The government has outlined heating-cost support ahead of the coming rise in Ofgem’s energy price cap
The government’s energy department is preparing to take action within days over energy bills. It comes amid growing scrutiny over heating costs for vulnerable households across the UK as colder temperatures begin to take hold.
The Department for Energy Security & Net Zero has faced questions in Parliament about estimated household heating costs for those with medical conditions requiring them to maintain higher indoor temperatures. Now it has been explained that many UK homes could get support with energy bills after an inquiry on the subject from James McMurdock, Independent MP for South Basildon and East Thurrock.
The update comes as households brace themselves for steeper energy bills when the Ofgem price cap rises on October 1. And it follows the end of Britain’s very warm summer as an autumn chill prompts many to turn their heating back on.
In a statement about upcoming measures, Polly Billington – Parliamentary Under-Secretary of State at the Department for Energy Security and Net Zero – outlined what she says Andy Burnham’s government is doing to ease the burden on bill payers as cost-of-living pressures continue to mount.
She said: “The government is very aware of the cost-of-living pressures faced by households. The government has removed VAT from electricity bills to give households immediate breathing space.
“This is in addition to having removed £150 of costs off energy bills since April, plus the extension of the Warm Home Discount which reached 5.7million households last winter. The government recognises some households face additional specific challenges, such as medical needs.
“The Government is also investing £15 billion through the Warm Homes Plan, the largest home-upgrade programme in British history, to improve homes, reduce energy costs and help lift one million families out of fuel poverty by 2030. As part of this, the Government is exploring how to enable referrals from the health sector to prescribe a warmer home for those who need it.
“One of the biggest practical barriers to providing more targeted help to households is the availability of the right data. DESNZ is working closely with other Government Departments on the National Data Library household income ‘kickstarter’ project to test how public sector data can be better joined up to improve access to government programmes. This will pave the way for better targeted help, ensuring those who are struggling to pay their bills get the support they need.
“Through implementing the Warm Homes Plan millions of households will see energy bill savings. As part of this Government is exploring how to enable referrals from the health sector to prescribe a warmer home.”
What is the Warm Homes Discount?
The Warm Home Discount Scheme takes effect from October. It provides a one-off £150 reduction on your electricity bill.
Martin Lewis’ MoneySavingExpert website says “if you’re on a standard credit or smart prepayment meter, you should get the £150 automatically added as credit on your electricity account sometime between October 2026 and March 2027, as long as you (or your partner or legal representative) were named on your electricity account or bill by the qualifying date (23 August 2026).”
Should you qualify, your electricity supplier will apply the discount directly to your bill, rather than paying the sum to you personally. In most cases, the discount will be applied automatically if you are eligible. People in Scotland may need to apply directly to their energy supplier.
It may also be possible to have the discount applied to your gas bill instead, provided your supplier offers both gas and electricity and you meet the eligibility criteria. Get in touch with your supplier to find out more.
Energy regulator Ofgem has announced a 4% increase of the energy price cap for the period covering 1 October to 31 December 2026. The energy price cap safeguards approximately 22 million households on default tariffs by capping the maximum rates and standing charges that energy suppliers are permitted to levy. It is revised every three months to reflect fluctuations in the underlying costs of supplying energy.
The current price cap for a typical household paying by direct debit for gas and electricity stands at £1,663. Based on the energy consumption of a typical domestic household, from October, the price cap will increase by £60 per year (or £5 per month) to £1,723 for the average household using both electricity and gas if this level were maintained for a year.
Approximately 35% of households are on fixed tariffs and will not be impacted by this rise – this equates to about 11 million households.
Warm Homes Discount eligibility
You may be eligible for the warm homes dicount if on August 23 this year 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
The qualifying means-tested benefits are: Housing Benefit, Universal Credit, Pension Credit and income-related Employment and Support Allowance (ESA). If you’re eligible, your electricity supplier will apply the discount to your bill.
The money is not paid to you. For more on the warm homes discount, including eligibility, go here.
For more on the warm homes plan on the government’s web page on the subject.
