Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted in Part
Warm Home Discount scheme excludes high-energy-using vulnerable individuals from vital support
Conclusion
The Department said that the “biggest item of support” available to mitigate high energy prices this winter for vulnerable consumers, mainly those on benefits such as pension credit, is the Warm Home Discount scheme,47 which provides a £150 discount to eligible consumers.48 But certain vulnerable individuals like those with chronic conditions or disabilities that mean they are higher energy users are excluded from receiving this support because they are not included in the category of means–tested benefits.49 Written evidence we received from Sense showed that, on average, disabled households face energy bills 25% higher than non–disabled households; and, as of May 2024, 37% of disabled people on benefits were behind on energy bills.50 Consumer debt advice and support
Government Response Summary
The government is considering options for better targeting of bill support schemes and working with other government departments to unlock data to enable targeting support more effectively to those who need help with their energy bills; also expanding Warm Home Discount Scheme.
Government Response
Accepted in Part
HM Government
Accepted in Part
3.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2025 3.2 The Warm Home Discount scheme currently supports over 3 million low income and fuel poor households with an annual energy bills rebate of £150. The government has consulted on expanding eligibility in England and Wales to all households where the bill payer (or their partner or nominee) is in receipt of means tested benefits, with a proportionate increase in the funding available through the Scottish scheme. Under the expansion, it is estimated that 1.6 million fuel poor households across Great Britain would receive the rebate, representing an increase of around 500,000 compared to the current scheme. In total the expansion of the scheme is estimated to reach a further 2.7 million households. 3.3 The department is considering options for better targeting of bill support schemes, including in the event of a future energy crisis. DESNZ is working closely with other government departments to unlock the data that will enable targeting support more effectively to those who need help with their energy bills. The department is working with relevant stakeholders, including advocacy charities, to inform this work. Ministers regularly meet with a range of stakeholders to discuss fuel poverty strategy, and this has included the National Housing Federation.