The Department for Work and Pensions (DWP) has confirmed that the £150 Warm Home Discount will remain unchanged, despite calls for a review. However, a new consultation proposal aims to expand eligibility, potentially benefiting 6 million households by next winter.
DWP’s Statement on the Warm Home Discount
During a House of Lords session this week, Baroness McIntosh of Pickering questioned the government about potential changes to the Warm Home Discount.
In response, Labour Life peer Lord Hunt of Kings Heath clarified:
- The £150 rebate will remain unchanged for the remainder of the scheme.
- A consultation has been launched to expand eligibility by removing the high-cost-to-heat threshold.
- If implemented, this change would extend the benefit to 2.7 million additional households, bringing the total number of recipients to around 6 million.
Key Proposals Under Review
The Warm Home Discount consultation explores several key reforms:
- Expanding eligibility by removing the high-cost-to-heat threshold, ensuring all means-tested benefit recipients qualify.
- Increasing support for Scottish households, allowing suppliers to distribute funds through the Broader Group.
- Enhancing the Park Homes Warm Home Discount scheme, so those without direct energy supplier contracts can receive assistance.
- Seeking feedback from consumers, charities, and energy suppliers to refine the scheme’s design beyond 2026.
The government is also considering long-term improvements, but no changes will take effect before 2026.
Additional Energy Support: Discounts for Homes Near New Pylons
In a separate announcement, the government has introduced a bill discount scheme for households living near new power infrastructure.
- Households within 500 meters of new pylons, substations, or power lines will receive up to £2,500 in discounts over 10 years (approximately £250 per year).
- The scheme will launch in 2026, covering new onshore, above-ground power projects.
- Developers will be encouraged to fund community projects (e.g., sports clubs, education programs, and leisure facilities) as compensation for infrastructure development.
While the Warm Home Discount will remain at £150, millions more households may become eligible under proposed reforms. The consultation invites feedback to shape future improvements and ensure greater accessibility.
The new pylon discount scheme will further support energy affordability, offering relief to households near power infrastructure projects from 2026 onwards.
FAQ’s
Will the Warm Home Discount increase above £150?
No, the Department for Work and Pensions (DWP) has confirmed that the Warm Home Discount will remain at £150 for the remainder of the scheme.
How is the Warm Home Discount being expanded?
A new proposal suggests removing the high-cost-to-heat threshold, allowing all means-tested benefit recipients to qualify, which could extend support to 6 million households.
When will changes to the Warm Home Discount take effect?
Any changes will likely take effect for the next winter season, with the current scheme running until 2026.
Who will benefit from the expanded Warm Home Discount scheme?
An additional 2.7 million households on means-tested benefits could qualify if the proposed changes are approved.
What is the new pylon discount scheme?
Households within 500 meters of new pylons, power lines, or substations will receive up to £2,500 in energy bill discounts over 10 years, starting in 2026.
Can people without an energy supplier qualify for the Warm Home Discount?
Yes, the proposal includes expanding the Park Homes Warm Home Discount scheme to cover individuals without direct energy supplier contracts.
How can consumers provide feedback on the Warm Home Discount consultation?
Consumers, advocacy groups, and energy suppliers can participate in the public consultation process by submitting feedback to the DWP.
What happens if the Warm Home Discount changes are not approved?
If the changes are not implemented, the eligibility criteria will remain the same, and the £150 rebate will continue under the existing regulations until 2026.
Who qualifies for the current Warm Home Discount?
The Warm Home Discount is available to pensioners and low-income households receiving means-tested benefits, with specific eligibility determined by energy suppliers.
Are there any plans to increase support beyond 2026?
The government is exploring ways to improve the Warm Home Discount scheme beyond its current expiration date in 2026.
