My noble Friend the Parliamentary Under Secretary of State for Business, Energy and Corporate Responsibility (Lord Callanan) has today made the following statement:
Upgrading our homes to be more energy efficient is the best long-term solution for reducing our energy costs and keeping ourselves warm in winter. However, this takes time, which is why the warm home discount remains a key policy for tackling fuel poverty now. For 11 years, the warm home discount has provided vital help with energy bills to households on the lowest incomes. Last summer, the Government consulted on the future of the warm home discount scheme in England and Wales, and today, the Government have laid the regulations for extending, expanding, and reforming the scheme to 2026.
From this winter, the Government are expanding the warm home discount scheme. The annual spending envelopes will increase from around £350 million to £475 million (in 2020 prices), and the value of the household rebates will rise from £140 to £150. As a result, around 2.8 million households in England and Wales will receive a rebate every year, 750,000 more compared to the previous scheme. We are also lowering the energy supplier participation thresholds from 150,000 domestic customer accounts to 50,000 in 2022-23 and 1,000 in 2023-24, meaning that almost all customers will be with a participating supplier and thereby reducing the barriers for people switching energy suppliers.
Under the scheme, around 1 million low-income pensioners will continue to receive their rebates automatically through the core group 1 element of the scheme. It is right that we protect this low-income vulnerable group susceptible to the effects of living in a cold home.