What Is It?
The Warm Home Discount is a £150 one-off payment taken off your electricity bill each winter. It's meant to help low-income households with heating costs.
From winter 2025–26, the government is expanding who qualifies — roughly 6 million households will now get it, up from 3 million before.
Why Is It Changing?
The old rules were complicated and unfair. You had to be on certain benefits AND live in a home classed as "expensive to heat." Many people who were struggling missed out simply because their home didn't tick that box.
The new rules are simpler: if you're on a qualifying benefit, you get the discount automatically. No more confusing eligibility checks.
The Catch: Everyone Else Pays More
Here's what they don't tell you upfront: the scheme is paid for by all energy customers. Energy companies add the cost to everyone's bills.
With double the people now receiving the discount:
- The scheme costs more to run
- Your bill goes up by around £15–£22 per year from October 2025
- Another £10–£20 could be added in April 2026 to cover supplier costs
Bottom line: If you don't qualify for the discount, you're helping pay for those who do — around £20–£40 extra per year on your bill.
Does This Affect Fixed Deals Too?
Yes. Most suppliers are building these extra costs into new fixed tariffs. So even if you switch to a fixed deal, you'll likely see the impact in the rates.
That said, there's still competition in the market. Some suppliers are absorbing part of the cost to stay competitive. So while costs are going up overall, there are still good deals to be found.
What Should You Do?
If you're on benefits: Check if you qualify — you might get £150 off automatically this winter. You don't need to apply if you're on Pension Credit (core group). For other benefits, check the government website.
If you're not eligible: Locking into a fixed deal now could help you avoid further increases expected in April 2026. Use our tariff tracker to compare the best deals available.