Government response to Warm Home Discount expansion consultation published

The Government published its response to the consultation on expanding the Warm Home Discount on 19 June 2025, alongside the Warm Home Discount (Amendment) Regulations 2025¹. The consultation ran from 25 February 2025 to 24 March 2025 and drew 122 responses from energy suppliers, charities, consumer affairs organisations, local authorities, housing associations, public authorities and members of the public¹.

The regulations amend the Warm Home Discount (England and Wales) Regulations 2022 and the Warm Home Discount (Scotland) Regulations 2022 to increase spending in the final year of the schemes, scheme year 15, which covers 2025/26¹. In England and Wales, the change removes the high cost to heat threshold that currently applies to working age households on means tested benefits, which the Government says would bring around 2.7 million more households where the billpayer or their partner receives a means tested benefit into the scheme¹. The Government says this pushes the total number of households receiving the discount next winter up to around 6 million¹. Support is provided primarily through £150 rebates¹.

In Scotland, the regulations increase suppliers' non-core spending obligation by an amount commensurate with the increase in England and Wales, so that more households on means tested benefits can receive support through their suppliers' schemes¹. The Government says a direct amendment to the Scotland Regulations was necessary because core spend in England and Wales is determined by the rebates issued under the eligibility criteria rather than by the regulations themselves¹.

The regulations also extend the deadline for issuing instructions to pay rebates to suppliers in England and Wales from 1 March 2026 to 31 March 2026, giving suppliers more time to distribute the increased support¹. Suppliers will continue to be required to pay consumers within 30 days of receiving a rebate notice¹. The Government has decided not to proceed with the expansion of the Park Homes Warm Home Discount scheme at the current time¹.

The scheme established by the Warm Home Discount Regulations 2011 has run for 14 scheme years, up to 31 March 2025, and the current regulations expire on 31 March 2026¹. The instrument extends to England, Wales and Scotland, with part 2 applying solely to England and Wales and part 3 exclusively to Scotland¹. It comes into force on the day after the day on which it is made¹.

Why it matters for households

Households in England and Wales where the billpayer or their partner receives a means tested benefit will no longer need to meet the high cost to heat threshold to qualify for the discount in 2025/26¹. The Government estimates around 2.7 million additional households will be brought into the scheme, taking the total to around 6 million¹. In Scotland, the increased supplier spending obligation means more households on means tested benefits can apply to their suppliers for support, at a level proportionate to the increase in England and Wales¹. The discount is delivered primarily as a £150 rebate on energy bills¹. The Park Homes scheme is not being expanded¹.

What happens next

The regulations come into force on the day after the day on which they are made¹. The deadline for issuing instructions to pay rebates to suppliers in England and Wales moves to 31 March 2026, and suppliers must pay consumers within 30 days of receiving a rebate notice¹. The current regulations expire on 31 March 2026¹.