The Department for Energy Security and Net Zero has confirmed it will continue the Warm Home Discount for a new five-year scheme period running from 2026/27 to 2030/31. The consultation on the scheme's continuation ran from 25 September 2025 to 20 November 2025 and received a total of 93 responses1. The current scheme period ends on 31 March 2026, and new regulations are required to continue it1.
Of the 93 responses, 84 (90%) came from organisations and 9 (10%) from individual members of the public. Advocacy groups, consumer groups and charities were the most common organisational respondents, followed by local authorities and public bodies, and energy suppliers1. The government reports that 97% of those answering the first question supported continuing the scheme, and 78% of those answering the relevant question supported merging the automatically data matched Core Group 1 and Core Group 21.
The scheme provides £150 energy bill rebates, funded through a levy on all domestic gas and electricity customers. Since it began in 2011 it has provided £4.53bn of support, and in winter 2023/24 alone 3.35 million households received a £150 rebate taken directly off their electricity or gas bill1. For winter 2025/26, following the removal of the high-cost-to-heat element of eligibility in England and Wales, around 6 million households across Great Britain are estimated to receive the rebate, an increase of around 2.7 million on the previous year1.
In England and Wales, the government will merge Core Group 1 and Core Group 2 into a single Core Group, retaining the expanded eligibility criteria from 2025/26. Around 96% of qualifying households will continue to receive their rebate automatically through data matching against Department for Work and Pensions records1. In Scotland, the Core Group will be retained but expanded, with eligibility aligned to the same qualifying benefits list as the Scottish Winter Heating Payment as of December 2025. Additional rebates will be provided by suppliers in the Broader Group on an application basis1.
The government also decided not to proceed with the expansion of the existing Park Homes Warm Home Discount Scheme1.
"Continue the Warm Home Discount Scheme for a new 5-year scheme period from 2026/27 to 2030/31"
Why it matters for households
The rebate is taken directly off an electricity or gas bill, so it reduces what a household pays rather than paying money out separately. Because the scheme is funded by a levy on all domestic gas and electricity customers, the cost of the rebates is spread across bills generally, a point the government notes drew concerns about fairness during the consultation1.
For a household that qualifies, the practical effect is a £150 reduction in a winter bill, delivered automatically for most people in England and Wales through data matching, meaning no application is needed in the large majority of cases1. Who qualifies for the Warm Home Discount? depends on receipt of a qualifying benefit on the qualifying date for the scheme year, or on being the partner or legal representative of the person named on the bill1. Households in Scotland who are not matched automatically may need to apply through their supplier's Broader Group1.
The scheme's continuation to 2030/31 gives a settled five-year window, which matters for households planning winter budgets and for the suppliers and charities that deliver the Industry Initiatives element, through which suppliers provide additional energy-related and financial measures directly or via third-party partners such as charities1.
What happens next
The government will lay regulations for the next scheme period so that they are in force ahead of winter 2026/27, which it says will enable the scheme to continue without interruption and secure support for around 6 million low-income and vulnerable households next winter1. The government also states it will change the method for estimating scheme costs from a fixed annual spending target set out in regulations to annual estimates reflecting the number of eligible households, with funding for Industry Initiatives increased in line with inflation1. It will allow the Secretary of State to issue rebate notices after the end of the scheme year in cases of errors in administration or data matching1. Further changes, including tiered or increased rebates and broader eligibility, are described as matters the government will continue to explore during the next scheme period; no decisions on those have been reported1.