The draft Warm Home Discount (Amendment) Regulations 2025 were laid before the House on 19 June 2025, with a correction slip issued on 4 July in relation to the draft instrument1. The correction slip fixed a typographical error on page three, changing "Her Majesty's Treasury" to "His Majesty's Treasury", which the Minister said does not affect the substance or intent of the legislation1. The instrument was considered in Grand Committee on 3 September 20251.
The regulations amend the Warm Home Discount (England and Wales) Regulations 2022 to change eligibility criteria for the coming winter, and amend the Warm Home Discount (Scotland) Regulations 2022 to increase suppliers' non-core spending obligation by an amount considered commensurate with the expected increase in England and Wales1. They also extend the period in which rebate notices can be issued to suppliers, so that as many as possible can be issued before the current regulations expire on 31 March 20261. The scheme provides low-income and vulnerable households with a £150 rebate off their energy bills1.
The central change is the removal of the high cost to heat threshold. The Government consulted on expanding the scheme in February 20251. Removing the threshold will make all energy bill payers who receive a qualifying means-tested benefit eligible for the discount1. The Government says this brings in around 2.7 million additional households, pushing the total number of households receiving the discount in winter 2025-26 up to around 6 million, which it describes as one in five households in the UK1. A peer in the debate put the total at 6.1 million, up from an estimated 3.4 million, comprising around 3.1 million in England and around 300,000 in Scotland1.
"Removing the high cost to heat threshold will make all energy bill payers who receive a qualifying means-tested benefit eligible for the warm home discount"
The cost falls on bill payers through the levy. The Government said the cost to bill payers will rise from £15 to around £37 each, with the scheme moving from roughly £600 million to approximately £1 billion1. A peer set out the arithmetic differently: before, the cost of the levy was estimated at £22, so the net effect was £150 minus £22, which is £128; with the average levy now going up to £37 a year, the benefit drops to £113 per household1. The same peer said the cost is £20 million for suppliers and a further £15 million on the Government's side1.
On take-up, DESNZ estimates that 2.4 million households, some 28%, might not be data matched, against around 96% of discounts matched last year1. The Government also said it has decided not to proceed with the expansion of the park homes Warm Home Discount scheme at the current time1. Since 2011 the scheme has helped around 3 million low-income and vulnerable households every year, with more than £4 billion in direct assistance over 14 years1. Under the current scheme, around 1 million low-income pensioners in receipt of pension credit guarantee credit receive the £150 as an automatic rebate, and more than 2 million low-income and vulnerable households also receive rebates1.
| Measure | Figure |
|---|---|
| Rebate per household | £1501 |
| Additional households | around 2.7 million1 |
| Total households, winter 2025-26 | around 6 million (one peer said 6.1 million)1 |
| Scheme cost | roughly £600 million to approximately £1 billion1 |
| Levy cost per bill payer | £15 to around £371 |
Why it matters for households
The Warm Home Discount is a direct rebate on electricity bills, so widening eligibility changes who receives support and how much everyone else pays towards it through the levy. The Government says consumers do not need to take any action to receive it1. For households already receiving the rebate, the levy increase reduces the net value of the £150, as set out in the debate1. For households newly eligible through a qualifying means-tested benefit, the rebate is additional support on the bill. The data-matching estimate of 2.4 million households potentially not matched indicates that eligibility does not guarantee payment1. The scheme applies to electricity bill payers, which a peer noted leaves questions for households off the gas grid1. The wider context is the regulation and policy framework for household energy support and the grants and schemes landscape.
What happens next
The regulations were considered in Grand Committee on 3 September 20251. The Government intends the changes to come into effect this winter1. Rebate notices must be issued before the current regulations expire on 31 March 20261. A post-implementation review was referred to in the debate, but no date for it has been reported1.
Sources1 cited
- Warm Home Discount (Amendment) Regulations 2025 - Hansard - UK ParliamentRegulations2025), hansard.parliament.uk