Expanding the Warm Home Discount Scheme 2025/26
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes removing the high-cost-to-heat threshold from the Warm Home Discount Scheme, making all households on means-tested benefits eligible for the £150 rebate from winter 2025/26. The scheme would also extend to park home residents without direct supplier relationships while maintaining current budget levels. Scotland would receive proportionally increased spending allocation for its Broader Group distribution.
Why it matters
This expands redistribution from energy suppliers to low-income households without changing the underlying cost structure that makes energy unaffordable. As such, it treats the symptom of expensive energy rather than addressing supply constraints or market design.
Key facts
- •£150 rebate per eligible household
- •High-cost-to-heat threshold removed for winter 2025/26
- •All means-tested benefit recipients become eligible
- •Park homes scheme extended to those without direct supplier relationships
- •Current budget maintained despite expanded eligibility
Areas affected
Related programmes
Memo
This 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 proporationally 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. Additionally, it proposes to extend the Park Homes WHD scheme to include other individuals without a direct relationship with an energy supplier while maintaining the current budget. The consultation seeks input from consumers, consumer groups and charities, Warm Home Discount recipients and obligated energy suppliers.