Warm Home Discount explained

The Warm Home Discount (WHD) scheme offers a one-off £150 discount on winter electricity bills for eligible low-income households in Great Britain. This guide provides clear, up-to-date information for the 2026-2027 scheme year, helping you understand eligibility, how payments work, and what to do if you believe you qualify but have not received it.

Understanding schemes like the WHD can help you manage your energy costs. Fuse Energy is committed to providing clear information and supporting its customers with their energy needs. Click here to see how easy it is to switch to a smarter energy supplier.

What is the Warm Home Discount scheme?

The WHD is a government-backed initiative designed to help vulnerable households manage their energy costs during the colder months. It provides a one-off £150 reduction on your electricity bill, or as credit to your prepayment meter, for the winter period between October and March. The scheme typically opens in October for winter payments, with the discount applied by 31 March of the following year. This financial support is a direct reduction to your energy costs, not a cash payment.

Warm Home Discount eligibility for 2026-2027

Eligibility for the WHD scheme for winter 2026-2027 is primarily based on your circumstances on a specific "qualifying day" in August 2026. For most, the discount is applied automatically, meaning you do not need to apply. To qualify, your energy supplier must be part of the WHD scheme, and you (or your partner) must be named on the electricity bill on the qualifying date.

Core group 1: Pension credit guarantee credit

You typically qualify for Core Group 1 if you receive the Guarantee Credit element of Pension Credit on the qualifying day. This group usually receives the discount automatically.

Core group 2: broader benefits and high energy costs

Core Group 2 covers a broader range of benefits. You may be eligible if you receive certain means-tested benefits on the qualifying day, such as Universal Credit, Income-related Employment and Support Allowance (ESA), Income-based Jobseeker's Allowance (JSA), Income Support, or Housing Benefit. The Department for Work and Pensions (DWP) identifies eligible households for automatic payments based on data matching.

The crucial qualifying day

The qualifying date for the 2026-2027 scheme is a specific day in August 2026. Your eligibility is assessed based on your circumstances on this specific day. If your benefits claim is backdated to this date or earlier, you may still become eligible for the rebate.

How the Warm Home Discount is paid

The WHD is generally not paid directly to you. Instead, it is applied as a credit to your electricity account.

Automatic payments for most

For most eligible households in England and Wales, the discount is applied automatically. You will typically receive a letter from the government between October and December 2026 confirming your eligibility and that you do not need to do anything further. Your electricity supplier will then apply the £150 discount to your bill by 31 March 2027 at the latest.

What Fuse Energy customers can expect

As a participating energy supplier, Fuse Energy will ensure that eligible customers receive their automatic £150 WHD. This discount will be applied directly as a credit to your electricity bill. If you use a prepayment meter, the £150 will be added as credit to your meter, helping to reduce your out-of-pocket costs.

The park home Warm Home Discount

If you permanently live in a park home in England, Scotland, or Wales and pay for your electricity directly to your site owner (rather than an energy supplier), you may qualify for the separate Park Home WHD scheme. This scheme requires an application, as it is not automatically paid. Applications for the 2026-2027 scheme are typically open from September, and funding is limited, so it is advisable to apply early. Eligibility often depends on receiving certain benefits or having a household income below £20,328 a year.

Warm Home Discount vs Winter Fuel Payment

It is common to confuse the WHD with the Winter Fuel Payment, but they are distinct schemes with different eligibility criteria and purposes.

Key differences in eligibility and amount

The WHD is a £150 discount on your electricity bill for eligible low-income households. The Winter Fuel Payment, on the other hand, is an annual one-off payment of between £100 and £300 to help people of State Pension age with heating costs. For winter 2026-2027, you could be eligible for the Winter Fuel Payment if you were born before 28 June 1960 and normally live in England or Wales. Most eligible individuals receive this payment automatically in November or December.

The £35,000 income recovery rule for Winter Fuel Payment

A significant change for the Winter Fuel Payment from winter 2025/26 onwards is the introduction of an income recovery rule. While eligibility became universal again for all people over State Pension age in England and Wales, if your individual taxable income is over £35,000 a year for the relevant tax year, HM Revenue and Customs (HMRC) will recoup the full amount of your Winter Fuel Payment via the tax system. This recovery is applied through changes to your PAYE tax code or via Self Assessment. You can opt out of receiving the payment if you wish to avoid this recovery.

Regional variations for the Warm Home Discount

While the core principles of the WHD apply across Great Britain, there are regional differences, particularly for Scotland and Northern Ireland.

Scotland's approach

In Scotland, the WHD scheme has expanded its Core Group, meaning more households will receive their £150 discount automatically. For those not in the Core Group, some suppliers may offer a Broader Group application process.

Scotland also has its own equivalent to the Winter Fuel Payment, called the Pension Age Winter Heating Payment. This payment, ranging from roughly £100 to £300, is paid directly by Social Security Scotland to people of State Pension age. Similar to the Winter Fuel Payment in England and Wales, if your individual income exceeds £35,000, the payment will be recovered by HMRC.

Northern Ireland's schemes

The WHD scheme does not apply in Northern Ireland. Instead, Northern Ireland has its own energy support programmes, which are devolved to the Northern Ireland Executive. These include the Affordable Warmth Scheme for lower-income households and the Northern Ireland Sustainable Energy Programme (NISEP), which funds energy efficiency schemes for domestic and non-domestic customers. There is also the Home Heating Oil Support Scheme for households using oil as their main heating source, which requires an application.

What to do if you do not receive the discount

If you believe you are eligible for the WHD but have not received confirmation or the payment, there are steps you can take.

Checking your eligibility

First, ensure you meet the eligibility criteria for the 2026-2027 scheme, particularly that you (or your partner) were receiving a qualifying benefit and were named on your electricity bill on the qualifying day in August 2026. If you have not received a letter from the government by mid-December, and you think you are eligible, you should contact the WHD helpline during its operational period.

Contacting your energy supplier

If you received a letter confirming your eligibility but have not seen the discount applied to your bill by 31 March 2027, contact your electricity supplier. The supplier you were with on the qualifying date (a specific day in August 2026) is responsible for providing the rebate, even if you have since switched.

Fuse Energy support

Fuse Energy is here to help. If you are a Fuse customer and believe you are eligible for the WHD but have not received it, or if you have any questions about the scheme, our 24/7 human customer support team is available to assist you. We can help you understand your situation and guide you through the next steps.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you are paying without unnecessary complexity. Our 24/7 human support team is always on hand with fast response times whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.