The UK Government has confirmed that the Warm Home Discount will continue for a new five-year scheme period running from 2026/27 to 2030/31, and that eligibility for the data-matched Core Group in Scotland will be expanded from 2026/271. The decision follows a consultation that ran from 25 September 2025 to 20 November 2025 and received 93 responses, of which 84 (90 per cent) came from organisations and nine (10 per cent) from individuals1.
Under the change, the Core Group in Scotland will be retained but expanded so that more rebates are provided through automatic data matching. Eligibility will be aligned to the same qualifying benefits as for the Winter Heating Payment in Scotland as of December 20251. Additional rebates will be provided by energy suppliers through the Broader Group on an application basis, targeted at households in receipt of the Pension Age Disability Payment, the Adult Disability Payment and other households in receipt of means-tested benefits1. Energy suppliers will continue to have discretion over the requirement to be named on the energy bill, and the qualification date will be retained1.
The Warm Home Discount provides £150 energy bill rebates, funded through a levy on all domestic gas and electricity customers1. 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, around 6 million households across Great Britain are estimated to receive the rebate, an increase of around 2.7 million on the previous year, after the removal of the high-cost-to-heat element of eligibility in England and Wales1.
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 from 2025/261. 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, expand the number of households qualifying via the data matched Core Group, reflecting the decisions made on eligibility by the Scottish Government."
The current scheme period ends on 31 March 2026, and new regulations are required to continue it1. The Government said it will lay regulations for the next scheme period to ensure they are in force ahead of winter 2026/271.
Why it matters for households
For a household in Scotland, the practical effect is that more homes will be drawn into the automatic Core Group without needing to apply, because the qualifying benefits list now matches the one used for the Winter Heating Payment in Scotland as of December 20251. Automatic payment through data matching removes the need for a claim, which matters for households that may not know the scheme exists or may not complete an application. Households not captured by data matching can still be considered through the Broader Group, which energy suppliers run on an application basis under their non-core obligation1.
The rebate is £150 off an electricity or gas bill, funded by a levy on all domestic gas and electricity customers, so the cost is spread across billpayers rather than general taxation1. For a home's energy independence, the rebate reduces the amount owed to a supplier but does not change how the home is heated or how much energy it uses. The consultation responses noted that support through the scheme alone cannot solve fuel poverty, with recurring calls to increase the rebate and expand eligibility1. How the Scottish alignment interacts with the separate Child Winter Heating Payment in Scotland and the Pension Age Winter Heating Payment in Scotland has not been reported.
What happens next
The Government will lay regulations for the next scheme period so they are in force ahead of winter 2026/27, which it says will secure continued support for around 6 million low-income and vulnerable households next winter1. The current scheme period ends on 31 March 20261. The Government also said it will continue to explore improvements during the next scheme period, which may include tiered or increased rebates, broader eligibility and better data-sharing1.