The Warm Home Discount (Amendment) Regulations 2025 were considered in Grand Committee in the House of Lords on 3 September 2025, having been laid before the House on 19 June 20251. The instrument amends the Warm Home Discount (England and Wales) Regulations 2022 to change eligibility criteria for winter 2025-26 and to extend the time 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. A correction slip issued on 4 July 2025 corrected a typographical error on page three of the draft, changing "Her Majesty's Treasury" to "His Majesty's Treasury"1.
The scheme provides low-income and vulnerable households with a £150 rebate off their energy bills1. The change removes the high cost to heat threshold, which the Government said unfairly excluded some vulnerable households and many in smaller properties1. Removing it makes all energy bill payers who receive a qualifying means-tested benefit eligible1. The Government said this brings relief to around 2.7 million additional households, pushing the total receiving the discount in winter 2025-26 to around 6 million, one in five UK households1. 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.
The cost falls on bill payers through the levy. The Government said the scheme moves from roughly £600 million to approximately £1 billion, with the cost to bill payers rising from £15 to around £37 each1. A peer calculated that where the levy was previously estimated at £22, the net benefit was £150 minus £22, or £128, and that at £37 the benefit falls to £113 per household1. The Government also cited £20 million in supplier costs and a further £15 million on the Government's side1. On data matching, DESNZ estimates that 2.4 million households, some 28%, might not be data matched, against around 96% of discounts matched last year1. The Government said it has decided not to proceed with the expansion of the park homes Warm Home Discount scheme at the current time1.
"It will also extend the time 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 2026."
| Measure | Figure |
|---|---|
| Rebate per household | £1501 |
| Additional households | around 2.7 million1 |
| Total receiving, winter 2025-26 | around 6 million, or 6.1 million1 |
| Scheme cost | roughly £600 million to approximately £1 billion1 |
| Levy cost per bill payer | £15 to around £371 |
| Estimated not data matched | 2.4 million households, some 28%1 |
Why it matters for households
The Warm Home Discount is a direct credit on electricity bills, not a payment a household applies for in most cases. The Government said consumers do not need to take any action to receive it1. For homes that qualify, the £150 reduces the amount owed to the supplier over winter, which is when consumption and bills are highest. The widening of eligibility means households receiving a qualifying means-tested benefit now fall inside the scheme even where their property was not previously classed as high cost to heat1.
The trade-off sits in the levy. Because the scheme is funded through a charge on bills, the cost per bill payer rises from £15 to around £371. A peer argued that for the roughly 3.4 million households already receiving the rebate, the higher levy reduces the net value of the discount1. The Government has not accepted that framing in the debate as recorded1. For a household's energy independence, the discount lowers the cash cost of grid-supplied electricity but does not change how much energy the home uses or how it is supplied. The separate £13.2 billion confirmed at the June spending review for the warm home plan addresses housing stock and energy efficiency1.
What happens next
The current regulations expire on 31 March 20261. The instrument extends the period for issuing rebate notices before that date1. The Government said it has decided not to proceed with the expansion of the park homes scheme at the current time1. A peer raised the prospect of a post-implementation review of the regulations in a few years' time1. No further dates for the scheme beyond 31 March 2026 have been reported1.
Sources1 cited
- Warm Home Discount (Amendment) Regulations 2025 - Hansard - UK ParliamentRegulations2025), hansard.parliament.uk