Energy suppliers delivered £595.2 million of support to households under the Warm Home Discount in scheme year 14, which ran from 1 April 2024 to 31 March 2025, according to Ofgem's annual report on the scheme1. That was £18.2 million above the £577 million budget for the year and up almost 3% on the £578.7 million spent in scheme year 131. Of the total, £543.5 million was delivered in England and Wales and £51.8 million in Scotland1.
Around 3.41 million £150 rebates were issued, up from 3.35 million in scheme year 13, comprising 3.14 million in England and Wales and 276,672 in Scotland1. Of those, 956,967 rebates worth £143.5 million went to eligible low-income pensioners, down slightly on 959,826 in scheme year 131. A further 2.46 million rebates went to other customers, up from 2.39 million, with £340.7 million to low-income households with high energy costs in England and Wales and £27.9 million to customers in or at risk of fuel poverty in Scotland1. Suppliers spent a combined £83.1 million on Industry Initiatives, up from £76.4 million, split £72.9 million in England and Wales and £10.3 million in Scotland1. Lifetime spending since the scheme began in 2011 has reached £5.13 billion1.
Eighteen suppliers were participating at the end of the year, including two new entrants, Fuse Energy and Home Energy1. Ofgem reported non-compliances from obligated suppliers, mainly late rebate payments or spending shortfalls, affecting 6.7% of rebates and 0.2% of other spending obligations1. Where rebates were late, suppliers agreed to pay £150 compensation on top of the £150 rebate; where spending fell short, suppliers agreed additional payments to support fuel poor consumers, with the shortfall added to the following year's obligation1.
"Overall, the scheme delivered more support to a greater number of households than ever before, with over 3.41 million rebates delivered to eligible customers."
The report states that an interim Core Group reconciliation ran between February and March 2025 and a final reconciliation took place in November 2025, with all participating suppliers required to make payments doing so in full on both occasions1.
Why it matters for households
The Warm Home Discount is a £150 rebate applied to the electricity bills of eligible households, delivered automatically to low-income pensioners in receipt of Pension Credit Guarantee Credit and, in England and Wales, to low-income households with high energy costs1. In Scotland, a Broader Group covers a wider set of fuel poor customers1. Households must buy their energy from an obligated supplier and meet eligibility rules to receive a rebate, though Industry Initiatives, which fund energy advice, benefit entitlement checks, small energy efficiency measures and financial support, are often open to wider groups and not restricted to a single supplier's customers1. For a home weighing up energy grants in England, energy grants in Scotland or energy grants in Wales, the rebate is a bill credit rather than funding for insulation or heating measures, and it sits alongside rather than replaces the Energy Company Obligation and devolved grant schemes. The report records that late payments left thousands of vulnerable households without timely support, and that compensation was agreed in those cases1.
What happens next
The report states that the high energy cost threshold for Core Group 2 rebates was removed in scheme year 151. On 25 September 2025 the Department for Energy Security and Net Zero published a consultation on continuing the Warm Home Discount, and the government published its response on 30 January 20261. Ofgem states that the government has confirmed a five-year extension of the scheme including an expansion to reach a further 2.7 million households1.
Sources1 cited
- Warm Home Discount annual report: scheme year 14, ofgem.gov.uk