Draft Warm Home Discount (Scotland) Regulations 2026

Harriet Cross Excerpts

Monday 27th April 2026 General Committees

[Harriet Cross (Gordon and Buchan) (Con)]

It is a pleasure to serve under your chairmanship, Sir Desmond. As the Minister has outlined, the draft regulations set out provision for the continuation of the warm home discount in Scotland through to 2031. The Conservatives will not oppose them: with a few changes, they will simply extend to 31 March 2031 the current scheme, which ended on 31 March 2026. However, it will have escaped no one’s attention that today is 27 April—not 31 March, which was four weeks ago. Will the Minister address that apparent delay?

The Conservatives do not want to see anyone struggling to pay their energy bills or having to choose between heating their home and going cold. That is especially important in Scotland, where it does not need saying that the winters are very long and very cold. Some of my constituents in Gordon and Buchan and others across Aberdeenshire live in areas that often record low temperatures each year. However, we have some reflections on the mechanism by which the warm home discount helps with bills. At its core, it is a taxation-funded redistribution mechanism. It does not reduce the cost of electricity; it takes money from all taxpaying bill payers, including those who are struggling themselves, and redistributes it to a defined group. It does not make electricity affordable for everyone.

There is an alternative to the warm home discount, which could be implemented immediately if the Government so chose. The Conservatives’ cheap power plan would eliminate certain costs completely from electricity bills, instead of just moving costs around. It would do so for everyone: for those currently in receipt of the warm home discount and for those who are not, including those who are marginally above the threshold for the warm home discount and are therefore effectively paying more to support others while struggling to support their families or to pay their bills.

The Government came to power promising to cut energy bills by £300, but without a plan to do so. Today, bills are £73 higher than when Labour took office. In comparison, our cheap power plan would cut electricity bills by 20%, saving all households £200 and cutting electricity bills for businesses, without costing households a penny and without—

[The Chair]

Order. Can we come back to the motion before the Committee?

[Harriet Cross]

We can. This is an alternative to the warm home discount, Sir Desmond.

[The Chair]

Let’s talk about the warm home discount.

[Harriet Cross]

The warm home discount, as I say, moves bill payers’ and taxpayers’ money around; it does not reduce the cost, and it does not take money off bills. People are still paying it, but in a different place. People who can just manage are paying it for those who just cannot. It is an unfair mechanism that penalises those who are just above the margin. Although we recognise the importance of making sure that bills are affordable for everybody, that does not mean that those who can just pay should be penalised. That is why we brought in, and we support, the concept of a warm home discount to help make bills affordable, but there must be an alternative via the cheap power plan to ensure that we can help everyone.

I would be grateful if the Minister answered a few questions. Why have the regulations only been put before us today, when the 31 March 2026 deadline has already passed? The Minister mentioned that the measure will cost £92 million. I believe that that is for the next five years.

[Martin McCluskey]

It is per year.

[Harriet Cross]

It is per year. Does that fall completely on the Scottish Government’s budget, or is it shared between the Governments of Westminster and Holyrood? Given that there is an alternative, via the cheap power plan, that would eliminate the costs rather than moving them, and given that the Government have already addressed some of the costs by removing some of the carbon taxes, why would they not go further and implement more of the Conservatives’ cheap power plan?

--- Later in debate ---

[Martin McCluskey]

I thank hon. Members for their speeches. The hon. Member for Gordon and Buchan asked why there had been a delay in laying the draft regulations. The delay was because of continued negotiations between the UK Government and the Scottish Government. At the outset of the discussions with the Scottish Government, there was ambiguity as to what was devolved and what was reserved; that took us some time to agree with the Scottish Government. Scottish Government Ministers then took some time to determine eligibility for the scheme. The reason that we are putting the draft regulations before the Committee today, rather than having done it before the 2022 regulations came to an end, is that we had to wait for the Scottish Government to decide what the criteria for each of the groups would be.

The hon. Member asked about the cost of £92 million per year. That £92 million is set by the Secretary of State within the part of the regulations that is reserved. That is proportionate to the overall UK figure; £92 million is the amount that goes to the Scottish Government. That is where the reserve power is. There is a UK-wide figure, so UK—in this case, GB—taxpayers will bear the responsibility for the cost of those bills across the country.

The hon. Member also spoke about the Tory cheap power plan, which I have read with interest. I have to say that it is quite thin on detail, and I would argue that some of the suggestions in it would probably bring about further instability within our electricity market.

Let me talk about some things that the Government have done in just the past few months. Our £150 warm home discount is offering targeted support to the most vulnerable people. There is also universal support, in the form of the 7% price cap reduction in the current price cap period. Last week, we announced the British industrial competitiveness scheme, which provides support for industry. The Secretary of State for Energy Security and Net Zero also announced last week how we will go further and faster in our mission for clean power by 2030.

It is important to emphasise to hon. Members that the way to get our energy bills down permanently is through home-grown clean power that we control and can control the price of. It is not through continued exposure to volatile fossil fuels like oil and gas that at this very moment are leaving us exposed to volatile wholesale costs, which are still the largest part of each of our energy bills.

I can guarantee the hon. Member for Inverness, Skye and West Ross-shire that I have noticed no one in Speedos in Inverclyde. Even on the sunny banks of Gourock this weekend, there were certainly no Speedos on display, despite the warm weather. The hon. Member made an important point about the impact of rising energy bills on rural homes and businesses; he will know that provision has already been put in place for additional support for those who use heating oil, with over £50 million delivered by the UK Government and now a £10 million scheme in Scotland. We have always said that we will keep that under review. To my knowledge, the Scottish scheme is nowhere near exhausted, but we will keep under review the amount that might be required for additional support.

I also point the hon. Member towards the decisions in the Budget to remove costs from energy bills, which disproportionately reduce electricity users’ bills over those who have dual fuel, because most of the discount came from the electricity part of the bill. That will have made a difference. However, we also need to close the spark gap between electricity and gas. The action that the Secretary of State took last week, alongside the Chancellor, to move electricity generation to longer-term contracts for difference will help to close that gap. However, I agree with the hon. Member that there is still room for further measures in future.

As I mentioned, fuel poverty is a devolved matter in Scotland. The draft regulations, which we are making on behalf of the Scottish Government, will help more households in Scotland who are facing financial challenges or fuel poverty to receive support each winter, the time of year when support is most needed. This Government are ensuring that lower-income households benefit the most from energy bill reductions.

I should also address the point that the hon. Member for Gordon and Buchan made about redistribution. This is where we will probably find an ideological difference in our approach to support for the most vulnerable. The Labour party supports redistribution. We support the fact that those with the broadest shoulders are being asked to pay a little more on their energy bills for support—

[Harriet Cross]

Does the Minister think it fair that someone who is £1 or £10 over the limit will have to pay for someone who is £1 or £10 under the limit? This redistribution is penalising people near the limit to such an extent that those who are just outside it will end up worse off than those who are just inside.

[Martin McCluskey]

That is why we need a balance of universal and targeted support. Currently, through the price cap, those on dual fuel bills will be receiving an average reduction of 7%. Alongside that, we have targeted support for the most vulnerable people in society. I think that that provides us with the right balance to ensure that widespread support is targeted at those who most need it.

We acted in last year’s Budget by taking money off energy bills to tackle the cost of living. These significant changes to how energy is priced have ensured that energy bills have fallen by 7% for an average dual fuel customer paying by direct debit. Once again, I commend the draft regulations to the Committee.

Question put and agreed to.