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Warm Home Discount – England and Wales
12 May 2022
Type
Written Ministerial Statement
Department
Department for Business, Energy and Industrial Strategy
At a Glance
Issue Summary
The statement discusses the extension, expansion, and reform of the Warm Home Discount scheme in England and Wales to combat fuel poverty.
Action Requested
The Government is expanding the Warm Home Discount scheme by increasing funding from £350 million to £475 million (in 2020 prices) and raising rebates from £140 to £150, benefiting around 2.8 million households. The scheme will also lower supplier participation thresholds and introduce automatic identification of eligible households for Core Group 2.
Key Facts
- Warm Home Discount scheme is being extended until 2026 in England and Wales.
- Annual spending on the scheme increases from £350 million to £475 million (in 2020 prices).
- Value of household rebates will rise from £140 to £150.
- Around 2.8 million households will receive a rebate every year, with an increase of 750,000 compared to the previous scheme.
- Supplier participation thresholds lowered to 50,000 in 2022/23 and 1,000 in 2023/24.
- Around 1 million low-income pensioners will continue to receive automatic rebates under Core Group 1.
- Approximately 1.9 million households will benefit from new Core Group 2 with data-matched eligibility identification.
- All participating energy suppliers must provide or fund Industry Initiatives for fuel poor households.
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