Your energy bill changed on 1 October 2026.
Ofgem confirmed the new energy price cap is £1,723 a year for a typical dual-fuel household paying by Direct Debit, covering 1 October to 31 December 2026. That is a 4% rise from the previous £1,663 cap.
The headline rise happened even though the government removed 5% VAT from domestic electricity from October. The removal saves a typical household around £45 a year, but higher wholesale gas prices have pushed the overall cap up by around £60.
At the same time, the government’s main winter support — the Warm Home Discount — is back for winter 2026/27.
This guide explains who gets the £150 automatically, who needs to apply, which suppliers are in the scheme, and what to check if you don’t receive it.
What Is the Warm Home Discount in 2026/27?
The Warm Home Discount is a one-off £150 discount on your electricity bill over winter. It is not paid to you as cash and it is not a loan you need to repay.
Your electricity supplier applies it directly to your electricity account or meter.
It is designed to help households on low incomes or those who are particularly vulnerable to cold weather costs.
For winter 2026/27, the government has expanded the scheme. Age UK has confirmed that every household receiving a means-tested benefit will now be eligible for the payment, rather than only selected recipients as in previous years.
Who Qualifies Automatically on 23 August 2026?
Eligibility is assessed on a single qualifying date: 23 August 2026.
According to Citizens Advice and GOV.UK, in England and Wales you may qualify if on that date all three of these applied:
1. Your electricity supplier is part of the Warm Home Discount scheme
Most large and medium suppliers are. If your supplier is not part of it, you cannot get the discount even if you receive benefits.
2. Your name (or your partner’s name) is on the electricity bill
The person receiving the benefit generally needs to be named on the account. If your partner is the claimant and you share the same address, you may still qualify if their name is on the bill.
3. You or your partner receives a qualifying means-tested benefit
Qualifying benefits include:
- Guarantee Credit element of Pension Credit (this is known as Core Group 1)
- Universal Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Housing Benefit
- Child Tax Credit and Working Tax Credit (in some cases, subject to income thresholds)
For Core Group 1 — those receiving Guarantee Credit — you should qualify automatically as long as your supplier is in the scheme.
For Core Group 2 — those on other means-tested benefits — the expansion for 2026/27 means many more households will now receive it automatically after a data match between the Department for Work and Pensions (DWP) and energy suppliers.
Read:Broadband Social Tariffs UK 2026: Who Qualifies and How to Apply
What About Scotland?
Scotland has two groups:
Core Group 1: Same as England and Wales — Guarantee Credit element of Pension Credit, automatic.
Broader Group: Households on other low-income benefits. From winter 2026/27, many in Scotland will be moved into an expanded automatic group, but some households may still need to apply directly to their energy supplier when the scheme reopens in autumn.
If you are in Scotland, check your supplier’s Warm Home Discount page in October.
Do You Need to Apply?
For most people in England and Wales for winter 2026/27, you do not need to apply.
DWP carries out an automatic check with energy suppliers. If you are eligible, you should receive a letter between October and December confirming the discount.
You only need to contact your supplier if:
- You receive a letter saying you need to provide more information
- You believe you are eligible but have not received a letter by early January 2027
- You are in Scotland’s Broader Group and your supplier asks you to apply
Do not give bank details to anyone claiming to be from the Warm Home Discount scheme. The discount is never paid by bank transfer.
Which Energy Suppliers Are Part of the Scheme?
All suppliers with more than 1,000 domestic customers are required to be part of the scheme, plus some smaller suppliers who volunteer.
For 2026/27, suppliers in the scheme include:
- British Gas
- EDF Energy
- E.ON Next
- Octopus Energy
- OVO Energy
- ScottishPower
- SSE
- Utilita
- Utility Warehouse
- And most other licensed suppliers
You can check if your supplier is part of the scheme on GOV.UK: Check if your electricity supplier is part of the Warm Home Discount.
If you switched supplier after 23 August 2026, the discount should still follow you if you were eligible on that date, but confirm with your new supplier.
When Will the £150 Be Paid?
The discount is applied between October 2026 and March 2027, not as a single payment on 1 October.
For direct debit customers, it usually appears as a credit on your electricity bill.
For prepay meter customers, you will usually receive a voucher or a direct credit to your meter. Your supplier will tell you how to redeem it.
It is important to keep your electricity account open until you receive it.
Why Has the Price Cap Risen to £1,723 If VAT Was Removed?
This is the most confusing part for many households.
From October 2026, the government removed the 5% VAT on domestic electricity, saving a typical household around £45 a year. Earlier removal of some green levies saved around £150.
However, the price cap is driven mainly by wholesale gas prices. Gas prices have risen sharply in 2026 due to global factors, including the conflict that began in February.
According to Ofgem:
- The typical annual bill rises 4% to £1,723
- Gas unit rates are rising by around 8%, faster than electricity
- Your actual bill depends on how much you use, not just the headline cap
That is why many households will see higher bills from October, even with VAT removed.
What If You Are Struggling but Don’t Get the Warm Home Discount?
The Warm Home Discount is only one form of support.
If you do not qualify, check:
1. Are you on the cheapest tariff?
If you are out of contract on a standard variable tariff, you are on the price cap rate. Cornwall Insight forecasts prices could rise another 16% in January 2027. It may be worth checking fixed deals now.
2. Could you get a social tariff for broadband or water?
As we explained in our Broadband Social Tariffs guide, more than 30 broadband providers offer discounted packages from £12.50 to £24 a month for households on Universal Credit and other benefits.
3. Winter Fuel Payment and Cold Weather Payments
If you receive Pension Credit or other qualifying benefits, you may also be eligible for Winter Fuel Payment or Cold Weather Payments when temperatures drop.
4. Check your energy usage by household size
According to DESNZ data for October-December 2026:
- 1 adult: around £1,496 a year at the cap
- 2 adults: around £1,888 a year
- 4 adults: around £2,289 a year
Knowing your group helps you spot if you are using more than typical.
Final Checklist for Today
Before you wait for the discount:
- Check you were receiving a qualifying benefit on 23 August 2026
- Check your electricity supplier is part of the scheme
- Check the bill is in your name or your partner’s name
- Look out for a letter from DWP or your supplier between October and December
- Do not close your electricity account before the discount is applied
- Keep your receipt or voucher if you are on prepay
- Review your direct debit after the discount is applied to make sure it is still accurate
- Compare your energy tariff before January, when prices are forecast to rise again
For most eligible households, the £150 will arrive automatically. The key is to check rather than assume, and to keep an eye on your electricity account over the next three months.
Read:Free Boiler Grant UK 2026: ECO4 Eligibility and How to Apply
Optional UK Home Saver Tool
If you are tracking the Warm Home Discount, the new £1,723 price cap, broadband social tariffs and other recurring costs together, the UK Home Saver Household Bills Command Centre keeps bills, subscriptions, payment dates, spending and savings together in one workbook.
View the Household Bills Command Centre on Gumroad
Also available from the UKHomeSaver Etsy shop.
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