The government has confirmed it will proceed with the extension and expansion of the Warm Home Discount (WHD) scheme in Scotland to 2026, according to a consultation outcome published on 27 June 2022 by the Department for Business, Energy and Industrial Strategy1. The decision follows a consultation that ran from 9:30am on 9 May 2022 to 11:45pm on 22 May 2022 and received 35 responses from stakeholders including energy suppliers, charities, consumer bodies, housing associations, local authorities, public bodies including Ofgem, and members of the public1.
Under the confirmed plans, the scheme is extended until March 2026 to coincide with the length of the WHD scheme in England and Wales, and spending obligations in Scotland are increased proportionately in line with the Great Britain-wide increase, with the value of the rebate rising to £150 as per the England and Wales scheme1. The government also confirmed that supplier participation thresholds would be lowered so that more energy suppliers participate in the scheme, particularly from 2023 to 2024 onwards1. The scheme in Scotland will largely mirror the scheme previously in place across Great Britain from 2021 to 20221.
The consultation document had set out that the primary difference from the England and Wales scheme would be that non-core spending would be larger due to the increase in overall spending1. The government response states that there was general support for the main proposals in the consultation1.
"The government intend to proceed with the extension and expansion of the Warm Home Discount scheme in Scotland to 2026."
The Warm Home Discount in Scotland operates alongside the expanded and reformed Warm Home Discount for England and Wales, the details of which were set out in a separate government response published on 1 April 20221. The Scottish scheme is distinct from other support such as the Winter Fuel Payment, and sits within the broader landscape of grants and schemes available across the UK1.
Why it matters for households
The extension to March 2026 gives households in Scotland certainty that the rebate will continue for several more winters, rather than ending after the 2022 period. The increase in the rebate to £150 raises the value of the discount applied to electricity bills for eligible households1. Lowering supplier participation thresholds means more energy suppliers will be obliged to take part, particularly from 2023 to 2024 onwards, which broadens the number of households that can receive the discount through their supplier1. For a home's energy independence, the discount reduces the amount owed on electricity bills over the winter period, though it does not change the underlying unit rate or standing charge. The scheme in Scotland largely mirrors the previous Great Britain-wide scheme from 2021 to 2022, so households already familiar with how the discount was applied will recognise the structure1.
What happens next
The government response confirms the extension until March 2026 and the increase in the rebate to £1501. The lowering of supplier participation thresholds is stated to apply particularly from 2023 to 2024 onwards1. No further dated steps beyond these are set out in the consultation outcome.