Millions to Receive £150 Warm Home Discount
Andy Burnham's government has confirmed that six million households will receive a £150 Warm Home Discount this winter, on top of the recently announced VAT cut. The VAT reduction, unveiled by the new Labour Party Prime Minister on Monday, will save households an additional £45. Combined, the measures provide significant relief for low-income and vulnerable households facing high energy costs.
Expanded Eligibility for Warm Home Discount
The Warm Home Discount, a key policy to tackle fuel poverty, provides £150 rebates on electricity or gas bills. For winter 2025/26, the removal of the high-cost-to-heat threshold for recipients of qualifying benefits in England and Wales means around 6 million households are expected to receive the rebate—an increase of approximately 2.7 million compared to the previous year. In winter 2023/24, 3.35 million households benefited from the scheme.
Who Qualifies for the Support
The Warm Home Discount is available to people receiving Pension Credit, Housing Benefit, income-related Employment and Support Allowance (ESA), income-based Jobseeker's Allowance (JSA), Income Support, and Universal Credit. Since its launch in 2011, the scheme has provided £4.53 billion in support through rebates and industry initiatives.
Expert Reactions to the Announcement
Adam Scorer, Chief Executive of National Energy Action, said: "It’s hugely positive that across Great Britain, many more low-income households on means-tested benefits will get some direct support to tackle unaffordable bills and record energy debts this winter. Vitally, this includes many more low-income working-age households with children, who are living with the daily consequences of not having access to enough energy at home."
Andrew Sissons, Deputy Director of Sustainable Future at Nesta, added: "Extra help for those households most in need is an important part of the energy bill system, and this change will go some way to help make energy bills fairer and more affordable for many this winter."
Impact on Fuel Poverty
The expanded Warm Home Discount is expected to significantly reduce fuel poverty for millions of low-income families. The VAT cut, effective from October 1, provides immediate savings, while the rebate offers direct financial assistance during the coldest months. The government estimates that the combined measures will help households manage rising energy costs and reduce debt.
