The UK government launched a consultation on 9 May 2022 on a proposed expansion of the Warm Home Discount scheme in Scotland1. The proposals would grow support in Scotland by around £13 million, to £49 million per year, raise the rebate from £140 to £150, and bring in an additional 50,000 Scottish households each year on top of the 230,000 already receiving payments1. The consultation ran from 9:30am on 9 May 2022 to 11:45pm on 22 May 20222.
The government said the scheme would be extended to 2025 to 2026, and that supplier participation thresholds would be lowered so that more energy suppliers take part, particularly from 2023 to 2024 onwards, mirroring how the scheme operates in England and Wales1. The Warm Home Discount in Scotland would continue to focus support on those receiving means-tested benefits such as Universal Credit and Pension Credit, with suppliers able to apply additional eligibility criteria identifying households at risk of fuel poverty, subject to approval from Ofgem1.
The government set out its position in the consultation:
"The government intend to proceed with the extension and expansion of the Warm Home Discount scheme in Scotland to 2026."
The consultation page records that 35 responses were received from energy suppliers, charities and consumer bodies, housing associations, local authorities, public bodies including Ofgem, and members of the public, with general support for the main proposals2. The government response, published on 27 June 2022, confirmed the scheme would be extended until March 2026 to coincide with the length of the scheme in England and Wales, that spending obligations in Scotland would rise proportionately in line with the Great Britain-wide increase, and that the rebate would rise to £1502. The scheme in Scotland would largely mirror the scheme previously in place across Great Britain from 2021 to 20222.
| Proposal | Detail |
|---|---|
| Scottish support | Up around £13 million, to £49 million per year1 |
| Rebate | Up from £140 to £1501 |
| Households | Additional 50,000 per year, on top of 230,0001 |
| Duration | Extended to 2025 to 20261 |
| Supplier thresholds | Lowered, particularly from 2023 to 20241 |
The scheme began in 2011 and has provided over £3 billion in direct support to households1. Ofgem, as scheme administrator, reported that in Scheme Year 11 suppliers delivered over £359 million in Warm Home Discount support, including £140 rebates to nearly 2.32 million vulnerable customers, and that from Scheme Year 12 the rebate value increased from £140 to £150 with annual support for around 750,000 additional households3. Ofgem also recorded that from Scheme Year 12 the Warm Home Discount would be separated into two schemes, one for England and Wales and a separate one for Scotland3.
Why it matters for households
The Warm Home Discount is a direct rebate on an electricity bill, not a grant for installing measures, so its value to a household is measured in pounds off a bill rather than in changes to the fabric of a home. For eligible Scottish households, the proposals would raise the rebate to £150 and widen the number of suppliers obliged to take part, which affects whether a household's own supplier is in the scheme at all. The Warm Home Discount in Scotland is administered separately from the England and Wales scheme, so eligibility and supplier participation can differ by nation. Because the discount reduces a bill rather than a home's demand for energy, it does not by itself change how much gas or electricity a property uses; that is the role of separate Scottish programmes such as the Home Energy Scotland Grant and Loan.
What happens next
The consultation closed on 22 May 2022 and the government response was published on 27 June 2022, confirming the extension to March 2026 and the £150 rebate2. Ofgem's annual report states that from Scheme Year 12 the Warm Home Discount operates as two separate schemes, one for England and Wales and one for Scotland3.