Warm Home Discount (WHD)

About The Scheme

The Warm Home Discount (WHD) scheme supports those on low-income and who are vulnerable to cold-related illness or living wholly or mainly in fuel poverty and came into effect in April 2011. The government has extended the scheme through to March 2026. The scheme requires domestic energy suppliers with over 1000 customers to provide an annual discount to customer bills.  

Some smaller suppliers that are not obligated under WHD also voluntarily participate in part of the scheme, this is explained in the scheme overview below. 

You can find the list of participating energy suppliers in the Eligibility section.

The Department for Energy Security and Net Zero is responsible for WHD policy and legislation and administers the Core Groups and the Broader Group. Ofgem’s role is to administer the Industry Initiatives and facilitate suppliers’ compliance with the scheme.

Scheme overview

The scheme is split into scheme years. 2023-24 ended on 31 March 2024. 2024-25 started on 1 April 2024 and will run until 31 March 2025. From 2022-23 onwards there have been two separate Warm Home Discount schemes, one for England and Wales and one for Scotland. For options in Northern Ireland visit the Affordable Warmth scheme web page.

The Warm Home Discount scheme in England and Wales has three different elements: Core Group 1, which is for those who receive the Guarantee Credit element of Pension Credit; and Core Group 2, which is for low-income customers with high energy costs. Core Groups 1 and 2 provide an annual £150 discount on energy bills. The third element is Industry Initiatives, which provide wider support to customers who are in or at risk of fuel poverty through a variety of activities, such as energy advice and energy debt write-offs.

In Scotland, the three elements of the scheme are referred to as the Core Group, Broader Group and Industry Initiatives. Core Group in Scotland works equivalently to Core Group 1 in England & Wales, and Industry Initiatives work as described for England & Wales. Broader Group is for customers identified by their supplier as being at risk of fuel poverty, and provides an annual £150 discount on energy bills. You can find out more about the eligibility criteria for the scheme in the Eligibility section.

For the 2022-23 scheme year 12 energy suppliers with over 50,000 domestic customers were required to participate in all three elements of the scheme. These suppliers are called compulsory suppliers. From the 2023-24 scheme year 13 onwards, energy suppliers with over 1,000 domestic customers are required to participate in all elements of the scheme. This will enable more eligible customers to benefit. Suppliers who volunteer to participate only take part in Core Groups 1 and 2 in England and Wales, and Core Group only in Scotland.