The UK Government is reviewing proposals to expand the Warm Home Discount Scheme, potentially offering a £150 energy bill rebate to an additional 2.7 million households across Great Britain from winter 2025/26.
According to Manchester Evening News, this initiative is part of a wider set of measures aimed at easing pressure on families facing rising energy bills. While full details are yet to be confirmed, the potential expansion could reshape how millions receive support during the coldest months.
Officials say they are currently analyzing feedback from a recent consultation, with further announcements expected in the coming months.
Consultation Closes on Government Support Plan
The proposed expansion follows a public consultation that ended on March 24, 2025.
The Department for Energy Security and Net Zero (DESNZ) stated that, if implemented, the scheme would raise the number of eligible households from 3.4 million to approximately 6.1 million. Nearly one million of these newly eligible households are families with children.
Ed Miliband, Secretary of State for Energy Security and Net Zero, said :
Expanding the Warm Home Discount can help protect millions of families from rising energy bills, offering support to consumers across the country.
He added :
This is a Government that will always stand up for working people.
Response to Rising Energy Costs
The consultation outcome comes amid another scheduled Ofgem increase to the energy price cap starting April 1, 2025. The average annual energy bill for households on standard variable tariffs is set to rise by 6.4%, moving from £1,738 to £1,849—an increase of £111 annually, or £9.25 per month.
According to DESNZ, this increase is driven by “gas price spikes” observed during the past winter and the continued economic repercussions from Russia’s invasion of Ukraine.
The Department also clarified that energy prices are independently set and not controlled by the UK Government.
Tackling Energy Debt and Structural Costs
In parallel with the discount scheme, the Government is working with Ofgem to introduce a new debt relief initiative aimed at addressing “unsustainable debt built up during the energy crisis”. The intention is to reduce the debt allowance that suppliers include in bills, bringing it back to pre-crisis levels.
DESNZ stated :
The proposed debt support scheme, alongside the Warm Home Discount, is an important first step to cut the costs of servicing bad debt, which is currently contributing to higher bills for all billpayers.
Ofgem estimates that these measures could lower household energy bills by £25 to £30 per year.
Ofgem Highlights Urgency of Intervention
Jonathan Brearley, Chief Executive of Ofgem, said :
Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow.
He warned :
This puts families under huge stress and increases costs for all customers. We’re working on plans that might provide households with overwhelming debt the fresh start they require to proceed.
He welcomed the Government’s support, stating :
We are pleased with the Government’s backing for these plans, and their intentions to broaden the Warm Home Discount, offering financial assistance to nearly three million additional homes in dire need.
The expansion of the Warm Home Discount is part of a wider governmental plan to address both immediate affordability issues and long-term energy resilience. Ed Miliband stressed :
Alongside this, the way to deliver energy security and bring down bills for good is to deliver our mission to make Britain a clean energy superpower — with homegrown clean power that we in Britain control.
These measures are intended not only to provide targeted relief to struggling households but also to shift the UK energy system toward a more independent and sustainable future.
