Millions of households could be in line for more help with energy bills under a new call to increase the Warm Home Discount as prices continue to rise.
The Warm Home Discount should be uprated to match rising energy prices and extended to more vulnerable households, according to the End Fuel Poverty Coalition.
The coalition has put forward a seven-point winter rescue plan for the Chancellor ahead of the Budget, warning that households are heading into winter with energy costs under renewed pressure.
It wants the Warm Home Discount across Great Britain to increase in line with rising energy prices.
The £150 rebate currently provides a one-off reduction on eligible households' electricity bills, but the coalition says its value has fallen significantly compared with when the scheme was introduced.
The coalition says the discount was worth around 14% of a typical energy bill when it was introduced, but is now worth around 8%.
It is calling for the rebate to be increased so that it keeps pace with energy costs.
More people should be eligible for help
The coalition also wants the scheme extended to vulnerable households who do not receive means-tested benefits and says it should be funded through general taxation rather than through other customers' energy bills.
The call comes as households prepare for the October Energy Price Cap increase and amid warnings of further rises in January.
Wholesale gas prices are at their highest level in four years, according to the coalition, while analysis suggests the gas unit rate paid by consumers could reach 12p per kWh from January 2027.
The coalition says this could represent a doubling of the unit rate over 12 months.
Households using heating oil, LPG or coal are also facing higher costs as tensions in the Middle East put pressure on energy markets.
The End Fuel Poverty Coalition says many households are still dealing with energy debts built up during the cost-of-living crisis.
Its winter rescue plan therefore includes a series of measures aimed at reducing the pressure on households struggling with bills.
At the centre of the proposals is a call for energy crisis arrears to be written off for households receiving means-tested benefits, with the coalition suggesting this could be funded using what Citizens Advice has described as a potential £7 billion windfall for energy network companies.
“Why are bills UP £300 when they were meant to be DOWN £300?” Martin puts your first question to Energy Secretary @Miatsf
For more inc on standing charges, green policy, regional pricing, and Jan’s predicted 24% price hike. Watch the full energy bills special on… pic.twitter.com/0tVWHCrprj— Martin Lewis (@MartinSLewis) September 17, 2026
Calls for bigger Warm Home Discount
The coalition's Warm Home Discount proposal is one of seven measures it wants the Chancellor to consider.
It wants the payment increased in line with rising energy prices so that its value does not continue to shrink relative to household bills.
It is also calling for vulnerable households outside the means-tested benefits system to qualify.
The coalition says the current arrangement means the cost of the discount is effectively spread across other energy customers' bills and wants future funding to come from general taxation instead.
The proposals are calls from the End Fuel Poverty Coalition and are not Government policy.
The End Fuel Poverty Coalition is calling for the Warm Home Discount to be increased in line with rising energy prices and extended to more vulnerable households. (Image: Getty Images/iStockphoto)
Jan Shortt, General Secretary of the National Pensioners Convention, said: "The continued increases in energy prices affects everyone. But older people, disabled people and those on low income face falling into debt. The Coalition asks are not overly stated and it is time that the huge profits made for suppliers is part of the deal for helping customers."
Simon Francis, coordinator of the End Fuel Poverty Coalition, added: "Two hundred days on from the start of the US-Israeli conflict with Iran and it is households in Britain who are being handed the bill.
"This is the entirely predictable result of leaving households exposed to volatile fossil fuel markets and an energy system which has generated over £6bn in UK profits for just a handful of firms and a record level of energy debt for consumers.
"The recommendations given to the Chancellor are the bare minimum of what needs to be done to make energy more affordable for those most at risk of living in unhealthy homes. With gas prices again on a dangerous upward trajectory, emergency financial support may also be needed to keep people safe this winter.
"What would make a difference now is a concerted national effort to get off gas and heating oil. That means breaking the link between electricity prices and the gas market, speeding up roll out of the Warm Homes Plan and putting support in place before this winter arrives."
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Other measures being called for
The coalition's seven-point plan also includes:
- Writing off energy crisis arrears for households on means-tested benefits.
- Increasing the Warm Home Discount in line with energy prices.
- Extending the Warm Home Discount to vulnerable households outside the means-tested benefits system.
- Replacing Cold Weather Payments with an Extreme Weather Payment in England, Wales and Northern Ireland.
- Creating a referral system allowing social workers, health professionals and debt advisers to connect households with bill support or home upgrades.
- Establishing long-term funding for a social tariff framework.
- Confirming that the temporary VAT reduction on domestic electricity will not end on March 31, 2027.
- Attaching a guarantee to publicly funded home upgrades.
The coalition's proposals come as households face another period of uncertainty over energy costs.
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