With UK energy debt standing at £3.3 billion and predictions energy costs will grow this winter, the Government is being urged to double the Warm Home Discount
As millions are expected to struggle again with energy debt this winter calls have grown for the Warm Home Discount Scheme payments to be increased(Image credit: Getty Images)
As energy price rises continue to strain household budgets across the UK, the Warm Home Discount Scheme is facing increasing scrutiny.
With the cost of living escalating and energy debt rising there are mounting calls to double this payment to prevent more families from falling into energy debt.
The proposal has been brought forward to the government to help households struggling with energy price rises.
How much does the Warm Home Discount save homeowners?
Currently, the Warm Home Discount Scheme offers £150 off electricity bills for millions of low-income households during the winter.
However, with energy prices continuing to soar, there are growing calls to double this payment.
The proposal, which was discussed with Miatta Fahnbulleh, the energy consumer minister, suggests that the additional funding could come either from raising the existing £20 levy on all power bills, through increased taxation, or a combination of both.
Miatta Fahnbulleh emphasised the government's commitment to supporting vulnerable households this winter, stating: "We are committed to putting in place winter support this October. We will be hashing out the details over the next month so that families that need it are protected in the colder months."
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Why are there calls to increase the Warm Home Discount?
The pressure to increase the Warm Home Discount comes amid escalating concerns about the rising number of households falling into energy debt.
Government statistics show that 3.1 million households qualified for the discount last winter — a significant increase from the previous year, with the number expected to rise again this year.
Energy UK, the trade body representing energy suppliers, and Citizens Advice have both brought forward proposals to double the Warm Home Discount payment.
In a recent report, Energy UK stated: “The quickest and most pragmatic way to improve short-term support is through reform of the Warm Home Discount. This £150 payment should be at least doubled for the most vulnerable households.”
The scale of the problem is highlighted by Ofgem who reported that energy debt levels have soared to £3.3 billion, with the average household debt rising by 50% in the past year and the number of households in debt increasing by 20%.
This map reveals the proportion of households reliant on Warm Home Discount payments by county/region(Image credit: gov.uk)
“Energy suppliers must play their part," says Government
In response to these challenges, the Department for Energy Security and Net Zero urged energy suppliers to do their part to support struggling households.
A spokesperson stated: “Energy suppliers must play their part to make sure struggling households are supported and do not fall into debt, and that those currently in debt or arrears are better protected.”
News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
