Some UK households can get up to £250 in support with their energy bills this winter, following measures announced in the Chancellor's first Budget.
In the Budget delivered on Wednesday, October 28, John Healey set out a £2.6 billion support package that will see around 20 million households in council tax bands A to D receive £100 from the Government this winter to help with energy costs.
The Chancellor said the cash sum would be paid directly into residents' bank accounts. The policy applies to England at present, with funds allocated to the rest of the UK from the £2.6 billion for devolved nations to do the same.
Warm Home Discount adds extra £150
People within those postcodes may also be eligible for a wider scheme that provides £150 of additional support under the Warm Home Discount, if they meet certain eligibility criteria.
Unlike the £100 cash payment, the Warm Home Discount provides a one-off £150 discount to your electricity account if you meet certain eligibility criteria, which differs slightly between England and Wales, and Scotland.
You may be eligible if all of the following applied on August 23, 2026: your energy supplier is part of the scheme, you (or your partner) get certain means-tested benefits, and your name (or your partner's) is on the electricity bill.
Eligibility and wider measures
Qualifying benefits differ between England and Wales and Scotland. Northern Ireland has a separate support mechanism called the Affordable Warmth Scheme.
DESNZ says all billpayers on means-tested benefits now qualify for the Warm Home Discount, removing restrictions that previously excluded many who needed help.
Last week the Department for Energy Security and Net Zero said households across England and Wales should look out for confirmation they will get the support, with some six million households across Britain set to benefit this winter.
Mr Healey also announced other measures intended to lessen the impact of high bills. Among them is that a "cost control framework" to drive down bills will be brought in.
Ahead of the Budget he confirmed that standing charges on gas bills will be scrapped from next year, with fixed costs to be paid on the unit rate instead. The Treasury said this could save 60% of households an average of £45 on their annual bills, with reforms to follow for electricity bills.
Meanwhile, a VAT cut on electricity will be extended to July, which Mr Healey said would take £50 off the annual price cap. The Chancellor also said that the Gas Shipper Obligation, a green levy to fund hydrogen projects, will be axed from energy bills and put on to general taxation.
