Bills
TL;DR
Cost of living support in 2026 includes the Warm Home Discount on energy bills, Household Support Fund grants from local councils, council tax reduction schemes, social tariff broadband, and water bill assistance from water companies. Many eligible households do not claim what they are entitled to. Use gov.uk's benefits calculator or Citizens Advice to check your full entitlement before contacting individual providers.
The cost of living remains elevated in 2026 relative to pre-2021 levels, with household energy, food, and housing costs all substantially higher than five years ago according to ONS consumer price data. A range of government, regulator-mandated, and voluntary schemes are available to help lower-income and vulnerable households manage these costs, but take-up remains below entitlement levels for most programmes.
This guide covers the main sources of cost of living support available to UK households in 2026, who qualifies, how to access each scheme, and how to use official tools to identify any entitlements you may be missing. It focuses on factual schemes with primary source references rather than providing general budgeting advice.
Key facts (2026)
- The Warm Home Discount provides a one-off £150 reduction on electricity bills for eligible households in England and Wales; eligibility is determined automatically for most qualifying households based on DWP and Ofgem data (Ofgem).
- The Household Support Fund provides grants through local councils to help with food, energy, and essential costs; allocations and eligibility vary by local authority (DWP).
- Around 5.5 billion pounds in means-tested benefits goes unclaimed each year in the UK (Policy in Practice, 2024 estimates based on DWP data).
- Water companies are required by Ofwat to offer WaterSure tariffs to eligible customers who use high volumes of water for medical reasons and cannot reduce consumption.
- All 17 water companies in England and Wales offer social tariffs or assistance funds for customers in financial hardship; eligibility and discount levels vary by company (Ofwat).
Warm Home Discount 2025/26
The Warm Home Discount scheme provides a £150 one-off reduction directly off your electricity bill, not as a cash payment. In England and Wales, the scheme operates through an automatic matching process: DWP identifies households receiving the Guarantee Credit element of Pension Credit or households on low incomes with high energy costs, using data from energy suppliers. Qualifying households are notified by letter and the discount is applied directly by their supplier between October and March. You do not need to apply if you are automatically eligible. If you believe you qualify but have not received a letter by December, contact your energy supplier. Scotland operates a separate scheme; check the Scottish Government's website for eligibility details.
Household Support Fund
The Household Support Fund is a block grant from DWP distributed to local councils in England to provide emergency financial assistance to households most in need. Each council decides how to allocate its share; some offer food vouchers, some provide direct cash grants, some pay energy bills or top up prepayment meters directly. Eligibility and the size of any grant vary considerably between councils. Contact your local council's website or welfare support team directly to find out what is available in your area. Citizens Advice also has an online tool and local advisers who can identify local Household Support Fund grants you may be entitled to.
Council tax reduction and discounts
Council Tax Reduction (CTR) schemes - formerly known as Council Tax Benefit - are administered by local councils and provide reductions on council tax bills for lower-income households. Each council designs its own CTR scheme for working-age claimants, so the maximum reduction varies; some councils offer 100% reduction for the lowest-income households while others cap the reduction at a lower level. Pensioners are protected by a national scheme that guarantees them up to 100% reduction if they qualify. Separately, the single person discount reduces council tax by 25% for households with only one adult resident. Full-time students, people with severe mental impairment, and live-in carers may also qualify for additional discounts or exemptions. Apply to your local council directly.
Water bill help
All water companies in England and Wales are required by Ofwat to offer assistance to customers who cannot afford their bills. The WaterSure scheme caps bills for customers who use high volumes of water for medical reasons (such as a disability requiring frequent washing or use of a dialysis machine) and cannot reduce their usage, at the average household bill for their area. Separately, most water companies offer their own social tariff schemes, hardship funds, and debt write-off programmes. Eligibility criteria and the level of support vary by company. Contact your water company directly or visit Ofwat's website which lists contact details for all regulated water companies in England and Wales.
Benefits entitlement check
A significant proportion of households entitled to means-tested benefits do not claim them. Gov.uk's benefits calculator and the independent tools available through Policy in Practice, Turn2us, and Citizens Advice can help you identify unclaimed entitlements including Universal Credit, Pension Credit, Housing Benefit (for those not on Universal Credit), Council Tax Reduction, and carer's benefits. Pension Credit in particular has low take-up despite being one of the most valuable benefits for pensioners on low incomes: as of 2025 DWP estimates, around 880,000 pensioners entitled to Pension Credit do not claim it, missing out on an average of £3,900 per year. Pension Credit also acts as a gateway benefit that triggers entitlement to the Warm Home Discount, council tax reduction, and other support.
Related guides
Frequently asked questions
How do I check what cost of living support I am entitled to?
Use gov.uk's benefits calculator or the free tool at Turn2us.org.uk, which covers over 1,000 grants and benefits. Citizens Advice also provides free, confidential advice in person, online, and by phone. These tools ask about your household composition, income, savings, and housing costs to identify all benefits and grants you may be missing.
Is the Warm Home Discount available if I use a prepayment meter?
Yes. Prepayment meter customers can receive the Warm Home Discount. For prepayment customers, the £150 is typically added as credit to your meter rather than as a reduction on a bill. Contact your supplier if you are eligible but have not received confirmation by December each year.
Can I get help with my water bill if I am on a water meter?
Yes. Water company assistance schemes and WaterSure are available to both metered and unmetered customers. WaterSure specifically applies to metered customers who use high volumes for medical reasons or who have three or more children and are on qualifying benefits. Contact your water company to discuss your options.
What is the Household Support Fund and how do I apply?
The Household Support Fund is administered by your local council. Search for your council on gov.uk and look for their Household Support Fund or welfare support pages. Some councils require an application form; others allocate automatically based on existing benefit data. Citizens Advice can help you navigate the process for your local council.
I am a pensioner. What cost of living support can I claim?
Pensioners on low incomes should check eligibility for Pension Credit, which provides a minimum income guarantee and acts as a gateway to the Warm Home Discount, Housing Benefit, and council tax reduction. The Winter Fuel Payment eligibility was narrowed in 2024 to those receiving Pension Credit or other means-tested benefits; check gov.uk for current eligibility rules.
How we verified this guide
Scheme rules and figures were verified against Ofgem Warm Home Discount guidance, DWP Household Support Fund guidance, Ofwat WaterSure rules, and gov.uk benefits information during May 2026. Unclaimed benefits estimate sourced from Policy in Practice 2024 analysis of DWP data. We do not accept payment from government agencies or benefit providers.
Primary sources
- Ofgem - Warm Home Discount scheme
- Gov.uk - Warm Home Discount eligibility
- Ofwat - Customer affordability assistance
- Citizens Advice - Benefits entitlement checker
Last reviewed: May 2026.