The Department for Energy Security and Net Zero published the outcome of its consultation on expanding the Warm Home Discount for winter 2025 to 2026 on 25 February 2025, with the government response added on 19 June 2025. The consultation ran from 9am on 20 February 2025 to 11:59pm on 24 March 2025 and drew 122 responses: 63 from organisations, including 15 energy suppliers and 40 charities, community and consumer bodies, plus 59 from members of the public1.
In England and Wales, the government intends to remove the high-cost-to-heat threshold that currently applies to households on means-tested benefits. In Scotland, it intends to increase the size of the scheme proportionally so that more households on means-tested benefits can receive support through their energy supplier's scheme. The consultation document states that all households in receipt of means-tested benefits would then be eligible for the £150 rebate1.
The government has decided not to proceed with the proposal to let households without a direct relationship with an energy supplier receive support through the Park Homes Warm Home Discount Scheme for winter 2025 to 2026, citing concerns about pressure on the existing Industry Initiatives budget1.
"The government will lay regulations for the scheme to be extended in England and Wales and for the budget for the Scottish Broader Group to be increased proportionately for winter 2025 to 2026."
| Nation | Outcome for winter 2025 to 2026 |
|---|---|
| England and Wales | High-cost-to-heat threshold to be removed for those on means-tested benefits |
| Scotland | Scheme size to be increased proportionally for the Broader Group |
| Park Homes scheme | Extension not to proceed for winter 2025 to 2026 |
The reforms take effect from the date the new regulations come into force, which the government says is likely September 2025, so that households receive their rebates over the winter1. The consultation applies to England, Scotland and Wales1.
Why it matters for households
The eligibility rules for the discount have until now excluded some households on means-tested benefits in England and Wales because of the high-cost-to-heat threshold, which relates to the cost of heating a property rather than to income alone. Removing it means eligibility turns on benefit receipt rather than on the assessed cost of heating the home. For a household that has been on a means-tested benefit but has not qualified, the £150 rebate is a direct reduction applied through the energy supplier, so it lowers the annual bill without any change to how the home is heated or powered.
The Scottish change works differently: rather than altering who qualifies, it increases the amount suppliers can spend through the Broader Group, so more households on means-tested benefits can be supported. The decision not to extend the Park Homes scheme leaves households without a direct relationship with a supplier, including some park home residents, outside the expanded arrangements for the coming winter. The wider set of home energy grants operates separately from the discount and is not altered by this outcome.
What happens next
Regulations are to be laid to extend the scheme in England and Wales and to increase the Scottish Broader Group budget proportionately. The government says these reforms will take place from the date the new regulations come into force, likely September 2025, so that rebates reach households over the winter1.