome, as more customers will receive the discount automatically without needing to apply.
Matt Copeland, Head of Policy and Public Affairs at National Energy Action, added: "The 5-year continuation of the Warm Home Discount is welcome news for low-income households and provides support that extends beyond this parliament. Alongside energy advice and wider support to help maximise people’s incomes, directly reducing energy bills can be a vital lifeline for vulnerable people who cannot keep their homes adequately warm."
Future of the scheme
The extension ensures the discount remains in place until the end of the decade, providing long-term certainty for eligible families. Energy UK looks forward to working with the government on further changes, including better targeting and tiered support, to ensure assistance reaches those most in need and provides the right level of help for customers struggling to afford bills.
The announcement follows a proposed council tax cut for 19 million households under Andy Burnham, as part of broader efforts to address the cost-of-living crisis. The Warm Home Discount extension is expected to benefit millions of households across England and Wales, with automatic payments reducing the need for applications.
