In one of her final acts as Chancellor, Rachel Reeves has confirmed the Warm Home Discount will return this winter and continue every winter until the end of the Parliament, providing households with £150 rebates on energy bills totalling £750 over five years.
Five-Year Extension Confirmed
The government announced the continuation of the scheme through to 2030/2031, covering payments in 2026-27, 2027-28, 2028-29, 2029-30, and 2030-31. The Department for Work and Pensions stated: "The extension will see eligible households provided with the £150 rebate on their energy bills every winter until 2030/2031."
Ms Reeves is widely expected to be replaced as Chancellor by Andy Burnham when the Makerfield MP succeeds Sir Keir Starmer as Prime Minister tomorrow.
Industry and Charity Reactions
Ned Hammond, Deputy Director, Policy (Customers) at Energy UK, said: "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 added: "The changes in Scotland are also very welcome as it will mean many more customers receiving the discount automatically without having to apply. We now look forward to working with the government on further changes to the scheme, including better targeting and tiered support, to ensure that is both directed to those most in need and provides the right level of assistance to really make a difference for customers struggling to afford bills."
Matt Copeland, Head of Policy and Public Affairs at National Energy Action, said: "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."
Eligibility and Impact
Six million households across Great Britain now receive the discount, and the revised eligibility criteria give greater certainty about who will benefit each year. Copeland emphasised: "It is also essential that support is continuing for energy advice and for measures that reach people who are not within the benefits system. Without this, many households who cannot be identified through government data matching will remain without the help they need."
