Response to the Department for Energy Security and Net Zero’s proposals for continuing the Warm Home Discount
Citizens Advice welcomes the opportunity to respond to the Department for Energy and Net Zero’s (DESNZ) consultation on the Warm Home Discount (WHD). It is a vital scheme that provides support to those struggling with their energy bills, and we believe it should remain in place to continue to provide that assistance.
The Government’s decision to extend eligibility for the WHD to all households on means tested benefit, and therefore removing the high cost to heat threshold, was welcome - especially for households who have previously missed out on support. However, rising energy prices mean that at its current level, the WHD isn’t providing enough support to make a meaningful difference for those struggling most.
We recommend expanding the scheme to provide higher, more targeted payments to households who need it most. This could see around two million households with the highest energy needs receive £710 towards their energy bill, another two million with medium energy needs would receive £510, and the two million households with the lowest energy needs would receive £310. This should be funded through general taxation to avoid regressive impacts on consumers.
Alongside further changes referenced in our response, we think this approach offers the fairest and most effective way to ensure the Warm Home Discount continues to protect those most at risk from high energy costs. It also means the scheme can support the transition to clean power, by ensuring lower bills for eligible households who may be less able to respond to changes to policy levies and or changes to reward more flexible energy use.