Warm Home Discount (WHD): cost recovery

From:: Department for Energy Security and Net Zero
Published: 8 December 2025

Applies to England, Scotland and Wales

Summary

We are seeking views on whether WHD costs should move from standing charges to the per-unit rate.

This consultation closes at
11:59pm on 6 January 2026

Consultation description

The costs of the Warm Home Discount (£39 on the typical dual fuel bill) are recovered by suppliers through the standing charge: a fixed daily fee applied to all customers regardless of energy usage.

This consultation seeks views on the impacts of a proposal to move WHD cost recovery from the standing charge to the unit rate - the per-kWh charge for electricity and gas usage - for both consumers and suppliers. We are seeking views from energy suppliers, WHD recipients, consumer groups and consumers on how WHD costs are recovered.

Read our consultation privacy notice.

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