Threads / Warm Home Discount Scheme / Warm Home Discount (WHD): cost recovery
Consultation Outcome Published 2 Apr 2026 Department for Energy Security and Net Zero ↗ View on GOV.UK

Warm Home Discount (WHD): cost recovery

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

Opened 8 Dec 2025
Closed 6 Jan 2026
▤ Verbatim text from source document

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.