Warm Home Discount Scheme 2021 to 2022
Applies to England, Scotland and Wales
Read the full outcome
Detail of outcome
Having considered the responses, we intend to proceed with the proposed one-year extension of the Warm Home Discount scheme, and to implement the key proposals in the consultation.
This includes maintaining:
- the current rebate amount of £140
- Core and Broader Group eligibility criteria
- energy supplier participation thresholds
We will also introduce some changes to the scheme operation and Industry Initiatives, such as:
- a cap on the individual energy debt write-off allowed
- the removal of restrictions on providing financial assistance to households eligible under the Core and Broader Groups
- requiring provision of smart meter advice as part of Industry Initiatives
- introducing consumer protection requirements for boiler and central heating system installations under industry initiatives through registration with TrustMark
The only proposals we do not intend to take forward are:
- the introduction of technical monitoring for boilers and central heating systems installed or repaired under the scheme, as auditing will be covered by TrustMark registration
- the requirement on failing energy suppliers to report on paid and unpaid Core and Broader Group customers and Industry Initiatives spending, as similar outcomes will be achieved by newly introduced Customer Supply Continuity Plans under Ofgem’s Supplier Licensing Review
Subject to Parliamentary approval of the amending legislation, the regulations covering the new scheme year will take effect in the summer and provide continuity for winter 2021 to 2022. While the regulations will come into force after the usual start of the scheme year, we intend Industry Initiatives spending to count towards non-core obligations from 1 April 2021, as long as they are subsequently approved by Ofgem.
As outlined in the Energy White Paper 2020, we intend to consult later this year on the future of the scheme beyond 2022, including on reforms to better target fuel poverty.
Detail of feedback received
We received 52 responses to the consultation from:
- energy suppliers
- charities
- local authorities
- public bodies, including the energy regulator, Ofgem
- private sector organisations
- members of the public
There was general support for the Warm Home Discount scheme’s extension and the main proposals in the consultation.
Original consultation
Consultation description
This consultation proposes to extend the Warm Home Discount scheme to winter 2021 to 2022 in Great Britain.
It also proposes a number of minor changes to industry initiatives, small operational changes and some considerations around the future of the scheme, beyond the one-year extension.
The accompanying Impact Assessment sets out the impact of the series of proposed delivery options for 2021 to 2022 and provides an overview of the costs accompanying the scheme.
The 2 templates relate to questions 4 and 15. Please complete and return them along with your response:
- question 4 - save the completed Broader group composition template with the filename ‘your-name-or-organisation-WHDBG2122’
- question 15 - save the completed Administrative costs template with the filename ‘your-name-or-organisation-WHDAdm2122’
See the BEIS consultation privacy notice.
Please do not send responses by post to the department at the moment as we may not be able to access them.
Documents
Updates to this page
Last updated 26 February 2021 + show all updates
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Government response and final consultation impact assessment published.
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First published.