Millions of energy customers across the UK are set to receive a £150 rebate this winter as part of a government initiative to ease the pressure of rising living costs. This benefit comes through the Warm Home Discount scheme, with 24 energy suppliers having committed to the programme so far.
Approximately six million households will qualify for the discount, including around 250,000 in Scotland who will receive the payment automatically for the first time. The Scottish government, led by Andy Burnham, has urged eligible households to verify their names are correctly listed on their energy bills to ensure automatic payment.
Eligible households are those where the billpayer receives means-tested benefits. In England and Wales, this includes recipients of Housing Benefit, Income-related Employment and Support Allowance, Pension Credit, and Universal Credit, mirroring last winter’s eligibility criteria.
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This announcement follows the Prime Minister’s swift action to remove VAT from domestic electricity bills starting 1 October, a move expected to reduce the annual Ofgem price cap by £45 and provide further relief amid the cost-of-living challenges.
The following energy suppliers are participating in the 2026–2027 winter scheme: [list of suppliers not provided in the draft].
Energy Secretary Miatta Fahnbulleh commented: “Families will be worried about their energy bills this winter, and our focus is on giving them breathing space as we continue working to bring down costs. Last winter, almost a million more families with children received the £150 Warm Home Discount after we expanded the scheme.
“If you know someone who might benefit, please help spread the word and encourage them to check that their name is on their energy bill.”
The government is urging eligible customers to confirm that they are named on their electricity bill before Sunday 23 August, as suppliers will use records as of that date to determine payment eligibility. This is particularly important for those who have recently moved or who use pre-payment meters requiring key or card top-ups, as the account must be registered under their name to receive the discount.
Earlier this year, the government reaffirmed that the Warm Home Discount scheme will continue through to 2030/31, ensuring ongoing support for eligible households. The previous year’s Budget included measures to reduce average energy bills by around £150, a saving now embedded in billing calculations moving forward.
The Warm Homes Plan aims not only to reduce energy consumption and costs for millions but also to help alleviate fuel poverty across the country.