Ofgem published version 3 of its Warm Home Discount guidance for England and Wales on 1 June 2026. The regulator said the update follows the Department for Energy Security and Net Zero's consultation and government response on extending the scheme from 2026 to 20311.
The Warm Home Discount is a fuel poverty reduction scheme that has reduced the energy costs of low-income and vulnerable households across Great Britain since 2011, according to Ofgem. It primarily provides support through £150 energy bill rebates, funded through a levy on all domestic gas and electricity customers1.
"We have published version 3 of the Warm Home Discount guidance for England & Wales, following the Department for Energy Security and Net Zero's consultation and government response on extending the scheme from 2026 to 2031."
Ofgem states that version 3 should be read by suppliers and households for guidance on scheme years 16 to 20, excluding reconciliation. Version 2 remains the reference for scheme year 15 and before, including the reconciliation process for scheme year 15. Reconciliation guidance for scheme years 16 to 20 is not included in version 3 and Ofgem says it will be published separately1.
The guidance covers the scheme overview; how the Warm Home Discount budget is set, allocated and capped; how suppliers take part and how obligations are calculated; core group supplier obligations, eligibility and rebate delivery rules; the rebate process and when payments are made; industry initiatives and spending rules; reporting; and fraud and auditing1. Ofgem describes version 3 as reflecting amendments to regulations, providing additional clarity on scheme administration in light of those changes, plus minor corrections1.
| Guidance version | Applies to |
|---|---|
| Version 3 | Scheme years 16 to 20, excluding reconciliation |
| Version 2 | Scheme year 15 and before, including scheme year 15 reconciliation |
Ofgem's page also links to the Warm Home Discount (England and Wales) Regulations 2026 and the Warm Home Discount (Scotland) Regulations 2026, alongside the government consultation on continuing the scheme1. The energy regulation and policy framework behind the scheme sits with the Department for Energy Security and Net Zero, while Ofgem administers the guidance for suppliers and households1.
Why it matters for households
The Warm Home Discount is one of the home energy grants and schemes that reduce a household's annual energy costs rather than its consumption, so it affects the bill a home pays without changing how much gas or electricity it uses. The £150 rebate is funded by a levy on all domestic gas and electricity customers, which means the cost is spread across the customer base rather than met by government spending1.
For eligible low-income and vulnerable households, the rebate is applied through the supplier. The guidance sets out the rules suppliers follow on eligibility, rebate delivery and payment timing, so the version in force determines how a claim is assessed in a given scheme year. Households in England and Wales looking at the current rules fall under version 3 for scheme years 16 to 20; anything relating to scheme year 15 or earlier, including reconciliation, remains under version 21.
The extension of the scheme to 2031 means the framework now runs across five further scheme years, which gives a longer horizon for the support than a single-year renewal would. The separate Scottish regulations are listed on the same page, and the guidance itself covers England and Wales only1.
What happens next
Reconciliation guidance for scheme years 16 to 20 has not been published and Ofgem says it will follow separately1. No date for that publication is given in the guidance page.