Warm Homes Discount expansion plan

The Government is planning to expand its Warm Homes Discount (WHD) scheme to more households on low incomes - and extend the programme to 2031.

The proposed expansion of the scheme could result in millions more people on low incomes receiving £150 rebates on energy bills.

Originally due to expire next year, a new consultation on the issue also proposes extending the programme for another five years.

What's included? 

Included in the plans are proposals to: 

• Streamline the proess: The current system has two sets of core groups pensioners and those on qualifying benefits. Merging these groups will make it simpler for tenants to apply and qualify for the £150 rebate.  

• Automate payments: The Government will work with energy companies to make automatic payments into the accounts of customers. 

• Expand eligibility: The current scheme uses a ‘high-cost-to-heat test’ for people who apply. This consultation proposes to remove this, instead, the only qualification will be if the person is on certain benefits or in receipt of a state pension.  

Will the changes impact landlords? 

Yes, these changes will have an impact on landlords, in particular, those who rent to low income tenants.

The expansion of eligibility will mean that financial pressures on tenants are be eased.

Because of this, landlords also have a role to play in ensuring their tenants are informed of their eligibility, as, although applications for the rebate will now be automatic, some tenants may still miss out still. 

What does the NRLA think?

We are backing the proposals, as well as asking the Government to extend the sheme to tenants whose bills are bundled into rents, as well as offering long term support to help landlords improve the energy efficiency of their properties in order to reduce the cost of energy bills and meet proposed new energy efficiency standards.

• Support for the scheme: We support the extension of the scheme as it is a valuable way of keeping energy costs down for those on low income. Expansion of the schemes timeline as well as its eligibility rules will help get the rebate to millions more people.  

• Rebates for bills included tenancies: Many low-income tenants live in rented properties where they are not named as the bill payer. This means that they won’t qualify for the rebate. The Government should look into creating a mechanism whereby the rebate can be handed to tenants that are signed onto bills included tenancies.  

More information

If you are interested in responding to the consultation, you can do so here.