Warm Home Discount vs Warm Homes Loan: what each one is and who gets it
They share most of a name and nothing else. The Warm Home Discount is a one-off £150 off your electricity bill, applied by your supplier and usually automatic. The Warm Homes Loan Scheme is a government-subsidised loan for solar, batteries and heat pumps, which you apply for through a lender. Neither replaces the other, and the dates, the people who qualify and the way you apply are all different.
Updated 28 October 2026 · written by the Clearline guidance team · 8 min read
On this page
- Quick answer: is the Warm Home Discount the same as the Warm Homes Loan?
- What is the Warm Home Discount, and how much is it?
- Who qualifies for the Warm Home Discount in 2026 to 2027?
- How do I apply for the Warm Home Discount?
- What is the Warm Homes Loan, and how do I apply for it?
- Which scheme do I get, and can I get both?
Quick answer: is the Warm Home Discount the same as the Warm Homes Loan?
No. The Warm Home Discount, often searched for as the Warm Homes Discount, is a one-off £150 discount off your electricity bill for people who get certain means-tested benefits. The Warm Homes Loan Scheme is a government-subsidised loan, from one of ten named lenders, towards solar panels, batteries, heat pumps and a few other upgrades. One reduces a bill and the other helps you pay for equipment over time. You do not apply for one through the other, and their dates, eligibility and application routes are all different.
Budget update: Boiler Upgrade Scheme and Warm Homes Loan
The Budget document says the government has launched the Warm Homes Loan Scheme and will hold the Boiler Upgrade Scheme at £400 million in 2027-28, as announced in the 28 October 2026 Budget. No Budget document mentions the Warm Home Discount, so DESNZ's 22 October 2026 confirmation of £150 this winter stands. Source: HM Treasury, Budget 2026 document (Red Book), paragraph 4.36.
| Question | Warm Home Discount | Warm Homes Loan Scheme |
|---|---|---|
What it is | A one-off £150 discount off your electricity bill | A loan for solar, batteries, heat pumps and a few other upgrades, with a government grant paid to the lender so the rate is lower |
Who it is for | Households where you or your partner got a qualifying means-tested benefit on 23 August 2026, with a name on the electricity bill of a supplier in the scheme | Owner-occupiers and private landlords of UK homes, borrowing personally. No income test, but lender credit and affordability checks |
Do you need to own the home? | No. It depends on your benefits and the electricity bill | Yes |
Where the money goes | To your supplier, which applies it to your bill. It is not paid to you | You borrow from a lender and repay it. The lender pays for the work, and when is its decision |
How you apply | Usually automatic: look for a letter from the scheme. In Scotland a broader group applies through the supplier | You apply to a lender. There is no government portal |
Key dates | Qualifying date 23 August 2026. Letters from late October 2026 to early January 2027. Applied to your bill by 31 March 2027 | Launched 26 to 27 October 2026. Each lender opens on its own timetable |
Where it applies | England and Wales on one set of rules, a separate route in Scotland, not available in Northern Ireland | Any domestic property in the UK, including Northern Ireland |
Sources: GOV.UK Warm Home Discount Scheme pages and the Warm Homes Loan Scheme pages, the DESNZ factsheet and the Scheme Rules, all accessed 28 October 2026.
Clearline is not involved in either application
We do not offer, arrange or broker credit, and we do not apply for the Warm Home Discount on anyone's behalf. This guide explains two government schemes and points you to GOV.UK for each.
What is the Warm Home Discount, and how much is it?
The Warm Home Discount Scheme is a one-off £150 discount off your electricity bill. Your supplier applies it and, as the Warm Home Discount Scheme page on GOV.UK puts it, the money is not paid to you. If your supplier provides both gas and electricity, you may be able to take it on your gas bill instead, which you would arrange with the supplier. You can qualify with a prepayment meter, and your supplier will tell you how you receive it, for example as a top-up voucher. It does not affect Cold Weather Payment or Winter Fuel Payment. Park home residents apply through a separate route, and the scheme is not available in Northern Ireland.
Your supplier has to be in the scheme. The list of participating suppliers on GOV.UK has 24, including British Gas (and Scottish Gas), EDF, E.ON Next, Octopus Energy, OVO, ScottishPower, Utilita and Utility Warehouse. If your supplier stops trading you may still be eligible, because Ofgem appoints a new supplier for you and you should check with it.
Who qualifies for the Warm Home Discount in 2026 to 2027?
In England and Wales you are in what GOV.UK calls the core group if all of these were true on 23 August 2026:
- Your energy supplier is part of the scheme.
- You, or your partner, get certain means-tested benefits.
- Your name, or your partner's, is on the electricity bill.
The qualifying benefits are Universal Credit, Housing Benefit, income-related Employment and Support Allowance and Pension Credit. The formal rules are in DESNZ's eligibility statement for England and Wales for the 2026 to 2027 scheme year, published on 7 August 2026.
Scotland has a broader group as well, for people who do not get the discount automatically. To apply, contact your electricity supplier as early as possible, even if you received the discount last year, because the number of discounts is limited. Suppliers may set extra criteria and will tell you which benefits qualify, and you need to stay with your supplier until it is paid.
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How do I apply for the Warm Home Discount?
Check your supplier is in the scheme
Look your supplier up on the GOV.UK list of participating suppliers. If it is not on the list, you cannot get the discount through it.
Wait for the letter
If you are eligible, or might be but need to give more information, you will get a letter between late October 2026 and early January 2027. A letter confirming you are eligible means you do not need to do anything.
Call if the letter asks you to confirm details
If the letter asks for more information, call the helpline by 26 February 2027.
Contact the scheme if no letter arrives
If you think you qualify and have no letter by early January 2027, contact the Warm Home Discount Scheme before 26 February 2027. The helpline is 0800 030 9322, Monday to Friday, 8am to 6pm, and Relay UK users can dial 18001 then 0800 229 4325.
Your supplier applies the discount
If you are eligible, your supplier applies the discount to your bill by 31 March 2027. In Scotland, if you applied directly to your supplier you will not get a letter, so contact the supplier instead.
GOV.UK says the discount goes to your supplier and is not paid to you, so a text or email asking for your bank details to release the £150 is not how the scheme works.
What is the Warm Homes Loan, and how do I apply for it?
The Warm Homes Loan Scheme launched on 26 to 27 October 2026. It lends towards solar panels (up to £15,000), batteries (up to £15,000), heat pumps (£20,000 air-to-water and £35,000 ground source, before any Boiler Upgrade Scheme grant) and a few other measures. The government pays the lender a grant that must be passed on as a lower interest rate, up to 5 percentage points below the lender's own rate. There is no income test, but you must own the property and pass the lender's credit and affordability checks, and you apply to a lender, never to the government. Our step-by-step application guide covers the order of things, the lenders guide names the ten lenders, and the solar and battery guide covers the caps. The live status is on our Warm Homes Loan page.
Which scheme do I get, and can I get both?
| Your situation | Where to look |
|---|---|
You or your partner got Universal Credit, Housing Benefit, income-related ESA or Pension Credit on 23 August 2026, and your supplier is in the scheme | Warm Home Discount: £150 off your electricity bill, usually automatic |
You own your home and want solar, a battery or a heat pump paid for over time | Warm Homes Loan Scheme: apply to a lender |
Lower income, in England, EPC D to G, and want free insulation, a heat pump or solar | Warm Homes: Local Grant, through your council. See our Local Grant guide |
Replacing a fossil fuel heating system with a heat pump in England or Wales | Boiler Upgrade Scheme: £7,500 off the quote, applied for on your behalf by the MCS-certified business doing the work. See our Boiler Upgrade Scheme guide |
You rent your home | The loan needs you to own the property. The Warm Home Discount depends on your benefits and the name on the electricity bill, not on owning the home |
Sources: GOV.UK Warm Home Discount, Warm Homes Loan Scheme, Warm Homes: Local Grant and Boiler Upgrade Scheme pages, accessed 28 October 2026.
The Warm Home Discount is a bill discount and the Warm Homes Loan funds equipment, so they do different jobs, and the GOV.UK pages we read for each do not make one depend on the other. The restriction GOV.UK does set on the loan is that you cannot use a Warm Homes loan and other government funding to pay for the same improvement, with the Boiler Upgrade Scheme and Home Energy Scotland as the exceptions. The Warm Homes Plan is the government's wider upgrade programme, and our Warm Homes Plan guide covers its three schemes. The Warm Home Discount is not one of those three.
Weighing up solar or a battery rather than a bill discount? Book a free design and quote, on video, or by phone if you prefer. It is a quote for the work from our MCS-certified, fully insured installation teams, and we do not offer or arrange finance.
Get my free quote →Warm Home Discount details were read from GOV.UK on 28 October 2026 and Warm Homes Loan details from GOV.UK, the DESNZ factsheet and the Scheme Rules the same day. Scheme dates, suppliers and rules change; confirm the current position on GOV.UK. This guide is factual information about government schemes, not financial advice.
Warm Home Discount and Warm Homes Loan questions, answered
Is the Warm Home Discount the same as the Warm Homes Loan?
No. The Warm Home Discount is a one-off £150 discount off an electricity bill for people on certain means-tested benefits, applied by your supplier. The Warm Homes Loan Scheme is a government-subsidised loan from a participating lender towards solar, batteries, heat pumps and a few other upgrades. They have different eligibility, dates and application routes.
How much is the Warm Home Discount?
GOV.UK describes it as a one-off £150 discount off your electricity bill. Your supplier applies it and the money is not paid to you. If your supplier provides both gas and electricity, you may be able to take it on your gas bill instead.
Do I have to apply for the Warm Home Discount?
Usually not. GOV.UK says you will usually get it automatically if you are eligible, and a letter between late October 2026 and early January 2027 will tell you what to do. In Scotland you may need to apply directly to your supplier. If you think you qualify and have no letter by early January 2027, contact the scheme before 26 February 2027 on 0800 030 9322.
Who is eligible for the Warm Home Discount in 2026 to 2027?
In England and Wales, you, or your partner, must have got Universal Credit, Housing Benefit, income-related Employment and Support Allowance or Pension Credit on 23 August 2026, your supplier must be in the scheme, and your name or your partner's must be on the electricity bill. Scotland has a broader group that applies through the supplier. The scheme is not available in Northern Ireland.
Is it the Warm Homes Discount or the Warm Home Discount?
GOV.UK calls it the Warm Home Discount Scheme, singular. People often search for the Warm Homes Discount, and it is easy to confuse with the Warm Homes Plan, the Warm Homes Local Grant and the Warm Homes Loan Scheme, which are different things.
Can I get the Warm Home Discount and a Warm Homes Loan?
They do different jobs: one is a bill discount and the other is a loan for equipment. The GOV.UK pages we read for each do not make one depend on the other. The loan does have a rule against using it and other government funding for the same improvement, with the Boiler Upgrade Scheme and Home Energy Scotland as exceptions.
Does the Warm Home Discount affect my Winter Fuel Payment?
No. GOV.UK says the Warm Home Discount does not affect Cold Weather Payment or Winter Fuel Payment.
How do I apply for each one?
For the Warm Home Discount, wait for the letter and contact the scheme if none arrives by early January 2027; in Scotland, contact your supplier. For the Warm Homes Loan, choose one of the ten lenders named on GOV.UK and apply to it, after getting a quote from an MCS-certified business. Our application guide has the steps.
See the numbers next: Duracell Dura16, installed, or the battery storage guide.
Figures and specifications in this guide are sourced below and were checked on the date shown. Rates and product specifications change; we confirm the current picture on your free design call.
Sources
- GOV.UK, The Warm Home Discount Scheme: overview, £150 one-off discount, how it is applied and who it excludes, accessed 28 October 2026 gov.uk/the-warm-home-discount-scheme
- GOV.UK, The Warm Home Discount Scheme: England and Wales eligibility, qualifying date of 23 August 2026, qualifying benefits, letters and helpline (print view), accessed 28 October 2026 gov.uk/the-warm-home-discount-scheme/print
- GOV.UK, The Warm Home Discount Scheme: if you live in Scotland (broader group), accessed 28 October 2026 gov.uk/the-warm-home-discount-scheme/if-you-live-in-scotland
- GOV.UK, The Warm Home Discount Scheme: if you do not get a letter, helpline and the 26 February 2027 deadline, accessed 28 October 2026 gov.uk/the-warm-home-discount-scheme/get-help
- GOV.UK, The Warm Home Discount Scheme: energy suppliers in the scheme, accessed 28 October 2026 gov.uk/the-warm-home-discount-scheme/energy-suppliers
- DESNZ, Warm Home Discount: eligibility statement, England and Wales, 2026 to 2027 scheme year, statutory guidance published 7 August 2026 (we read its summary page; the rules above are from the GOV.UK scheme pages), accessed 28 October 2026 gov.uk
- GOV.UK, Warm Homes Loan Scheme: overview, eligibility and apply pages, accessed 28 October 2026 gov.uk/warm-homes-loan-scheme
- DESNZ, Warm Homes Loan Scheme: Factsheet, 27 October 2026, accessed 28 October 2026 gov.uk
- DESNZ, Warm Homes Loan Scheme Rules, version 3, September 2026: caps and grant mechanism, accessed 28 October 2026 assets.publishing.service.gov.uk
- GOV.UK, Apply for the Warm Homes: Local Grant, accessed 28 October 2026 gov.uk/apply-warm-homes-local-grant
- GOV.UK, Apply for the Boiler Upgrade Scheme, £7,500 grant for an air source or ground source heat pump, accessed 28 October 2026 gov.uk/apply-boiler-upgrade-scheme
- HM Treasury, Budget 2026 document (Red Book), accessed 28 October 2026 https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html
Read next
The Warm Homes Plan, explained
The £15bn umbrella behind three schemes. The loan scheme launched on 26 to 27 October 2026.
Read the guide →How to apply for the Warm Homes Loan: step by step, and when it starts
Apply to a lender, not government. The steps in order, what the quote must show, and what to keep.
Read the guide →Warm Homes: Local Grant, who qualifies and how to apply
Fully funded insulation, a heat pump and solar, for households that qualify. Council cost caps apply.
Read the guide →