The Winter Fuel Payment will provide eligible recipients with up to £300 towards heating costs (Image: Getty)
Millions of people across the UK are set to be affected by changes to benefits and Department for Work and Pensions (DWP) rules during the final months of 2026. The changes include support worth hundreds of pounds for some pensioners and low-income households, a major expansion of free school meals for children in Universal Credit households, and new powers allowing the DWP to recover money owed to it.
At the same time, the DWP is stepping up efforts to recover money it is owed and tackle benefit fraud and error. New powers will soon give the department greater options when dealing with outstanding benefit debts, including measures involving bank accounts and driving licences in certain circumstances.
The DWP is introducing new powers allowing it to obtain limited data from banks (Image: Getty)
Here is the full list of the key DWP and benefit changes coming before the end of 2026
You can get a Winter Fuel Payment if you were born on or before 27 June 1960 and usually live in England, Wales or Northern Ireland. If you were born on or before this date you could get between £100 and £300 to help you pay your heating bills for winter 2026 to 2027.
Most people get the Winter Fuel Payment automatically if they’re eligible. If you’re eligible, you’ll receive a letter in October or November saying how much you’ll get. The government has said that most eligible people will be paid in November or December 2026.
Warm Home Discount Scheme
The Warm Home Discount Scheme is a one-off £150 discount off your electricity bill. The scheme will reopen in October 2026. If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.
You’ll usually get the discount automatically if you’re eligible though you may need to apply directly to your energy supplier if you live in Scotland. As reported by ChronicleLive, you will qualify for the money off if you meet the criteria, such as you or your partner receiving certain means-tested benefits. Your name must also have been on the electricity bill on August 23, 2026.
In England and Wales, qualifying benefits include Universal Credit, Housing Benefit, income-related Employment and Support Allowance, Income Support, income-related Employment and Support Allowance (ESA), and pension credit, subject to the scheme’s other conditions.
Free school meals expanded for Universal Credit families
Families receiving Universal Credit will be able to access free school meals starting from the 2026/27 school year. This means that from September 2026, children in full time education in England will qualify for free school meals if their parents or carers get any amount of Universal Credit. If your household receives Universal Credit, you could save up to £495 per year per child on school lunches.
Over half a million additional pupils will become eligible for Free School Meals under the new eligibility criteria, the government has said. The change means that all households receiving Universal Credit, above the current £7,400 income cap, will qualify for this support.
DWP will take owed money directly from bank accounts
Under the powers granted by the Public Authorities (Fraud, Error and Recovery) Act 2025, the DWP will begin enforcing Direct Deduction Orders (DDOs) directly from bank accounts, including joint accounts, without a court order starting in October 2026.
Previously, the DWP had few options to pursue people who were no longer claiming benefits or in PAYE employment, meaning some who could afford to repay were simply choosing not to, it said. The DWP is now gaining additional powers to help identify incorrect benefit payments and investigate suspected fraud.
Some benefit debtors could face a driving ban
People who have stopped receiving benefits but still refuse to repay money owed to the DWP could be banned from driving under the new powers that are gradually being enforced from October. The DWP said it is writing to thousands of people with outstanding debts, warning them to “get in touch and pay up, or face the consequences.”
The DWP will be able to go directly to a person’s bank to “claw back” cash owed, without needing a court order. In the most serious cases, it can ask a court to strip persistent dodgers of their driving licence.
Courts can only impose a driving ban where the debt is at least £1,000, and no one can be disqualified if they have an essential need for their licence, for example work that relies on driving, such as a courier or caring responsibilities. Any ban is initially suspended as long as repayment terms are kept to, the DWP added.
