Warm Home Discount to Reopen Under New PM
The Department for Work and Pensions (DWP) has confirmed that the Warm Home Discount scheme will reopen in October 2026, despite the change in government leadership with Andy Burnham becoming Prime Minister. The Labour Party government initiative will provide automatic £150 payments to eligible households.
Eligibility Criteria for England and Wales
Qualification for the Warm Home Discount varies by location. In England and Wales, claimants qualify if they receive the Guarantee Credit element of Pension Credit from the DWP, or are on a low income and claim Housing Benefit, income-related Employment and Support Allowance (ESA), income-based Jobseeker’s Allowance (JSA), Income Support, the Savings Credit part of Pension Credit, or Universal Credit.
The DWP explains: "If you do not get the Guarantee Credit element of Pension Credit, you may still be eligible for the Warm Home Discount. You may be eligible if all of the following applied on 24 August 2025: your energy supplier is part of the scheme, you (or your partner) get certain means-tested benefits or your name (or your partner’s) is on the electricity bill. This is known as being in the ‘core group 2’." Your electricity supplier will apply the discount to your bill; the money is not paid directly to you.
Cost of Living Focus and Energy Policy Shift
Mr Burnham has reportedly made the cost of living a key part of his thinking as he draws up plans for policies when he enters power on Monday. He will take over from Sir Keir Starmer and is expected to relax the government’s restrictions on new oil and gas drilling, according to reports. A decision to grant new licences for the practice in the North Sea would mark a departure from Labour’s 2024 manifesto, in which it pledged to honour existing licences but not issue new ones.
Green Party Criticism
The Green party criticised the possibility of new licences on Saturday, with MP Adrian Ramsay saying: “Words are no substitute for actions on the climate crisis. With heatwaves causing deaths, wildfires and extreme weather across the country, approving new oil and gas drilling is exactly the wrong response and will do nothing to bring down energy bills. The science is clear: if we are serious about limiting climate breakdown, we cannot keep opening up new fossil fuel projects. Greens support a just transition that protects workers and communities while accelerating investment in renewable energy, not doubling down on the fuels driving the crisis.”
