Energy Costs Could Fall for Millions after New Winter Payment Announcement

Millions of households across Great Britain are set to receive help with energy bills after the government confirmed the return of the Warm Home Discount scheme for winter 2026 to 2027.

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Energy Costs Could Fall for Millions after New Winter Payment Announcement
© Shutterstock

The support will provide a one-off £150 discount on eligible households’ electricity bills, with the scheme scheduled to continue until 2030/31. According to the government, around six million households will receive the discount, including around 250,000 households in Scotland that will receive it automatically for the first time.

The announcement means eligible households will continue to receive support through the scheme, which is designed to help people on certain means-tested benefits with winter energy costs. The discount is applied directly to energy bills rather than paid as cash.

Warm Home Discount Returns for Eligible Households

The Warm Home Discount Scheme will reopen in October 2026 after closing following the previous winter period. According to government guidance, households in England and Wales may qualify if, on 23 August 2026, their energy supplier is part of the scheme, they or their partner receive qualifying means-tested benefits, and their name or their partner’s name appears on the electricity bill.

The qualifying benefits include Universal Credit, Housing Benefit, income-related Employment and Support Allowance (ESA) and Pension Credit. If a household meets the criteria, the electricity supplier will apply the discount automatically in most cases.

The scheme also applies to some customers who use pre-payment or pay-as-you-go meters. Energy suppliers can explain how eligible customers will receive the discount, which may include a voucher for topping up a meter.

In Scotland, some households will receive the payment automatically, while others may need to apply directly through their energy supplier. According to the scheme guidance, automatic eligibility includes some people receiving Pension Credit, certain disability-related additions to Universal Credit, and some households with young children that meet specific benefit conditions.

Warm Home Discount support returns for eligible customers © Shutterstock

Energy Suppliers Included in the 2026 to 2027 Scheme

A range of electricity suppliers will participate in the winter 2026 to 2027 Warm Home Discount scheme. The list includes British Gas, EDF, E.ON Next, Octopus Energy, OVO, ScottishPower, Utilita and Utility Warehouse, among others. According to the government, customers whose supplier stops trading may still be able to receive the discount. In such cases, Ofgem will appoint a new supplier, and customers are advised to check their eligibility with that supplier.

The discount does not affect other winter support payments, including Cold Weather Payments and the Winter Fuel Payment. The government has also said the wider Warm Homes Plan will focus on reducing energy use, lowering bills and helping households facing fuel poverty. The Warm Home Discount remains a separate measure, providing direct bill support for eligible energy customers.

Households who believe they were eligible for the previous winter’s scheme but did not receive the discount by 31 March 2026 can contact their electricity supplier. If the supplier cannot resolve the issue, customers can write to the Warm Home Discount Scheme with their details and confirmation of eligibility.

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