The Warm Home Discount (England and Wales) Regulations 2026 came into force on 1st April 2026, continuing the Warm Home Discount Scheme in England and Wales until 31st March 20301. The instrument was made on 27th March 2026 under sections 9, 10, 14(4) and 31(5) and (6) of the Energy Act 2010, with the consent of the Treasury, and followed consultation with the Gas and Electricity Markets Authority, licensed electricity and gas suppliers and the Information Commissioner1. A draft was laid before and approved by resolution of each House of Parliament1.
The scheme period runs from the commencement day to 31st March 2031, and is divided into scheme years. Scheme year 16 runs from commencement to 31st March 2027; scheme years 17 to 20 are each a period of 12 months beginning with 1st April in the years 2027 to 20301. The prescribed rebate is £1501. The aggregate non-core spending obligation is set by scheme year:
| Scheme year | Aggregate non-core spending obligation |
|---|---|
| 16 | £78 million |
| 17 | £80 million |
| 18 | £81 million |
| 19 | £83 million |
| 20 | £84 million |
Source: The Warm Home Discount (England and Wales) Regulations 20261
A licensed electricity supplier is a compulsory scheme electricity supplier for a scheme year if it supplied electricity to GB domestic customers on 31st December preceding the start of that year and meets the customer-number condition, which the regulations set at at least 1,000 GB domestic customers on that date1. A licensed gas supplier is a scheme gas supplier where it supplied gas to GB domestic customers on 31st December preceding the start of the scheme year and meets the equivalent condition1. Suppliers must notify the Authority of their number of GB domestic customers on the preceding 31st December by the 21st day after the commencement day, and by 1st February in 2027, 2028, 2029, 2030 and 20311. Where a supplier notified the Authority of its customer number on 31st December 2025 before commencement and does not notify a change, the Authority must treat the original notification as its notification1.
The regulations also set limits on non-core spending. A supplier's non-core spending obligation must be no less than the obligation percentage of £5 million but must not in total exceed the obligation percentage of £10 million, and must not exceed the obligation percentage of £3 million in respect of customers supplied with neither electricity nor gas through a pre-payment meter1. Core group customers must receive the prescribed rebate on or before 31st March in the scheme year1.
"These Regulations come into force on 1st April 2026."
Why it matters for households
The rebate is a fixed £150 for the scheme period, so the value of the discount does not rise with the spending obligations set for later scheme years1. Eligibility for the core group is defined in the regulations rather than by the level of a household's bill, and the customer-number threshold of 1,000 GB domestic customers determines which suppliers carry the duty1. The regulations extend to England and Wales only, apart from the citation, commencement and extent regulation and regulation 33, which extend to England and Wales and Scotland1. The scheme sits alongside other obligations on suppliers, including the ECO4 energy company obligation, and the smart meter rules and supplier obligations that govern metering in domestic premises; the regulations define smart meter advice as advice on the benefits of using a smart meter in domestic premises1.
What happens next
Suppliers must notify the Authority of their GB domestic customer numbers by the 21st day after the commencement day, and again by 1st February in each of 2027 to 20311. Rebates to core group customers must be provided on or before 31st March in the scheme year1. In scheme year 20, the relevant date falls after 1st March 20311. The scheme period ends on 31st March 2031, with certain supplier duties and Secretary of State and Authority powers continuing after that date1.
Sources1 cited
- The Warm Home Discount (England and Wales) Regulations 2026, legislation.gov.uk