The changes to the Warm Home Discount (WHD) that remove the high energy cost threshold for Core Group 2 rebates came into force in September 2025, according to Ofgem's annual report on scheme year 14 (SY14), which ran from 1 April 2024 to 31 March 20251. The report states that "In SY15, the high energy cost threshold for Core Group 2 rebates was removed"1. Core Group 2 covers low-income households in England and Wales that were previously required to have estimated high energy costs to qualify1.
The report sets out the scheme's delivery in SY14, the last year before the change. Suppliers provided £595.2 million of support, up almost 3 per cent on the £578.7 million spent in SY13, comprising £543.5 million in England and Wales and £51.8 million in Scotland1. Around 3.41 million £150 rebates were issued, up from 3.35 million in SY13, of which 956,967 rebates worth £143.5 million went to low-income pensioners and 2.46 million went to other fuel poor customers1. A further £83.1 million was spent through Industry Initiatives, which fund energy advice, benefit entitlement checks, small energy efficiency measures and financial support1. Lifetime spending since the scheme began in 2011 reached £5.13 billion1.
Ofgem reported non-compliance by a number of obligated suppliers, 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 late, suppliers agreed to issue £150 compensation in addition to the £150 rebate; where spending fell short, suppliers agreed additional payments to support fuel poor consumers and the shortfall was added to the following year's obligation1. Eighteen suppliers participated at the end of SY14, including two new participants, Fuse Energy and Home Energy1.
"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."
| Measure | SY14 figure |
|---|---|
| Total support delivered | £595.2 million |
| England and Wales | £543.5 million |
| Scotland | £51.8 million |
| £150 rebates issued | around 3.41 million |
| Rebates to low-income pensioners | 956,967 (£143.5 million) |
| Industry Initiatives spend | £83.1 million |
Why it matters for households
The removal of the high energy cost threshold widens the group of low-income households in England and Wales that can receive the £150 automatic rebate without having to demonstrate high heating costs, which had previously excluded some low-income homes. The report notes government confirmation of a five-year extension of the WHD including an expansion to reach a further 2.7 million households1. For a household, the rebate is applied to the electricity bill by an obligated supplier, so eligibility still depends on buying energy from a participating supplier and meeting the scheme's criteria. The separate Industry Initiatives strand is not restricted to customers of a specific supplier and targets wider groups in or at risk of fuel poverty1. Details of the grants and schemes available differ by nation, with separate arrangements for England, Scotland and Wales.
What happens next
On 25 September 2025 the Department for Energy Security and Net Zero published a consultation to continue the WHD, and the government published its response to that consultation on 30 January 20261. The report states that Ofgem's focus is on working with DESNZ, suppliers and consumer groups to implement the changes successfully1. The report does not set out the detailed content of the consultation response or the final scheme rules for future years1.
Sources1 cited
- Warm Home Discount annual report: scheme year 14, ofgem.gov.uk