StepChange published its response in November 2025 to a Department for Energy Security and Net Zero (DESNZ) consultation on continuing the Warm Home Discount scheme. The debt charity said it welcomed the proposal to keep the scheme running for a new five-year period from winter 2026/27 to 2030-31, a stretch in which around 6 million Great British households are expected to benefit this winter1.
The charity's central criticism concerns the level of the payment. The discount was introduced in 2011 as a single £120 sum over winter and has risen by only £30 over its lifetime, and by just £10 since winter 2014/15, while energy costs have far outstripped those changes1. StepChange also welcomed the government's intention to retain the Industry Initiatives element of the scheme, which it said provides a further route for practical support including debt advice and energy efficiency advice1.
StepChange's response cites polling it commissioned in September 2025, which found that 31% of UK adults were worried about paying their energy bills over the next six months, rising to 40% of those receiving benefits and 53% of those receiving Universal Credit1. It also cites the latest Ofgem figures showing customer debt to energy suppliers has reached a record £4.4 billion, and states that energy arrears are the most common priority debt its advice clients face1.
The charity said the government acknowledges the limits of the current scheme, quoting DESNZ as saying the amount of support available "is insufficient to fully alleviate the level of fuel poverty faced by many households", and expressing an intention to explore improvements in both the level of support and the reach of the scheme1.
"We welcomed the opportunity to respond to this Department for Energy Security & Net Zero (DESNZ) consultation on continuing the Warm Home Discount (WHD) scheme."
StepChange's asks include a nationwide energy debt relief scheme to tackle historic debt, an intervention it says Ofgem is currently pursuing, alongside work to raise standards in the energy debt pathway1. It also wants eligibility criteria made more effective, which it says would be best facilitated by improved data-sharing, and argues the scheme should be made fit for purpose if it is to act as a form of social tariff1.
| Point | Figure |
|---|---|
| Proposed extension | Winter 2026/27 to 2030-31 |
| Expected beneficiaries this winter | Around 6 million GB households |
| Initial payment, 2011 | £120 over winter |
| Increase over lifetime | £30 |
| Increase since winter 2014/15 | £10 |
| Record customer debt to suppliers | £4.4 billion |
Why it matters for households
The Warm Home Discount is a direct credit applied to electricity bills for eligible households, so its continuation to 2030-31 gives certainty to the roughly 6 million households expected to receive it this winter1. The figures above show the payment has grown far more slowly than bills, which means its contribution to a household's annual energy costs is smaller in real terms than when it began. For a home trying to reduce its dependence on bill support, the scheme's Industry Initiatives strand matters because it funds advice and debt support rather than only a one-off credit1. The separate question of historic arrears, which StepChange says is the most common priority debt among its clients, sits outside the discount itself1. Households comparing support routes can read our guides to Warm Home Discount vs Winter Fuel Payment and energy social tariff vs Warm Home Discount, while ECO4 covers supplier-funded efficiency measures.
What happens next
StepChange said its response recognised there are legislative limitations to the changes the government can make in the design of the 2026/27 scheme year, and that it looks forward to engaging with DESNZ on planned work to explore improvements beyond next winter1. No date has been reported for the government's response to the consultation or for a decision on the extension. The consultation itself was run by DESNZ; the wider process by which such proposals become rules is set out in our guide to energy consultations.
Sources1 cited
- Consultation Response: Warm Home Discount Scheme.StepChange, stepchange.org