The Department for Energy Security and Net Zero (DESNZ) published a consultation on 25 February 2025 on continuing and expanding the Warm Home Discount (WHD) scheme for scheme year 15 (SY15), according to Ofgem's annual report on the scheme1. The changes were to come into force in September 20251. Ofgem's report records that the government published its response to the consultation on 30 January 20261.
The WHD is administered by Ofgem on behalf of government, with DESNZ setting policy and holding overall responsibility for the scheme, while Ofgem sets suppliers' obligations, monitors compliance and reports on performance1. The scheme delivers automatic £150 rebates to eligible households and funds wider support through Industry Initiatives1.
One change confirmed for SY15 concerns eligibility for Core Group 2 in England and Wales, which covers low-income households with estimated high energy costs. Ofgem states:
"In SY15, the high energy cost threshold for Core Group 2 rebates was removed."
The report adds that customers are eligible for Core Group 2 if they are on low income and have high energy costs, with the high energy cost condition applying in SY12 to SY14 only1.
In the most recent completed year, SY14, which ran from 1 April 2024 to 31 March 2025, suppliers delivered £595.2 million of WHD support, up almost 3 per cent on the £578.7 million spent in SY131. That comprised £543.5 million in England and Wales and £51.8 million in Scotland1. Around 3.41 million £150 rebates were provided, up from 3.35 million in SY131. Of these, 956,967 rebates worth £143.5 million went to eligible low-income pensioners, down slightly on 959,826 in SY13, while 2.46 million other customers received rebates, up from 2.39 million1. Suppliers spent a further £83.1 million through Industry Initiatives, up from £76.4 million in SY131. Lifetime spending since the scheme began in 2011 reached £5.13 billion1.
| SY14 measure | England and Wales | Scotland | Total |
|---|---|---|---|
| WHD support delivered | £543.5 million | £51.8 million | £595.2 million |
| £150 rebates | 3.14 million | 276,672 | around 3.41 million |
| Rebates to low-income pensioners | 866,000 | 90,967 | 956,967 |
| Industry Initiatives spend | £72.9 million | £10.3 million | £83.1 million |
Ofgem's report also records non-compliance by some suppliers during SY14, mainly late rebate payments or spending shortfalls, representing 6.7 per cent of rebates and 0.2 per cent of suppliers' other spending obligations1. Where rebates were issued late, suppliers agreed to issue £150 compensation to those affected in addition to the £150 rebate, and where spending shortfalls occurred, suppliers agreed to make additional payments to support fuel poor consumers, with the shortfall added to the next year's obligation1. Two new suppliers, Fuse Energy and Home Energy, were required to participate during SY14, bringing the total to 18 suppliers at the end of the year1.
Why it matters for households
The WHD is one of the main routes by which a household on a low income can have money taken off its electricity bill without switching supplier or installing anything. The rebate is applied automatically for Core Group households, so eligibility turns on receipt of qualifying benefits rather than on any action by the household1. Removing the high energy cost threshold for Core Group 2 in SY15 widens the group of low-income households in England and Wales who qualify, since the assessment no longer depends on estimated energy costs1. For a household's energy independence, the practical effect is a smaller annual bill rather than any change in how the home is heated or powered. The separate Industry Initiatives funding pays for energy advice, benefit entitlement checks, small energy efficiency measures and financial support, which can reach households that are not customers of a particular supplier1. Ofgem's report notes that the government has confirmed a five-year extension of the WHD including an expansion to reach a further 2.7 million households1. The regulation-policy framework behind the scheme sits with DESNZ, while delivery and compliance monitoring are handled by Ofgem. The scheme operates across Great Britain, with separate arrangements in Scotland and Wales.
What happens next
The changes consulted on were due to come into force in September 20251. The government published its response to the consultation on 30 January 20261. Ofgem states that its focus is now on working with DESNZ, suppliers and consumer groups to make sure the scheme is administered efficiently, support reaches all eligible households and the changes are implemented successfully1.
Sources1 cited
- Warm Home Discount annual report: scheme year 14, ofgem.gov.uk