Government extends energy bill support for millions of families

The Government has announced that around six million low-income households will continue to receive £150 off their winter energy bills with the Warm Home Discount scheme extended by five more years.

The Government’s expansion of the Warm Home Discount last year added 2.7 million families to the scheme, bringing the total number of eligible households to around 6 million. 

Hundreds of thousands of Scottish billpayers will also benefit from reforms to the way the Warm Home Discount is administered, with around 345,000 families in Scotland set to receive the £150 rebate automatically next winter – an increase of around 250,000. The onus has for years been on many Scottish households to get in touch with their supplier to apply for the rebate. These changes will simplify the process for the majority of those eligible for the discount in Scotland, bringing the scheme closer into line with that in England and Wales – where most recipients already get the rebate automatically.

A small number of households need to provide extra information to ensure they get the discount this winter (2025/2026). If they have received a letter advising them to call the helpline, they must do so by 27 February 2026 – now less than one month away.

Energy Secretary Ed Miliband said “Tackling the affordability crisis is the government’s number one priority. That is why we are today confirming to millions of eligible families across the country that they will receive the £150 Warm Home Discount every winter for the rest of the decade. That will give families much-needed peace of mind that they will continue to receive vital support in the cold winter months, as we take action to bring down bills for good.”

Ned Hammond, Deputy Director, Policy (Customers) at Energy UK said “It’s very good news to see confirmation that the Warm Home Discount will be in place until the end of the decade which, particularly with the recent expansion, will provide continuing vital support with energy bills to millions of customers. The changes in Scotland are also very welcome as it will mean many more customers receiving the discount automatically without having to apply. We now look forward to working with the government on further changes to the scheme, including better targeting and tiered support, to ensure that is both directed to those most in need and provides the right level of assistance to really make a difference for customers struggling to afford bills.”

Matt Copeland, Head of Policy and Public Affairs at National Energy Action said “The 5-year continuation of the Warm Home Discount is welcome news for low-income households and provides support that extends beyond this parliament. Alongside energy advice and wider support to help maximise people’s incomes, directly reducing energy bills can be a vital lifeline for vulnerable people who cannot keep their homes adequately warm.

“Six million households across Great Britain now receive the discount and the revised eligibility criteria give greater certainty about who will benefit each year. It is also essential that support is continuing for energy advice and for measures that reach people who are not within the benefits system. Without this, many households that cannot be identified through government data matching will remain without the help they need.”

Director of Policy and Influencing at Independent Age, Morgan Vine said “We welcome the extension of the Warm Home Discount to 2030/31. The older people on low incomes we speak to tell us it is a vital lifeline that goes some way towards keeping their heating on during the coldest months.

“However, at just £150, the current value of the Warm Home Discount no longer goes far enough, as energy prices remain stubbornly high. We are urging the UK Government to increase the payment to £400 so it better reflects the real cost of heating a home. This increase needs to be delivered via government funding to avoid the cost being put on energy bills.

“Our advisers continue to hear from older people who are going to bed in hats and coats, spending their days in public places to stay warm, and cutting back on food so they can afford their heating. This is not acceptable, and it cannot continue.

“The changes to this scheme in Scotland are also welcome. It is now imperative that the UK Government ensures that no one on a low income in Scotland misses out on this vital lifeline as a result of these changes. Nobody should be left in the cold.”