A discussion paper by Jenny Boyce, AgilityEco's Director of Community Schemes
The Warm Home Discount (WHD) scheme is a vital part of the UK’s approach to tackling fuel poverty. The scheme provides direct support to over 3 million households each year through rebates, and an additional £76 million in support through the Industry Initiative element of the scheme.
We wholly support the WHD’s policy objectives to protect vulnerable households from the impacts of fuel poverty. Industry Initiatives have always been the cornerstone of the scheme by providing targeted support for those most in need. The range of interventions they provide, particularly over the longer term, are essential for delivering meaningful change and driving innovation.
Our LEAP (Local Energy Advice Partnership) has proudly provided over 150,000 households with free energy advice and holistic support over the last decade. Last year alone we helped vulnerable households save over £70 million in lifetime bill savings through advice, measures, energy efficient appliances and financial support.
As the Government consults on extending the scheme to 2030/31 and explores a new approach to estimating non-core targets, this paper offers a contribution to ongoing policy discussions on how the WHD can deliver the greatest impact for vulnerable households.
Industry Initiatives: why we need to go further than the rebate
With over a decade of delivery experience in the industry, we have supported hundreds of thousands of households through LEAP , and worked in close partnership with energy suppliers and local authorities to successfully deliver numerous retrofit and energy efficiency programmes.
This paper welcomes the proposals to maintain the current scheme but urges policymakers to go beyond this and increase the size of the Industry Initiatives budget. As energy costs rise and climate goals come into focus, it’s evident that the WHD has an important part to play in this transition.
- Rebates help in the short term, but fundamental interventions such as the provision of energy efficiency and renewable measures, as well as long-term financial support, are indispensable.
- Living in cold, inefficient housing exacerbates existing inequalities. Energy policies like the WHD reach those who are disproportionately at risk, such as the elderly, disabled and those on a low income.
- Building long term partnerships with community-based organisations means suppliers can deliver targeted interventions that reflect local needs and vulnerable household profiles.
While it may cost slightly more to the bill payer to expand Industry Initiatives, the consequence of inaction is far greater. Social and health costs and increased energy debt are far more expensive in the long run.
Expanding coverage should not erode existing support
We also welcome the proposal to expand in Scotland but must ensure that expanding coverage of the rebate scheme doesn’t erode support for the most vulnerable. It’s critical to ensure we don’t reduce support for those most impacted by high energy costs. Industry Initiatives deliver significant energy savings, reducing bills and therefore maximising the efficacy of the rebate.
Industry Initiatives allows energy suppliers and their partners to deliver targeted, lasting interventions, tailored to individuals and communities. This delivery model fosters innovation and efficiency while reducing strain on public services. Through this model, our LEAP scheme offers support such as energy advice, low-cost measures and appliances, income maximisation checks, heating upgrades and financial assistance. These interventions offer a strategic and cost-effective route to reduce fuel poverty, support better public health and contribute to net zero goals.
Long-term Industry Initiatives commitment drives local partnerships
We welcome the certainty a multi-year scheme gives the industry and the communities we serve. Long-term strategic partnerships with established organisations can help maximise the impact of funding. Through LEAP we support over 100 smaller charities and community groups, providing funding and referral routes to support vulnerable households across the country. Without programmes like ours, these smaller charities would miss out on WHD funding.
Industry Initiatives as an enabler
As well as delivering significant value as a standalone programme, Industry Initiatives can act as a bridge connecting other policy objectives, such as renewables, retrofit, social welfare and health services to ensure holistic, equitable and meaningful support. While they already complement other programmes via signposting and training, there is scope to broaden this and deliver truly integrated, life-changing support by accelerating the charge to net zero, filling in the gaps these programmes cannot reach.
Large-scale intervention through energy efficiency and renewable programmes such as ECO, GBIS, Warm Homes: Local Grant and Social Housing Fund is the answer to enduring change and energy resilience. However, these schemes take time to reach all those in need, meaning some households continue to live in inefficient, hard to heat homes. Industry Initiatives help people to live better while waiting for large scale interventions.
The WHD funding can be used to fund parts of retrofit schemes when other grants don’t cover full costs, can’t act quickly or where people in need fall through the gaps in eligibility. While it’s technically possible to fund/co-fund renewables such as heat pumps under the current regulations, the approval process can be cumbersome for all parties. Auto-eligibility between schemes would be a more effective solution and provide a smoother, fairer customer journey.
Conclusion and policy ask
The WHD is a critical component of UK energy and social policy. Its true value lies not only in immediate relief via rebates, but also in the more meaningful support made possible through Industry Initiatives. Strong, well-designed, adequately funded Industry Initiatives are essential for creating warmer, healthier, fairer homes, lowering energy demand and reducing the burden on households, the health service and society.
To ensure the continued success and growth of the scheme, we urge policymakers to protect and expand the Industry Initiative element of the WHD by introducing a multi-year protected budget, set at a minimum of the current level. This would provide certainty, enable strategic investment and ensure Industry Initiatives are not an afterthought, but a central tenet of the overall solution to climate and social justice goals.