The Department for Energy Security and Net Zero published its response to the consultation on continuing the Warm Home Discount on 30 January 2026, confirming a new five-year scheme period from 2026/27 to 2030/311. The current scheme period ends on 31 March 2026, and new regulations are required to continue it1.
The consultation ran from 25 September to 20 November 2025 and received 93 responses, of which 84 (90 per cent) came from organisations and nine (10 per cent) from individuals1. The Government said 97 per cent of those who answered the first question supported continuing the scheme, and 78 per cent of those answering the relevant question supported merging the two automatically data-matched groups1.
In England and Wales, the current Core Group 1 and Core Group 2 will be merged into a single Core Group, retaining the expanded eligibility criteria introduced for 2025/261. That expansion, made through the Warm Home Discount (Amendment) Regulations 2025, removed the high-cost-to-heat element of eligibility1. The Government said around 96 per cent of qualifying households will continue to receive their rebate automatically through data matching against DWP records1.
In Scotland, the Core Group will be retained but expanded so that more households qualify through automatic data matching, aligned to the same qualifying benefits list as the Scottish Winter Heating Payment as of December 20251. Additional rebates will be provided by suppliers through the Broader Group on an application basis, targeted at households receiving the Pension Age Disability Payment, the Adult Disability Payment and other households on means-tested benefits1.
The Government also decided not to proceed with expanding the existing Park Homes Warm Home Discount Scheme1. Industry Initiatives will be retained across England, Wales and Scotland, with funding increased in line with inflation, and the fixed annual spending target in regulations will be replaced by annual estimates reflecting the number of eligible households1.
"Since its inception in 2011, the Warm Home Discount has provided £4.53bn of support to low-income and vulnerable households"
The scheme provides £150 energy bill rebates, funded through a levy on all domestic gas and electricity customers1. In winter 2023/24, 3.35 million households received a rebate1. For winter 2025/26, around 6 million households across Great Britain are estimated to receive it, an increase of around 2.7 million on the previous year1.
| Nation | Core Group position from 2026/27 |
|---|---|
| England and Wales | Single Core Group, retaining 2025/26 expanded eligibility1 |
| Scotland | Core Group retained and expanded, aligned to Scottish Winter Heating Payment qualifying benefits as of December 20251 |
Why it matters for households
The rebate is taken directly off an electricity or gas bill, so it reduces the amount a household pays rather than paying money out separately1. Because most qualifying households are identified automatically through DWP records, the Warm Home Discount does not depend on an application for the majority of recipients, though the Scottish Broader Group continues to work on an application basis1. Eligibility rules determine who receives the £150, and the qualifying criteria for the next period keep the 2025/26 position in England and Wales rather than widening it further1. The scheme sits alongside other support, including the Winter Fuel Payment and proposals for an energy social tariff, and it is separate from capital grant schemes such as the Boiler Upgrade Scheme and the Great British Insulation Scheme, which fund installation work rather than bill reductions. For a household's energy independence, the rebate lowers the cost of the energy it already uses; it does not change how much energy the home needs. The Government noted that many respondents said the scheme alone cannot solve fuel poverty and called for it to form part of a broader long-term strategy1.
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 continue the scheme without interruption for around 6 million households1. It also said it will work with Ofgem on governance, administration and reporting for Industry Initiatives, and will allow the Secretary of State to issue rebate notices after the end of a scheme year in cases of administrative or data-matching errors1. Further changes, including tiered or increased rebates and broader eligibility, are to be explored during the next scheme period; no decisions on those have been reported1.