The UK government has been urged to increase the value of the Warm Home Discount and expand eligibility as part of a winter support plan submitted ahead of the Chancellor’s Budget. The proposal comes from the End Fuel Poverty Coalition, which argues that the current scheme no longer provides the same level of support as when it was introduced.
The coalition’s submission focuses on changes to household energy assistance, including a higher rebate for households in the greatest need and a move away from funding the scheme through energy bills. The recommendations have been presented as measures aimed at addressing concerns over rising energy costs and energy debt.
Coalition Calls for a Higher and Wider Warm Home Discount Scheme
According to the End Fuel Poverty Coalition, the Warm Home Discount should be increased and structured into different levels of support. The organisation proposes a payment of £300 for households experiencing the deepest fuel poverty and £150 for other eligible households.
The coalition said the current scheme has declined in value over time. When it was introduced, the rebate represented around 14% of a typical energy bill, while it now represents around 8%, according to its Budget submission.
The organisation is also calling for eligibility to be extended to vulnerable households that are not currently included through means-tested benefits. This would include groups such as disabled people, people with long-term health conditions and pensioners who are not receiving Pension Credit.
The coalition has proposed that the cost of the Warm Home Discount should be moved from energy bills to general taxation. It said this change would prevent the cost of the support from being passed on through household energy charges.
The request forms part of a seven-point submission to the Chancellor. Other proposals include support for households with energy debt, long-term funding for a social tariff framework, and improvements to publicly funded home energy upgrades.
Energy Groups Highlight Concerns Over Household Costs
The End Fuel Poverty Coalition said its recommendations come as households continue to face pressure from energy costs. According to the organisation’s submission, around 13.5 million UK households spend more than 10% of their income on energy, while more than 5 million spend over 20%.
The coalition also recorded around £125 billion in profits made on UK operations by 30 energy companies since 2020, based on its analysis of published company accounts. It argues that additional funding measures should be considered without increasing household bills.
Jan Shortt, General Secretary of the National Pensioners Convention, said older people, disabled people and those on low incomes were among those facing risks from continued energy price increases.
“The continued increases in energy prices affects everyone. But older people, disabled people and those on low income face falling into debt,” she said.
According to Jonathan Bean, Policy Lead at Fuel Poverty Action, households could struggle to afford the energy needed to stay warm and safe during the winter period. He called for windfall taxes to be used to make energy more affordable.
The coalition’s Warm Home Discount proposal has not been adopted by the government and remains part of its Budget recommendations. The submission will be considered alongside wider decisions on household energy support and public spending.
