The Department for Business, Energy and Industrial Strategy (BEIS) published its Response to the Warm Home Discount in April 2022, the same week the National Insulation Association (NIA) submitted its response to the Welsh Government's proposals for the next iteration of the Warm Homes Programme1.
The BEIS document followed a consultation held between June and August last year, which drew 87 individual responses from across 79 organisations1. In its executive summary, BEIS set out the scheme's future funding and duration.
"In the Energy White Paper in December 2020, the Government committed to extend, expand, and consult on reforming the scheme from 2022 onwards. The scheme will be extended to 2025/26 at least and expanded to £475m (in 2020 prices) per year."
The NIA's response to the Welsh Government covered the design of the next Warm Homes Programme, which supports household energy efficiency grants and schemes in Wales. The association said the programme should take a fabric first approach and promote whole house retrofit, and supported a proposal in the optimised retrofit model to "maximise airtightness, eliminate thermal bridging, optimise insulation, solar gain and natural ventilation so reducing heat loss and making homes fabric ready"1. It also called for installations to meet PAS2035/2030 standards and for TrustMark registration to be required for all installations, suggesting this be considered for the Warm Homes Grant1.
On eligibility, the NIA said fuel poverty is highest in the 75 and over age group and suggested that group be prioritised in the next iteration of the programme. It agreed with the "worst first" principle for prioritising the most severely fuel-poor households, noting such homes tend to be more costly to retrofit because they are usually harder to treat, and said the policy cannot leave them behind. It broadly agreed the programme should be extended to owner-occupier and private rented households, noting 84% of fuel-poor households in Wales are in that sector1. It also suggested fuel poverty targets be made statutory to give manufacturers, advisory services, installers and supply chain partners certainty to invest1.
The NIA's response also covers measures to include or exclude, funding sources, and prioritisation of certain homes and residents, in a full 12-page document1. The Welsh Government's decisions on the next programme have not been reported.
Why it matters for households
The Warm Home Discount is a rebate on electricity bills for eligible households, and the BEIS response confirms it will run to at least 2025/26 with funding expanded to £475m a year in 2020 prices1. For homes in Wales, the separate Warm Homes Programme is the route through which insulation and heating measures are funded, and the NIA's response sets out where it believes that support should be targeted: the oldest households, the hardest to treat homes, and the private rented and owner-occupied sectors where most fuel-poor households sit1. The emphasis on fabric first and whole house retrofit reflects the position that reducing heat loss through the building itself is the foundation for lower bills and lower carbon, rather than replacing heating equipment alone1. The NIA also warned that, as things stand, replacing a broken boiler with a new one is more cost effective for a homeowner than installing a low-carbon alternative such as an air source heat pump1. How the Welsh Housing Quality Standard and the Arbed scheme fit alongside the next programme is not set out.
What happens next
The BEIS response confirms the Warm Home Discount is extended to 2025/26 at least, with reform from 2022 onwards1. The NIA's response to the Welsh Government consultation has been submitted; the Welsh Government's response and the final shape of the next Warm Homes Programme have not been reported1.