The Department for Energy Security and Net Zero opened a consultation on 25 February 2025 on proposals to expand the Warm Home Discount, the £150 rebate applied to eligible households' electricity bills1. The department said the expansion would bring around 2.7 million more households into the scheme, taking the total number receiving the discount next winter to an estimated 6.1 million1. It said almost 3 million more households would be eligible, including almost 1 million households with children, and that one in five families in Britain would get help with their bills under the proposals1.
The consultation proposes removing the high-cost-to-heat threshold in the current Warm Home Discount (England and Wales) Regulations 2022 for winter 2025 to 2026, and increasing the level of spend available in Scotland for suppliers to allocate through the Broader Group1. Under those changes, all households in receipt of means-tested benefits would be eligible for the £150 electricity bill rebate1.
Current qualifying routes differ by nation1:
| Nation | Current qualifying routes |
|---|---|
| England and Wales | Guarantee Credit element of Pension Credit, or a means-tested benefit plus high energy costs |
| Scotland | Guarantee Credit element of Pension Credit, a means-tested benefit in Scotland, and/or meeting the energy supplier's criteria |
The consultation was published alongside Ofgem's announcement the same day of an increase in the energy price cap for April to June 20251. The government said the price is set independently of government and reflects changes in wholesale prices and global markets, and that wholesale gas prices have risen by 15% compared with the previous price cap period, three years on from Russia's invasion of Ukraine1.
Energy Secretary Ed Miliband said:
"This is worrying news for many families. This government is determined to do everything we can to protect people from the grip of fossil fuel markets. Expanding the Warm Home Discount can help protect millions of families from rising energy bills, offering support to consumers across the country."
The government also said it will work with Ofgem to accelerate proposals on a potential debt relief scheme, first consulted on last year, targeting unsustainable debt built up during the energy crisis1. Ofgem's consultation on establishing a debt relief scheme closed on Thursday 6 February1. Ofgem estimates the plans could lower the costs of servicing bad debt by £25 to £30 per year, with the target of reducing the debt allowance to pre-crisis levels1.
Why it matters for households
The discount is a fixed £150 credit on electricity bills, so its value does not move with the price cap1. The proposals would change who qualifies rather than how much is paid: in England and Wales, receipt of a means-tested benefit would be enough, removing the separate high-cost-to-heat test, and in Scotland more supplier funding would be available through the Broader Group1. For a household near the current boundary, that shift in the qualifying rules, rather than any change in the rebate, is what would decide whether the £150 arrives. The separate debt relief work concerns money already owed rather than ongoing bills, and the £25 to £30 figure is an estimate of savings on the bad debt costs spread across all billpayers, not a payment to any one household1.
What happens next
The consultation is open; the government has not stated a closing date in this announcement1. The proposed changes would apply for winter 2025 to 20261. Ofgem's debt relief consultation closed on 6 February 2025, and the government said it will work with Ofgem to accelerate those proposals1.