Warm Homes Discount Archives - End Fuel Poverty Coalition

Civil society urges Government to go further and faster on energy bills crisis

More than 40 charities and civil society organisations have written jointly to the Prime Minister, Chancellor and Secretary of State for Energy Security calling for urgent action to protect households from rising energy bills before this winter.

The open letter [1] warns that without further intervention “millions of households will continue to suffer.”

It comes as energy bills are forecast to rise by 18% in July and a further 4% in September. Polling for the Energy and Climate Intelligence Unit found that the cost of living was the top driver of voting intention overall and energy bills were the single biggest cost-of-living concern among voters in the recent elections.

The letter acknowledges steps already taken by the government, including the November Budget decision to move the cost of the Renewables Obligation from bills to general taxation, the additional £1.5 billion for the Warm Homes Plan, and the 21st April package accelerating the clean energy transition.

But the signatories warn these measures risk being “wiped out before households feel them” unless ambition is increased.

The letter sets out four specific actions: enhanced financial support for households this winter, including an improved Warm Home Discount and action on energy debt; completion of the break between electricity prices and volatile gas markets; expanded support for solar, heat pumps, insulation and electric vehicles, particularly for lower-income households; and a commitment to staying the course on clean power rather than new oil and gas extraction.

On the transition to moving away from fossil fuels to clean energy, the letter points to growing public appetite for change, citing heat pump orders more than doubling in March compared with February, solar installations up 80% and electric vehicle leases up 85%.

According to End Fuel Poverty Coalition research with Survation, majorities of voters across all main parties say they either already have technology to reduce their energy use and lower their bills, or that rising prices following the conflict in Iran have made them more likely to want it. Labour voters lead on 67%, followed by Lib Dems (65%), Greens (61%), Reform (58%) and Conservatives (55%). [2]

The signatories are also calling for a Warm Homes Guarantee [3] to ensure lower bills, provide independent advice, clear consumer rights and fast redress if installations go wrong, alongside protections for renters.

Despite a potential leadership challenge to the Prime Minister, the letter urges the Government to prioritise the forthcoming Energy Independence Bill after the King’s Speech, describing it as the vehicle to “make our energy cheaper, cleaner, fairer and more secure.”

Lord John Bird, a crossbench peer, signed the letter on behalf of the Big Issue and said:

“The British public punished the government at the ballot box last week for not going fast or far enough on cost-of-living pressures. Voters are fed up with being pummelled by rising household bills they simply can’t afford.

“People need to feel the change being promised in their everyday lives by the time winter rolls back in. Lower bills in warmer homes would be a good place to start.”

Simon Francis, Coordinator of the End Fuel Poverty Coalition who helped organise the letter, added:

“Voters are clearly worried by the impact of the latest energy price crisis, and are already turning in record numbers to technologies like solar power to free themselves from soaring oil and gas prices.

“The Government must now make sure that more households, regardless of their wealth, can make that switch to clean electricity too and feel the savings in their bills now.

“That means breaking the link between electricity and gas prices for good, and rapidly expanding support for solar panels, heat pumps, insulation and electric vehicles, especially for lower-income households who have the most to gain but the least ability to act alone.

“Ministers need to be on the side of bill payers, not billionaires and go much further and faster to get us off the fossil fuel rollercoaster for good.”

Jackie O’Sullivan, Executive Director of Strategy and Influence at learning disability charity Mencap, said:

“Rising energy bills hit people with a learning disability hard. Many have no choice but to use more energy – for specialist equipment, to heat their homes for longer, to simply stay safe and well. The Government has taken positive steps, but must act to tackle the crushing energy debt crisis, widen the Warm Home Discount, and deliver a social tariff that protects those with the highest unavoidable energy costs.”

Frazer Scott, CEO Energy Action Scotland, another signatory commented:

“Far too many people are trapped in a vicious cycle of debt and despair, unable to heat their homes and feed their families. Essential energy is out of reach in an enduring crisis. Break the cycle, reduce costs and increase help for those that need it most. People over profit.”

Jan Shortt, General Secretary, National Pensioners Convention, said:

“It is totally wrong that customers are always expected to pay the ever increasing price of energy. Older people, particularly those with complex health conditions, need warmth and comfort even in warmer weather. Whilst the government has taken some steps the message at the ballot box was not enough to help households stay out of debt.”

ENDS

[1] The full letter can be read as a pdf: https://www.endfuelpoverty.org.uk/wp-content/uploads/260512-PM-Kings-Speech-Letter.pdf

[2] Survation were commissioned by the End Fuel Poverty Coalition to interview 2,047 people from 2-7 April 2026. Data were weighted to the profile of the UK. Data was weighted by respondent’s sex, age, region, household income, highest qualification, and past vote (GE24, EU16).

[3] A separate letter [pdf] to the Minister for Energy Consumers on 11 May asked the Government to introduce a Warm Homes Guarantee. At its core, this must ensure that every household receiving publicly funded energy efficiency upgrades sees a tangible reduction in their energy bills, alongside improved comfort and living standards.

WARM Homes Guarantee

W: Warmth & wellbeing outcomes.

Homes must be demonstrably warmer, healthier and safer to live in, with outcomes measured in real-world conditions, not just installations signed off on paper.

A: Advice you can trust.

Every household receives independent, high-quality advice before and after work is done, delivered in a format that works for them. This includes support for the digitally excluded, help navigating choices, benefits and tariffs, and practical hand-holding, not just signposting to installer lists.

R: Rights, redress and protection.

Clear accountability, strong consumer protections and fast routes to remediation when things go wrong, including compensation and repairs. For renters, this also means protection from rent hikes or eviction linked to upgrades.

M: Measured and fair energy costs.

A clear, enforceable commitment that upgrades will deliver fair outcomes on energy costs (either lower bills or improved warmth and comfort for the same spend) backed by monitoring, transparency and redress where expectations are not met.

Government urged to prepare emergency energy bill support

The End Fuel Poverty Coalition has written to ministers urging the Government to prepare an emergency energy support framework to protect households from rising energy bills as global fossil fuel prices remain volatile.

In a new policy proposal sent to the UK Government, the Coalition warns that the current gas and oil price crisis could see millions of households in fuel poverty if bills increase again from July.

While the Ofgem energy price cap is set to fall slightly from April 2026, rising wholesale gas prices mean bills could rise sharply again this summer. Early projections suggest the average annual bill could increase and, as a result, the Coalition estimates that around 13 million households will be left spending more than 10% of their income on energy, with c.5 million spending more than 20%.

Some households are already feeling the impact of rising costs. Off-gas households relying on heating oil have reported refill prices doubling in recent weeks, LPG customers are facing rising prices, while heat network customers could soon face steep increases as energy supply contracts expire.

The Coalition’s proposals focus on targeted support for households most exposed to high energy costs, while retaining the ability to expand support more widely if the crisis deepens.

The immediate measures recommended include a new, longer-term, Alternative Fuel Support Scheme for households relying on heating oil, LPG and other off-gas-grid fuels, as well as support for heat network customers who face rising commercial energy prices.

The proposal also recommends preparing a targeted reduction in energy unit rates from July if the Ofgem price cap rises significantly, alongside faster rollout of a national energy debt relief scheme to address record levels of household debt.

For the winter, the Coalition is calling for reforms to existing schemes including further expansion of the Warm Home Discount and strengthening Cold Weather Payments so support reaches vulnerable households earlier.

Ministers are also urged to speed up reform to electricity pricing and prepare a scalable universal support package that could be activated quickly if energy prices spike further.

The Coalition says the proposals are designed to complement longer-term policies such as the Government’s Warm Homes Plan and Clean Power Plan, which aim to reduce energy bills permanently by improving energy efficiency and reducing reliance on fossil fuels.

However, campaigners warn that households still need protection from price shocks in the meantime.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said

“Millions of households are still recovering from the last energy crisis, with record levels of energy debt and many already struggling to afford their bills.

“The risk is that we see another wave of fuel poverty driven by the oil and gas price crisis caused by Trump’s war in the Middle East.

“This is history repeating itself and rather than making snap decisions, the Government should establish an emergency support framework now, so households know what support can be expected.

“Reducing energy price spikes benefits the whole country. It helps limit inflation, reduces pressure on household finances, prevents worsening fuel poverty and cuts the health impacts associated with cold homes.

“This support should be funded fairly. Energy companies and other parts of the energy industry make huge profits during periods of price volatility, so it is only right that windfall taxes and excess profits are used to help protect households from another energy price shock.”

Maria Booker, Head of Policy, Fair By Design, commented:

“The Government must use the next two and a half months to design an emergency support package that is both effective and fair. Support should be carefully targeted towards those who need it most and funded in an equitable way.

“This shock is yet another reminder of why the Government must accelerate progress on data‑matching capabilities so that support can be better targeted.

“Ultimately, reducing our reliance on fossil fuels and transitioning to clean power generated here in the UK, will mean we are not at the mercy of global energy shocks like this in future.”

Uplift Deputy Director Robert Palmer said:

“Everyone in the UK is going to pay the price if this reckless conflict continues via a ‘Trump War Tax’ that could add thousands of pounds to people’s bills.

“We risk seeing higher energy bills, more expensive petrol, pricier mortgages and bigger food bills. It’s good to see some immediate support from the government on heating oil and it’s crucial that the government provides further support if it’s needed on bills.

“The UK must also plan for the long term. What we need is to ramp up the shift to renewable power so we have cheaper energy, secure supply and a cleaner environment. Oil and gas profiteers, who stand to make billions out of the Iran crisis, should pay their share of any financial help.”

Morgan Vine, Director of Policy and Influencing at Independent Age said:

“It is clear that support is needed for older people in financial hardship who are understandably anxious about what the fuel crisis could mean for them. With over half of older people on a low income already finding it a struggle to keep up with their energy bills, many are already making tough choices, not turning the lights on at night, heating only one room even in the depths of winter, or washing in cold water.

“Older people on low incomes can’t afford to absorb any more costs; they’re already at breaking point. The UK Government must take comprehensive action now to protect everyone on a low income from sky-high energy prices.”

Jonathan Bean, spokesperson for Fuel Poverty Action, said:

“Any emergency support must recognise that electric-only homes face much higher unit prices than oil and gas households due to our rigged energy market.

“The Government must urgently break the link between gas and electricity which allows firms to inflate the price of cheap renewable energy.

“The Prime Minister must also get a grip on the huge profits that already make up £500 of the average energy bill. If the Government was serious about bringing down our bills, they would work with Ofgem to cut profits and pass the savings back to us.”

Susie Elks, Senior Policy Advisor on the UK Power System at E3G commented:

“In spite of this crisis, the government must continue to resolve the challenges which are increasing some of the underlying drivers for bills. They must lower the cost of ‘hidden taxes’ on bills, which add £11bn to households and business energy bills.

“They must solve the energy debt crisis, which is adding £50-£70 to every household’s bill.

“They must find a way for us to modernise our energy networks, which have been chronically underinvested in, whilst managing the costs to households.”

Ian Preston, Director of Development and External Affairs from the Centre for Sustainable Energy commented:

“Another fossil fuel price crisis, when many households still haven’t recovered from the last one, underlines the urgent need to support households to switch to heat pumps powered by homegrown renewable energy generation as quickly as possible. But, in the meantime though, bill payers, especially those reliant on oil or LPG, need bill support to stay warm this coming winter.”

The End Fuel Poverty Coalition brings together more than 100 charities, health organisations, housing groups, trade unions and consumer bodies working to end fuel poverty across the UK.

The full proposal has been shared with ministers and officials and the Coalition has offered to meet with the Government to discuss how the measures could be implemented.

ENDS

The full proposals can be read here.

Fuel poverty calculations are extrapolations using analyst forecasts of average energy bills and based on the data compiled in 2025 https://www.endfuelpoverty.org.uk/fuel-poverty-statistics-show-12-million-households-struggling/

Warm Home Discount extended across GB through to winter 2030/31

The £150 Warm Home Discount will be provided to eligible households every winter until 2030/1.

It follows the expansion of the Warm Home Discount last year, adding 2.7 million families to the scheme and bringing the total number of eligible households to around six million.

In England and Wales, households who are receiving a qualifying means-tested benefit should get the discount automatically.

In Scotland, the UK Government has implied that significant changes are expected. While an estimated 345,000 Scottish households will receive it automatically, some who previously received the benefit may now miss out.

A spokesperson for the End Fuel Poverty Coalition, commented:

“As gas prices continue to demonstrate their volatility, reaching an 11-month high in recent days, keeping the Warm Home Discount in place avoids a damaging cliff-edge for households struggling through a fifth winter of the energy bills crisis.

“But simply rolling it forward at the same level, with the same rules, risks locking in a scheme that we already know doesn’t reach everyone who needs help.

“If Ministers intend the Warm Home Discount to be the backbone of energy bill support to 2030, they cannot freeze it in its current form.

“Right now, too many people are left out altogether or not given enough support to make a meaningful difference. This includes households with electric-only heating, people living off the gas grid, residents of park homes and private networks, and families facing much higher costs because of disability, illness or poor housing.

“Without uplifts for high-cost households and a clear application route for those not captured by the main scheme, it will continue to miss large numbers of people in genuine fuel poverty.

“Industry Initiatives must also be properly funded and strengthened to catch those the support excludes, including people on non-standard supplies and those with additional health needs. And in Scotland, any move to automatic data-matching must be matched by expanded Industry Initiatives, clear supplier duties, and close monitoring to ensure households who previously qualified do not quietly lose support.”

The Coalition’s full response to the Government’s consultation on this issue is available as a pdf.

Vulnerable customers left waiting 19 months for winter support

Thousands of OVO customers did not receive their Warm Home Discount payments for winter 2023/24 until November 2025, more than 19 months late, leaving thousands without vital support during the coldest winter months.

Of the customers impacted, 7,726 were on the Priority Services Register and classed as vulnerable energy consumers, including 4,066 who were medically vulnerable. OVO will pay a total of £2,765,200 in compensation, including £150 to all affected customers, an additional £150 to those who are medically vulnerable, and £100 for each instance of self-disconnection between 31 March and 31 May 2024.

A spokesperson for the End Fuel Poverty Coalition, commented:
“This is a shocking failure that left thousands of vulnerable households without vital support when they needed it most.

“No one should be forced to go through winter without support because a supplier failed to meet its obligations. While compensation is right, it does not undo the harm caused by people missing out on help during the coldest months, when the risks to health and safety are highest.

“This case underlines why protections for vulnerable households must be automatic, enforceable and backed by meaningful penalties. It also shows why we need stronger consumer standards and faster redress when things go wrong. In this context, it is utterly absurd that Ofgem is currently considering plans to water down regulations in its ‘consumer outcomes’ consultation.”

Coalition responds to Warm Homes Discount Consultation

The End Fuel Poverty Coalition has responded to the government’s Warm Home Discount consultation calling for the extension of the programme to 2026 and welcoming the possibility of debt relief being introduced.

The response is summarised below and can be read in full online: https://www.endfuelpoverty.org.uk/wp-content/uploads/End-Fuel-Poverty-Coalition-WHD-Submission-FINAL.pdf

In our responses to government consultations, we have been clear that there must be urgent delivery of government promises on tackling fuel poverty, such as confirming the extension of Warm Home Discount (ideally to 2026), introduction of the promised Home Upgrade Grants and social housing decarbonisation programme.

This also needs to include an extension to the Energy Company Obligation (ECO) from April 2022- March 2026 and maintain its key focus on low income and vulnerable households.

Government should further ensure that the Shared Property Fund (SPF) helps end cold homes across the UK and plans are introduced to extend and, as suggested by National Energy Action, strengthen the increase to Universal Credit for low income households.

Therefore, the End Fuel Poverty Coalition welcomes the publication of this consultation for an extension of the Warm Home Discount.

During this extraordinary time, for many, personal finances are under intense pressure and schemes such as this will prove welcome relief for many households. Overall, the proposals within the consultation move the scheme forward in a positive direction. However, there is a need to accelerate wider reforms of the scheme.

The Coalition broadly supports the principle contained in the consultation of a debt write off. This is suggested to be capped at £2,000 in order to enable energy suppliers and delivery partners to assist customers who have a debt which is likely to be less than 4 years old, even if they have a higher than average level of debt. This will allow for more customers to be supported within the limited budget for industry initiatives, while allowing significant debt clearance for potentially more than 3,000 households.

However, this should be kept under review to ensure it meets the needs of the most vulnerable in light of Covid-19 lockdowns and the likely increase in energy usage as people stay at home.

This consultation contains welcome proposals for reform, especially within the context of Industry Initiatives, but it is clear that these tweaks in rules will only serve to remove support from one group to improve support for others.

A broader set of reforms is needed to increase the financial envelope of the scheme and to ensure that it can support all of the households that need it.

More information from our wider proposals is available in our response to the Comprehensive Spending Review.

Two million households could miss out on vital lifeline

A new report released today warns a scheme which provides a payment of £140 towards energy bills – the Warm Home Discount (WHD) – could end in March 2021, despite it providing a lifeline to millions of pensioners across Great Britain.

The authors also highlight that up to two million working age households across Great Britain could already be missing out on the energy rebate each winter, leading to difficulties keeping homes at a safe temperature.

National Energy Action (NEA) and Fair By Design (FBD) have teamed up to call for an extension and expansion of the scheme to ensure all eligible low income working age households receive the rebate automatically without needing to apply each year to their supplier.

Peter Smith, Director of Policy and Research at NEA commented:

For nine years the Warm Home Discount scheme has been hugely successful in ensuring that the most vulnerable pensioners receive vital rebates automatically and are better able to afford to keep their homes adequately warm over winter.

It’s crucial this continues. Legislative powers were also passed in Parliament three years ago which allow the Government and suppliers to provide this support automatically to working age households too but up to two million Brits are missing out on £140 energy rebates each year.

This is despite them being eligible for support and paying for the cost of the policy through their energy bills.

NEA and FBD say most poorer customers miss out each year because the Warm Home Discount is poorly advertised which means many are unaware of its existence. And even when customers are aware and apply, their applications can be unsuccessful because there is only a finite amount of money available for the limited annual budget. Smaller suppliers are also not required to provide the WHD meaning some customers switch suppliers in order to benefit from a cheaper deal but end up losing their entitlement to the £140 rebate making them worse off.

Carl Packman, Head of Corporate Engagement at Fair By Design said:

Many low income households are already compelled to make a choice nobody should have to make: to heat or to eat. At the same time many pay a poverty premium for the way they pay for household heat, which makes that desperate situation even worse.

The Warm Home Discount is a lifeline for many struggling to heat their homes, to levels many of us take for granted. But there is a risk the scheme will end in March 2021.

Putting £140 back in the pockets of millions of working age people will mean they pay a fair price for their energy. It mustn’t be underestimated just how valuable this measure will be.

NEA and FBD are calling for Government to extend and expand the Warm Home Discount scheme for at least three years and ensure smaller suppliers are also required to provide the WHD. Current powers within the Digital Economy Act allow Government to ensure that all those eligible for the WHD rebate actually receive it without reducing benefits for low income pensioner recipients who are most risk of dying over winter.

WHD Industry Initiatives also fund the work of community and voluntary organisations to deliver assistance with debt and energy advice. Without a commitment to the extension of this element of the scheme NEA and FBD have warned that this work will cease.

NEA and FBD’s full briefing highlights how this can be achieved in a cost neutral way. Smith concludes:

We hope the UK Government, Ofgem, parliamentarians, and energy companies work together in 2020 to ensure that the scheme continues and expands after 2021.