As the UK prepares for a rise in the energy price cap from 1 October, the Department for Energy Security and Net Zero (DESNZ) has detailed support measures aimed at easing the burden on household energy bills. This update comes amid growing concern over heating costs for vulnerable groups, including those with medical needs requiring warmer indoor temperatures.
Polly Billington, Parliamentary Under-Secretary of State at DESNZ, emphasised the Government’s awareness of the ongoing cost-of-living challenges faced by many households. She highlighted recent measures such as the removal of VAT from electricity bills to provide immediate financial relief, alongside a £150 reduction already applied to energy bills since April. Furthermore, the Warm Home Discount scheme, which assisted 5.7 million households last winter, will continue to support those in need.
The Government is investing £15 billion through the Warm Homes Plan, the largest home energy upgrade programme in British history. This initiative aims to improve energy efficiency, reduce costs, and lift one million families out of fuel poverty by 2030. An important aspect under consideration is enabling health sector referrals to help prescribe warmer homes for individuals with specific medical needs.
Addressing data challenges, DESNZ is collaborating with other Government departments on the National Data Library’s household income ‘kickstarter’ project. The goal is to better integrate public sector data to target support effectively and ensure that assistance reaches those struggling with energy payments.
Regarding specific support, the Warm Home Discount scheme from October will provide a one-off £150 credit towards electricity bills. Eligible customers with standard credit or smart prepayment meters should receive this credit automatically between October 2026 and March 2027, provided their name or that of a partner or legal representative was on the electricity bill by 23 August 2026. While the credit is normally applied to electricity bills, some suppliers may allow it to be credited against gas bills if both services are provided by the same company.
Energy regulator Ofgem has announced a 4% increase in the energy price cap, raising it from £1,663 to £1,723 annually for a typical household paying by direct debit for gas and electricity. This equates to roughly £5 more per month from October. The price cap protects about 22 million households on default tariffs, while approximately 35% of households on fixed tariffs, around 11 million, will not be affected by this rise.
To qualify for the Warm Home Discount, individuals must have an energy supplier participating in the scheme as of 23 August 2026, and either they or their partner must be receiving certain means-tested benefits, such as Housing Benefit, Universal Credit, Pension Credit, or income-related Employment and Support Allowance (ESA). The discount is applied directly to the electricity bill and is not paid out as cash.
These measures form part of a broader Government effort to address the rising energy costs as winter approaches, balancing immediate relief with long-term strategies to improve energy efficiency and reduce fuel poverty across the UK.