Households will benefit from an average £150 of costs off energy bills (Image: Getty)
Millions of households will continue to benefit from the Warm Home Discount until 2030/31, as the government confirms the extension of the scheme. Eligible households will receive a £150 rebate on their energy bills each winter until 2030/1.
This follows last year’s expansion of the Warm Home Discount, which added 2.7 million families to the scheme, bringing the total number of eligible households to around six million. This is in addition to the average £150 reduction in households‘ energy bills from April, through measures announced at the Budget.
Significant reforms to the administration of the Warm Home Discount will also benefit hundreds of thousands of Scottish bill payers. Approximately 345,000 families in Scotland are set to automatically receive the £150 rebate next winter – an increase of around 250,000.
For years, many Scottish households have had to contact their supplier to apply for the rebate. These changes will simplify the process for the majority of those eligible for the discount in Scotland, aligning the scheme more closely with that in England and Wales, where most recipients already receive the rebate automatically.
A small number of households need to provide additional information to ensure they receive the discount this winter (2025/6). If they have received a letter advising them to call the helpline, they must do so by 27 February – now less than one month away, reports the Mirror.
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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, as we take action to bring down bills for good.”
The announcement follows last week’s unveiling of the government’s £15 billion Warm Homes Plan, Britain’s largest home upgrade scheme in history, designed to help millions of families reduce their energy costs.
From April onwards, households will save an average of £150 on energy bills, with certain consumers benefiting considerably more – for instance, a household with high electric storage heating usage could save over £400 annually on costs.
Households will benefit from an average £150 of costs off energy bills (Image: Peter Byrne/PA Wire)
Ned Hammond, Deputy Director, Policy (Customers) at Energy UK commented: “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.”
News comes ahead of reduction to costs in April (Image: Getty)
Matt Copeland, Head of Policy and Public Affairs at National Energy Action, commented: “The five-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.”
He added: “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 who cannot be identified through government data matching will remain without the help they need.”
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What is the Warm Home Discount?
The Warm Home Discount Scheme is a one-off £150 discount off your electricity bill. If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.
You’ll usually get the discount automatically if you’re eligible. You only need to apply if you’re on a low income in Scotland – contact your energy supplier to apply. You may be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity and you’re eligible. Contact your supplier to find out.
There are different ways to qualify for the Warm Home Discount Scheme depending on where you live. If you live in England and Wales, you qualify if you either get the Guarantee Credit element of Pension Credit or are on a low income.
If you live in Scotland, you qualify if you either get the Guarantee Credit element of Pension Credit or are on a low income in Scotland and meet your energy supplier’s criteria for the scheme
The following suppliers are part of the scheme:
- 100Green (formerly Green Energy UK or GEUK)
- Affect Energy – see Octopus Energy
- Boost
- British Gas
- Bulb Energy – see Octopus Energy
- Co-op Energy – see Octopus Energy
- E – also known as E (Gas and Electricity)
- Ecotricity
- E.ON Next
- EDF
- Fuse Energy
- Good Energy
- Home Energy
- London Power
- Octopus Energy
- Outfox Energy
- OVO
- Sainsbury’s Energy
- Scottish Gas – see British Gas
- ScottishPower
- Shell Energy Retail
- So Energy
- Square 1 Energy Ltd
- Tomato Energy
- TruEnergy
- Tulo Energy
- Utilita
- Utility Warehouse