Energy UK, the trade body for the UK energy industry, published its response to the Department for Energy Security and Net Zero (DESNZ) consultation "Continuing the Warm Home Discount" on 20 November 20251. The response sets out the industry's position on the future of the scheme, which provides a rebate on electricity bills to low-income and vulnerable households1.
Energy UK said it supports a five-year extension of the scheme to give policy certainty, and called for the budget to rise to at least £1.5 billion to close the fuel poverty gap1. It also wants the scheme to be progressively funded, with costs shifting from energy bills to taxation1. On how support is delivered, the response argues the scheme should move away from flat-rate rebates towards tiered support that reflects household needs, with variable payments that adjust as energy prices and market conditions change1.
"Using a combination of income, health, and energy consumption data would allow the scheme to reach households most in need and provide more meaningful support."
The response calls for cross-departmental data sharing to enable better targeting, and for the Scottish scheme to be aligned with England and Wales1. Energy UK states that the lack of data matching in Scotland increases suppliers' workload and creates additional fixed costs, and that the application route there means eligible customers miss out because they are unaware of the scheme, do not realise they qualify, or find the process too difficult1. Moving to an automated, data-matched scheme as in England and Wales would address this, it says1.
Energy UK also supports continuing the Industry Initiatives into the next scheme year1. These allow suppliers to support customers who may not otherwise be reached, through debt alleviation or write-off, advice on energy bills, and energy efficiency measures1. The response argues that fixed caps, such as debt write-off or financial assistance caps, can limit suppliers' ability to direct support where it has the most impact1.
The response was written by Rosie Nurse, Policy Manager at Energy UK, and is available as a PDF of 145 KB1.
Why it matters for households
The Warm Home Discount is a direct credit applied to electricity accounts for households that qualify, so its budget, eligibility rules and delivery method determine how many homes receive support and how much they get1. Energy UK's call for tiered and variable payments, rather than a flat rebate, would mean the amount a household receives could differ according to its circumstances and could change as prices move1. Its proposal to fund the scheme from taxation rather than energy bills would shift where the cost sits, with the levy currently recovered through bills1.
For households in Scotland, the response highlights a practical difference: support there depends on an application, while England and Wales use automated data matching1. Energy UK states that eligible Scottish customers miss out under the application route1. Alignment would change how Scottish households are identified for the rebate, though no decision on this has been reported1.
The Industry Initiatives element matters for homes in debt or needing efficiency measures, because it is the part of the scheme through which suppliers can offer write-offs, billing advice and efficiency support rather than a simple credit1. Energy UK's position is that caps on this spending limit where support can be directed1.
What happens next
The consultation response was published on 20 November 20251. No government decision on the extension, budget level, funding source, Scottish alignment or Industry Initiatives has been reported1.