Warm Home Discount (planned)

The scheme now¶

England and Wales¶

The Warm Home Discount (England and Wales) Regulations 2026 (SI 2026/389) continue the scheme from 1 April 2026 to 31 March 2031. They replace the 2022 Regulations (SI 2022/772), which applied to both England and Wales.

Under the eligibility statements made under the 2022 Regulations, the means-tested group (Core Group 2) had to pass a “high cost to heat” test based on property data. For winter 2025-26 the eligibility statement removed that test, so every household on a qualifying means-tested benefit became eligible. The government estimated this would bring 2.7 million more households into the scheme (government response, June 2025), taking it to around 6.1 million households in Great Britain (impact assessment). For winter 2025-26 (qualifying date 24 August 2025) the qualifying benefits also included income-based Jobseeker’s Allowance and Income Support, with Pension Credit Guarantee Credit in a separate core group (eligibility statement, 2025 to 2026).

For winter 2026-27, GOV.UK (eligibility in England and Wales) says a household qualifies if, on the qualifying date of 23 August 2026, its electricity supplier is in the scheme, the person’s (or their partner’s) name is on the electricity bill, and the person or their partner gets one of:

Universal Credit;
Housing Benefit;
income-related Employment and Support Allowance;
Pension Credit.

Most eligible households get the rebate automatically through data matching; the rest are sent a letter and must call the helpline by 26 February 2027 to confirm their details.

Scotland¶

The scheme runs under separate Scottish regulations. The Warm Home Discount (Scotland) Regulations 2026 (SI 2026/488) came into force on 1 May 2026 and run the scheme to 31 March 2031, replacing the 2022 Regulations (SI 2022/1073). Both 2026 Regulations set the rebate at £150. For winter 2026-27 (eligibility in Scotland):

Core group, automatic. Under Schedule 1 to the Regulations: anyone on Pension Credit; Universal Credit claimants with the disabled child addition, or who are not in work and have a child under 5 or limited capability for work (with or without work-related activity); income-related ESA claimants with a child under 5, a pensioner, severe disability or enhanced disability premium, or limited capability for work or work-related activity; Income Support or income-based JSA claimants with a child under 5 or a pensioner, higher pensioner, disability, severe disability, enhanced disability or disabled child premium; and people receiving loans for mortgage interest through Pension Credit, or through one of those legacy benefits with a child under 5 or a qualifying premium. GOV.UK’s summary is narrower.
Broader group, by application to the energy supplier, which can set its own extra criteria.

The qualifying date is also 23 August 2026.

Northern Ireland¶

The scheme doesn’t operate in Northern Ireland: its primary legislation extends to Great Britain only.

Proposed scope¶

Phase 1: England and Wales¶

Now a rule on benefit receipt:

Parameter gov.ofgem.warm_home_discount.amount: £150, the “prescribed rebate” in both sets of 2026 Regulations (£150 since winter 2022-23; under the Warm Home Discount Regulations 2011 it was £140 from 2014-15 to 2021-22, after £120, £130 and £135 in the first three scheme years).
Parameter listing the qualifying benefits by scheme year, since the 2025-26 and 2026-27 lists differ, so a reform can widen or narrow the list.
Variable warm_home_discount (Household, YEAR): the amount if the household is in England or Wales and any benefit unit receives a qualifying benefit. Read receipt from the modelled benefits, for example universal_credit, housing_benefit, esa_income and pension_credit, so that take-up carries through (esa_income is reported receipt, screened by capital and work tests).
No separate take-up flag, since most rebates are paid through data matching without a claim (a minority must phone the helpline).

Phase 2: Scotland core group¶

The core group can be built from the same benefit variables plus Universal Credit’s disabled child and limited capability for work assessments, whether the claimant is in work, whether there is a child under 5, and legacy-benefit premiums. ESA’s pensioner premium and loans for mortgage interest have no variables yet.

Phase 3: Scotland broader group¶

Application-based, so it needs a take-up rate calibrated to Ofgem’s published recipient numbers for Scotland, on top of the eligible group.

Data and calibration¶

Ofgem’s Warm Home Discount reports and data and annual reports: recipients and spend by group and country.
DWP benefit caseloads, already used to calibrate the qualifying benefits.
The 2025-26 impact assessment and government response give the expected number of recipients after the expansion. Use them to check Phase 1’s aggregate.

Open questions¶

Timing. The scheme year runs from April to March, but rebates are paid in the winter: letters go out from late October and suppliers apply the discount by 31 March, with the qualifying date in August. A model year (6 April to 5 April) contains one scheme year’s rebate, so pay it in the model year that contains the winter.
Who counts as the household. The rebate attaches to an electricity account. In multi-benefit-unit households, decide whether one qualifying benefit unit is enough (simplest, and likely right for most households) and say so.
Electricity VAT interaction. The rebate reduces the bill. If the model ever nets it off energy spending, it would interact with the domestic electricity VAT work in #2189. Modelled as a benefit, it doesn’t.