Warm Home Discount Expanded to Help Millions More Low-Income Households

This reform removes the previous “high cost to heat” property threshold, meaning more low-income households will automatically qualify for the £150 energy rebate. The changes are part of the updated Warm Home Discount (Amendment) Regulations 2025, published in September, and are expected to bring around 2.7 million extra households into the scheme at an overall cost of around £1 billion.

Under the new rules, eligible households in “Core Group 2” must be named on their electricity bill and receive one of several benefits, including Universal Credit, Housing Benefit, Income Support, or income-based Jobseeker’s Allowance. Most will receive the rebate automatically through data matching between energy suppliers and government systems, while others will be invited to confirm eligibility via a helpline. The updated scheme continues to provide automatic rebates to pensioners on Pension Credit Guarantee Credit, classed as “Core Group 1.”

Eligibility will apply only to domestic electricity customers living in homes supplied directly by an energy provider. Residents of park homes, care homes, or properties supplied via intermediaries will not qualify under this scheme but may be eligible through separate support programmes. The removal of the heating-cost threshold also means people living in annexes with their own electricity supply can now qualify if they meet the income criteria, while caravans generally remain excluded unless they are permanent residences with a direct supplier relationship.