The Warm Home Discount (Amendment) Regulations 2025
The Warm Home Discount (Amendment) Regulations 2025 amend existing regulations for England and Wales and Scotland.
For England and Wales, the amendments extend the rebate issuance period to March 31, 2026, and provide additional flexibility for suppliers and the Secretary of State in managing rebates.
In Scotland, the regulations increase the aggregate non-core spending obligation for scheme year 15 by £39 million.
The changes aim to improve the effectiveness and reach of the Warm Home Discount scheme.
Arguments For
Extended Rebate Period: The extension of the rebate issuance period to March 31st, 2026, provides additional time for eligible households to receive their discounts, potentially increasing participation and ensuring support reaches those most in need.
Increased Spending in Scotland: The £39 million increase in the Scottish scheme's spending addresses potential funding shortfalls and allows for a more robust and effective program in a region with high energy costs.
Improved Administrative Flexibility (England & Wales): Amendments to regulations relating to supplier obligations and Secretary of State discretion offer greater flexibility to manage rebates, addressing potential unforeseen circumstances and improving efficiency.
Alignment with Eligibility Statement Changes (England & Wales): The amendments allowing for a longer rebate issuance period aim to improve alignment and coordination with intended changes to the eligibility criteria for the scheme, ensuring a smoother implementation of those changes.
Arguments Against
Increased Administrative Burden (England & Wales): The changes to supplier obligations and Secretary of State discretion in England & Wales could lead to increased administrative demands and costs for energy suppliers, impacting their operational efficiency.
Potential for Unintended Consequences: Amendments to the regulations, particularly regarding flexibility on issuing rebates, could open new avenues for disputes or inconsistent application across different suppliers.
Limited Scope of Scottish Funding Increase: The increase in Scottish funding may not adequately address all challenges related to high energy costs and low-income households, potentially leaving some in need without sufficient access to support.
Impact on Supplier Profitability: The changes, especially the extended rebates deadline in England & Wales and the recalculation of non-core spending obligations in Scotland, could potentially impact the short-term profitability of energy suppliers.
The Secretary of State makes these Regulations in exercise of the powers conferred by sections 9, 10, 14, 14A(1) and 31(5) and (6) of the Energy Act 20101 (“the Act”) with the consent of the Treasury2.In accordance with section 14(1) of the Act, the Secretary of State has consulted the Gas and Electricity Markets Authority, licensed electricity suppliers, licensed gas suppliers and such other persons as the Secretary of State thinks appropriate.In accordance with section 14(5) of the Act, the Secretary of State has carried out a review of the current scheme.In accordance with section 31(2) of the Act, a draft of this instrument has been laid before and approved by resolution of each House of Parliament.
The Secretary of State, with Treasury consent, created these regulations using powers granted by the Energy Act 2010.
Consultations were held with relevant authorities and stakeholders.
A scheme review was conducted, and Parliament approved a draft of the regulations.
Part 1 Introductory Citation, commencement and extent 1. (1) These Regulations may be cited as the Warm Home Discount (Amendment) Regulations 2025. (2) These Regulations come into force on the day after the day on which they are made. (3) This Part extends to England and Wales and Scotland. (4) Part 2 extends to England and Wales only. (5) Part 3 extends to Scotland only.
Part 1 provides the citation, effective date, and geographical extent of the regulations.
The regulations are officially titled the Warm Home Discount (Amendment) Regulations 2025 and come into effect immediately after their signing.
Part 1 applies to England, Wales, and Scotland; however, subsequent parts have more limited geographical applicability.
Part 2
Amendments to the Warm Home Discount (England and Wales) Regulations 2022
2.
The Warm Home Discount (England and Wales) Regulations 20223 are amended in accordance with regulations 3 and 4.
3.
In regulation 4(3)—
(a)
in sub-paragraph (a), for “12(7) and”
substitute
; and
(b)
after sub-paragraph (b), insert—
“(ba)
the powers of the Secretary of State under regulation 11,”.“10, 12(5) to”
Part 2 amends the 2022 Warm Home Discount Regulations for England and Wales, as detailed in regulations 3 and 4.
Regulation 3 makes specific changes to regulation 4(3), altering references to other regulations and adding a new subparagraph (ba) concerning the Secretary of State's powers under regulation 11.
Regulation 4 modifies a date in regulation 8(3)(b).
In regulation 8(3)(b), for “1st March 2026”
, substitute
.“31st March 2026”
Regulation 4 changes the date in regulation 8(3)(b) of the 2022 Warm Home Discount (England and Wales) Regulations from March 1st, 2026, to March 31st, 2026.
Part 3 Amendments to the Warm Home Discount (Scotland) Regulations 2022 5. The Warm Home Discount (Scotland) Regulations 20224 are amended in accordance with regulations 6 and 7. 6. After regulation 18, insert— “Uplift of aggregate non-core spending obligation for scheme year 15 18A. (1) The aggregate non-core spending obligation for scheme year 15 is to be increased by £39 million (“the uplift”). (2) The Authority must— (a) recalculate each compulsory scheme electricity supplier’s non-core spending obligation for scheme year 15, to take account of the uplift, in accordance with paragraph (3); and (b) notify each compulsory scheme electricity supplier of its recalculated non-core spending obligation on or before the 25th working day after this regulation comes into force. (3) The non-core spending obligation must be recalculated by adding to the supplier’s non-core spending obligation (as adjusted in accordance with regulation 18) the amount of the uplift that is proportionate to that supplier’s scheme year 15 obligation percentage.”
Part 3 amends the 2022 Warm Home Discount Regulations for Scotland, as specified in regulations 6 and 7.
Regulation 6 adds a new regulation (18A) increasing the aggregate non-core spending obligation for scheme year 15 by £39 million.
This involves recalculating each supplier's obligation and notifying them within 25 working days.
In regulation 19, after paragraph (1), insert— “(1A) In scheme year 15, the amount a compulsory scheme electricity supplier must spend under this Part is their non-core spending obligation as notified in accordance with regulation 18A(2)(b).”.
Regulation 7 inserts a new paragraph (1A) into regulation 19 of the 2022 Warm Home Discount (Scotland) Regulations.
This paragraph clarifies that, for scheme year 15, the spending obligation for compulsory electricity suppliers will be the amount notified under the new regulation 18A(2)(b).
Explanatory Note (This note is not part of the Regulations) These Regulations amend the Warm Home Discount (England and Wales) Regulations 2022 to extend the period in which rebates can be issued in scheme year 15 to 31st March 2026. The amendments also extend the effect of a supplier’s obligations regarding provision of payments in response to rebate notices and the Secretary of State’s discretion to disapply the requirement to comply with a rebate in certain circumstances. This supports amendments that are intended to be made to the Secretary of State’s eligibility statement for the scheme by allowing more time for rebates to be issued. These Regulations also amend the Warm Home Discount (Scotland) Regulations 2022 to increase spending in the final year of the scheme provided for in those Regulations. A full impact assessment of the effect that this instrument will have on the costs of business and the public sector has been produced and is available at www.legislation.gov.uk. Hard copies of the impact assessment can be obtained from the Warm Home Discount Team, Department for Energy Security and Net Zero, 3-8 Whitehall Place, London, SW1A 2EG.
The explanatory note summarizes the key changes: The regulations extend the rebate period to March 31, 2026, increase administrative flexibility for suppliers in England and Wales, and provide additional funding for the Scottish scheme.
An impact assessment is available online and through the Warm Home Discount Team.