The Department for Energy Security and Net Zero (DESNZ) is set to implement new measures to alleviate rising energy costs, particularly for vulnerable households, as the Ofgem energy price cap is due to increase on 1 October. This comes amid growing concerns over heating costs for those requiring higher indoor temperatures for medical reasons.
Following inquiries from Independent MP James McMurdock, the government has clarified support available to households facing mounting energy bills. The announcement coincides with the end of a notably warm summer and the onset of colder temperatures across the UK, prompting many to resume heating their homes.
Polly Billington, Parliamentary Under-Secretary of State at DESNZ, emphasised the government’s awareness of the financial pressures faced by households. She highlighted recent relief measures including the removal of VAT from electricity bills, a £150 reduction in energy costs since April, and the extension of the Warm Home Discount which benefited 5.7 million households last winter.
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She added that the government is investing £15 billion through the Warm Homes Plan - the largest home-upgrade scheme in British history - aimed at improving homes, reducing energy consumption, and lifting one million families out of fuel poverty by 2030. As part of these efforts, the government is exploring referral pathways from the health sector to help those with medical needs access warmer homes.
To enhance targeted support, DESNZ is collaborating with other departments on the National Data Library project, aiming to better integrate public sector data and improve access to government assistance for those struggling to pay energy bills.
The Warm Home Discount Scheme, commencing this October, provides a one-off £150 credit on electricity bills for eligible households. According to advice from MoneySavingExpert, recipients with standard credit or smart prepayment meters should see the credit applied automatically between October 2026 and March 2027, provided they or their partner were named on their electricity account by 23 August 2026.
While in most cases the discount is applied directly to electricity accounts, those living in Scotland may need to apply directly to their energy supplier. Eligible customers may also be able to have this discount applied to their gas bills if their supplier provides both gas and electricity.
Separately, Ofgem has announced a 4% increase in the energy price cap for the period from 1 October to 31 December 2026. The cap protects around 22 million households on default tariffs by limiting the maximum charges energy suppliers can impose. The price cap is reviewed quarterly to reflect energy supply cost changes. For an average household paying by direct debit, the cap will rise by £60 annually, increasing from £1,663 to £1,723 if maintained over the year.
Households on fixed energy tariffs, approximately 35% or 11 million households, will not be affected by this increase.
To qualify for the Warm Home Discount, energy account holders (or their partners) must have been on their supplier’s scheme as of 23 August 2026 and receive certain means-tested benefits such as Housing Benefit, Universal Credit, Pension Credit, or income-related Employment and Support Allowance. The discount is credited directly to the electricity bill rather than paid out personally.
For further information on eligibility and the Warm Home Discount scheme, individuals should consult official government resources.