The Department for Work and Pensions (DWP) has announced that the £150 Warm Home Discount will be reintroduced in 2026, with broader eligibility criteria than in previous years. The measure is aimed at easing the financial burden for households reliant on means-tested benefits, as energy prices remain well above pre-2020 levels.
The announcement follows ongoing pressure from anti-poverty groups and rising concern over winter energy bills. The credit will be automatically applied to eligible households’ electricity accounts, meaning no formal application process will be required.
More Households to Benefit Under Expanded Eligibility
Under the revised scheme, around 2.7 million additional households across England, Scotland and Wales will receive the one-off £150 discount in 2026, according to the DWP. This includes nearly one million families with children, marking a significant expansion compared to earlier versions of the programme.
The Warm Home Discount is funded and distributed by energy suppliers, but eligibility criteria are set by the government. Individuals in receipt of means-tested benefits—such as Universal Credit or Pension Credit—will automatically qualify, regardless of their property type or energy usage levels.
The department has also warned of ongoing scams, stating on social media platform X (formerly Twitter): “If you get a call asking you to apply for the discount, it’s a scam.” This clarification aims to protect vulnerable households from fraudulent activity, as the credit is applied without direct customer involvement.
The announcement has been met with cautious approval from anti-fuel poverty campaigners. Simon Francis, from the End Fuel Poverty Coalition, said: “With bills still hundreds of pounds higher than in 2020, millions will continue to face unaffordable energy and cold, damp homes this winter.”
Government Says Move Is Part of Broader Cost-Of-Living Response
The reintroduction of the discount forms part of Prime Minister Keir Starmer’s Plan for Change, which includes other household relief measures such as free school meals and childcare support. Starmer described the Warm Home Discount as a policy designed to bring “security and peace of mind” to working families across the country.
Speaking alongside the Prime Minister, Energy Secretary Ed Miliband said the scheme reflected the government’s priority to “put money in people’s pockets” and support families facing mounting energy costs.
Meanwhile, Energy UK’s chief executive, Dhara Vyas, welcomed the move but called for a more refined system going forward. She stated that further help should be provided to the most vulnerable households by “accelerating progress on a new improved targeted support scheme.”
While the return of the Warm Home Discount may not resolve all the pressures caused by high energy prices, it is a timely intervention in the broader effort to tackle the UK’s ongoing cost-of-living crisis.
