Warm Home Discount scheme WHD

[edit] Background to the Warm Home Discount scheme

The Warm Home Discount scheme (WHD), started on 1 April 2011 and was originally to end on 31 March 2015, it has since been extended and adapted on numerous occaisions. It has most recently been incorporated into the Labour governments Warm Homes Plan which includes a number of different measures and a target to to lift over 1 million households out of fuel poverty by 2030.

[edit] What does it provide?

The WHD scheme itself provides a discount of £150 off electricity bills between October and March for eligible customers in England, Wales and Scotland. Eligible customers are essentially those who get the Guarantee Credit element of Pension Credit or have a low income and high energy costs. Electricity suppliers will apply the discount to the bill automatically in England and Wales if eligible. In Scotland people on low income need to contact their energy suppliers to apply.

The WHD has been a key policy in the government’s approach to tackling fuel poverty and reducing the energy costs of low-income and fuel poor households since its inception in 2011. Over that period, it has helped up to 3 million low-income households annually with their energy costs. As required by the Regulations governing the Warm Home Discount scheme for E&W and Scotland.

[edit] WHD Consultation

On 25 February the government launched an open consultation 'Expanding the Warm Home Discount Scheme, 2025 to 2026' closing on 24 March 2025. The Warm Home Discount scheme currently runs to March 2026 (as set out in the regulations). It is consulting on the scheme looking beyond the expiration of the current regulations, to ensure that the Warm Home Discount scheme is designed in such a way that improves the support provided to fuel poor households.

The consultation sets out proposals to expand the reach of the Warm Home Discount Scheme by removing the high-cost-to-heat threshold in the current Warm Home Discount (England & Wales) Regulations 2022 (for winter 2025/26) and increasing the level of spend available in Scotland for suppliers to allocate through the Broader Group. All households in receipt of means-tested benefits would then be eligible to receive the £150 rebate.

It is estimated that expanding the scheme in this way would offer support to an additional 2.7 million households, so around 6.1 million in total for winter 2025/26. Around one in four households with required energy costs exceeding 10% of their after-housing-cost income currently receive a £150 rebate. By extending the scheme to all households on means-tested-benefits, this figure would rise to around 45% of such households receiving the rebate. Extending the scheme would also almost double the number of households with children that receive the Warm Home Discount, to 1.9m.

[edit] Labour's Warm Homes Plan

The expansion of the WHD is a component part of the current Labour governments Warm Homes Plan which was annopunced in November 2024 and aims to transform homes across the country by making them cleaner and cheaper to run, from installing new insulation to rolling out solar and heat pumps. As the first step towards the Warm Homes Plan, the government has committed an initial £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency, with £1 billion of this allocated to next year. Other elements of the Labour Warm Homes Plan (some of which are continuations from the previous Conservative government policies) include:

• Boiler Upgrade Scheme: Grants of up to £7,500 to support the installation of air source heat pumps, ground source heat pumps and biomass boilers.
• Warm Homes: Local Grant: A £500 million fund launching in 2025 to provide energy upgrades for low-income households.
• Warm Homes: Social Housing Fund Wave 3: £1.2 billion has been allocated as part of the budget to be delivered from 2025 until 2028 by eligible social housing landlords.
• Boosting minimum energy standards: Raising the required energy efficiency ratings for rented homes (private and social housing) by 2030. This includes proposals to make EPC (Energy Performance Certificate) Band C the minimum standard.
• And the Warm Home Discount to help with energy bills, supporting low-income households as described above.

[edit] Government help with energy bills

The Warm Home Discount Scheme has been one of a number of measures introduced by UK governments to Help with energy bills (Research Briefing 30 September, 2024) other measures include:

• Winter Fuel Payment; tax-free annual payment to help older people meet fuel bill costs in England and Wales. From November 2024, paid only to those in receipt of Pension Credit, other means-tested benefits, or tax credits. The Social Fund Winter Fuel Payment Regulations 2024 (16th Sept 2024) for England and Wales only.
• Cold Weather Payments; to certain recipients of Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Universal Credit, or Pension Credit in England, Wales and NI during very cold weather. From 1 November 2024 to 31 March 2025 payments will not affect benefits.
• The Winter Heating Payment; Scottish replacement for the Cold Weather Payment, the amount paid to eligible households does not depend on weather conditions. It will be paid from December 2024.
• The Household Support Fund, allows local authorities (County Councils and Unitary Authorities) in England to make discretionary payments to people most in need to help towards the rising cost of food, energy, and water bills and wider essentials. Authorities provide a basic safety net support to an individual, regardless of their immigration status, such as individuals with no recourse to public funds. Due to expire end September 2024 but extended to the end of March 2025. Payments made in arrears until December 2024/January 2025.
• The Affordable Warmth Scheme; Northern Ireland equivalent of the Warm Home Discount scheme addressing the effects of fuel poverty and energy inefficiency. The scheme is directed at low-income households and provides grant supports of up to £7,500 depending on the energy efficiency measures recommended by the Technical Officer. For houses in need of solid wall insulation, the grant-aid pays up to £10,000.

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