The Warm Home Discount (Amendment) Regulations 2025 were considered and agreed in the House of Lords Grand Committee on 3 September 2025. The instrument was laid before the House on 19 June 2025, with a correction slip issued on 4 July correcting a typographical error on page three, changing "Her Majesty's Treasury" to "His Majesty's Treasury"1.
The regulations amend the Warm Home Discount (England and Wales) Regulations 2022 to change eligibility criteria for winter 2025-26, 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 Wales. 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 bills. Removing the high cost to heat threshold will make all energy bill payers who receive a qualifying means-tested benefit eligible. The government said this will bring relief to around 2.7 million additional households, pushing the total receiving the discount in winter 2025-26 to around 6 million, which it described as one in five households in the UK1. A peer put the total at 6.1 million, up from an estimated 3.4 million, around 3.1 million in England and around 300,000 in Scotland1.
"In February 2025 we consulted on expanding the warm home discount scheme"
The government said the cost of the scheme will rise from roughly £600 million to approximately £1 billion, with the cost to bill payers rising from £15 to around £37 each. A peer said the previous levy cost was estimated at £22, giving a net benefit of £128 from the £150 rebate, and that at £37 the net benefit would fall to around £113 per household1. The government also cited the £8 reduction in operating costs that took effect in July, and £13.2 billion confirmed at the June spending review for its warm home plan1.
| Figure | Before | After |
|---|---|---|
| Households receiving discount | around 3.4 million | around 6 million (a peer said 6.1 million) |
| Scheme cost | around £600 million | approximately £1 billion |
| Cost to each bill payer | £15 | around £37 |
The government said DESNZ estimates that 2.4 million households, some 28%, might not be data matched, against around 96% of discounts matched last year. It also said it has decided not to proceed with the expansion of the park homes Warm Home Discount scheme at the current time1. A peer raised concerns about park home residents being excluded and about the levy's effect on households that already pay it1.
Why it matters for households
The Warm Home Discount is a direct rebate on electricity bills, not a payment from general taxation, so its expansion is funded by a levy on bill payers. The government's own figures show the per-household levy rising from £15 to around £37, which means households that do not qualify for the rebate pay more, while those that do receive £150. A peer argued this leaves the previously eligible group worse off in net terms, at around £113 rather than £1281. For a household's energy independence, the change shifts more of the cost of support onto the standing charges and unit costs that all bill payers meet, and it does not alter how much energy a home uses or how well it retains heat. The government said consumers do not need to take any action to receive the discount, and that around 1 million low-income pensioners on pension credit guarantee credit receive it automatically1. Data matching remains the main route by which eligible households are identified, and the government's own estimate that 2.4 million eligible households may not be matched indicates that receipt is not automatic for everyone1.
What happens next
The regulations were agreed in Grand Committee. The government said the support comes into effect this winter, and that the instrument extends the time for issuing rebate notices before the current regulations expire on 31 March 20261. A peer said a post-implementation review is expected in a few years' time1.
Sources1 cited
- Warm Home Discount (Amendment) Regulations 2025 - Hansard - UK ParliamentRegulations2025), hansard.parliament.uk