Warm Home Discount

Nusrat Ghani Excerpts

Thursday 19th June 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)]

With permission, I wish to make a statement on the action we are taking to cut energy bills for working families.

Three years on from the Russian invasion of Ukraine which sent prices soaring, people up and down the country are still feeling the impacts. Everywhere I go in this job and from every person I speak to, I hear how the wages that used to support families are being swallowed up by sky-high energy bills month after month after month. The truth is that for as long as we remain dependent on gas and volatile global markets, British people will continue to pay the price and we will continue to be held back as a country. That is why we are finally ending our exposure and our vulnerability by sprinting to clean, affordable energy that is controlled by us.

We know that in the meantime, we must do everything we can to support families who are under huge amounts of pressure with their energy bills. Today, we are setting out how we will help millions more households with their bills this winter by expanding the warm home discount. Previously, around 3 million people received the £150 rebate off their energy bills, but millions of people living in homes not classified as “hard to heat” were excluded as a result of criteria introduced by the previous Government in 2022. We believe those criteria were unnecessary and unreliable. We believe that it cannot be fair to have two families in almost exactly the same circumstances, with one receiving help and one not. That has been raised repeatedly by consumers and their advocates since the changes were made in 2022, and I absolutely understand their concerns. That is why we are abolishing this restriction.

This winter, every single household where the bill payer receives a means-tested benefit will be eligible for the warm home discount, which means a further 2.7 million low-income households will get that vital support. In total, more than 6 million households—one in five families in Britain—will get the help they need this winter. This expansion will help us meet our goal of tackling fuel poverty, which is critical to the work of my Department. It will increase the number of fuel-poor households that receive support, with coverage improving from 30% under the current scheme to around 45%. In total, 1.6 million fuel-poor households will receive support. I have met people on the frontline of the energy bills crisis up and down the country, so I know for a fact that there are families out there right now breathing a sigh of relief because this measure will ease the huge amount of pressure they are under with the cost of living.

One issue that is often raised with me is that families can miss out on the warm home discount because the person who receives the means-tested benefit is not named on the energy bill. To be eligible, the means-tested benefit recipient, their partner or their legal appointee needs to be named on the energy bill. I encourage all families who receive a means-tested benefit to check that and, if necessary, to contact their supplier. People need to ensure that the benefit recipient, their partner or their appointee is named on the bill before the warm home discount qualifying date, which is 24 August.

At the same time, we are going further to put the energy market back in the service of working people, taking steps to restore confidence and faith in the energy market, which has been shaken. As it stands, too many complaints against energy companies go unresolved or take too long to fix—whether it is suppliers not responding quickly enough or failing to adjust direct debits when families use less energy—which leads to a situation where consumers often do not access the compensation they are entitled to due to an overly complex complaints system.

This Government are absolutely committed to standing up for consumers who have had a bad experience of the energy system, and we are working hard to ensure that the system works in the interests of consumers. We have already made real strides in improving conditions for customers. Following the Secretary of State’s intervention and months of Government work with the sector, Ofgem announced £18.6 million of compensation for victims of forced prepayment meters in May, and we will continue to go further.

This is a Government willing to use every tool in our arsenal to fight for working people. By moving at speed to deliver clean power, and with the spending review setting out the biggest investment in the domestic clean energy industry in history, we will take back control of our energy system and do the job of protecting consumers. That is why we have wasted absolutely no time in driving forward our clean energy mission in our first year, ending the onshore wind ban, consenting more than 4 GW of renewable energy, launching Great British Energy, funding a new golden era for nuclear, kick-starting carbon capture and hydrogen industries, and investing £1 billion already to upgrade up to 300,000 homes, with £13.2 billion committed in the spending review to upgrade millions more.

This is how we will rebuild our energy network and protect families across the country: by supporting more people who need our help this winter; by restoring confidence in a reformed energy market; and by bringing bills down for good with secure, reliable, clean energy. We will ensure that every family in this country has the security of a home they can afford to heat now and in the future. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

--- Later in debate ---

[Miatta Fahnbulleh]

As always, my hon. Friend puts it perfectly. I will pick up his point on data sharing, which is critical. My Department and the Department for Work and Pensions have been working over the past few months on the sharing of means-tested benefit data so that this will be automatic; come this winter, all eligible consumers will receive a letter informing them that they will be getting the warm home discount. It will be transferred on to energy bills as a credit—a direct payment for consumers—because we have done the groundwork to put that in place.

On my hon. Friend’s critical second point, the relative cost of gas and electricity is incredibly high, and we know that is a problem for both households and businesses, particularly as we try to make that transition to clean energy. We are continuing to do that work. I am very clear that we need to deal with that question in order, for example, for our plans to upgrade homes to have the bite and traction they need, and we are absolutely committed to doing so.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Claire Young (Thornbury and Yate) (LD)]

We welcome investment in warm homes following a winter in which millions of households were living in fuel poverty. The crisis was exacerbated by the Government’s cut to winter fuel payments— and we welcome the U-turn on that, too. The former Conservative Government’s stop-starts on home insulation policies left thousands of vulnerable people in damp, cold and unsafe homes, with lower energy-efficiency standards and higher bills during an energy crisis.

Given that homes in this country are among the oldest and least energy-efficient in Europe, will the Government commit to an ambitious 10-year plan for home insulation, for which the Liberal Democrats have long called? Will they ensure that households on lower incomes will be eligible for free insulation as part of that plan? And, following the Government accepting the campaign of my hon. Friend the Member for Cheltenham (Max Wilkinson) for solar panels to be mandated for all new homes, will they now look to introduce a full zero carbon standard for all new homes and solar for car parks, as put forward by the Liberal Democrats in amendments to the Planning and Infra- structure Bill?

--- Later in debate ---

[Miatta Fahnbulleh]

I cannot believe it was 30 years ago that my hon. Friend was learning about green energy. We have been sprinting to deliver clean power. When we came into government we set a mission to do it by 2030. There were naysayers, and there continues to be naysayers, but we were not deterred by that. So whether it is removing the ban on onshore wind, whether it is record investment in nuclear, or whether it is a record renewables auction, we are very clear that we are putting in the investment—we are putting in the hard yards, the hard graft—to deliver clean power. Why are we doing that? Not because of ideology, but because we recognise that we inherited an energy system that was not working on behalf of consumers. We recognise that people were under huge pressure—a status quo that we were not willing to accept. We will deliver clean power, so that we can bear down on bills and ensure that we drive down energy bills for good.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

That is the end of the statement, so I will allow the Front Benches a few moments to shuffle over as we continue the business for the rest of the afternoon.