The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)

My Lords, these regulations were laid before the House on 19 June 2025. Before I proceed, I draw the Committee’s attention to a correction slip that was issued on 4 July in relation to the draft instrument. It corrected a typographical error on page three of the draft regulations that are the subject of this debate. The change was from Her Majesty’s Treasury to His Majesty’s Treasury. Clearly, this does not affect the substance or intent of the legislation. In February 2025 we consulted on expanding the warm home discount scheme, which provides low-income and vulnerable households with a £150 rebate off their energy bills. Today, we are considering the regulations that will allow us to implement those changes and bring this much-needed relief to around 2.7 million additional households. Since we took office, this Government have been committed to alleviating fuel poverty. Our review of the 2021 fuel poverty strategy made clear that progress has stalled and that we need a new plan to speed up progress on tackling fuel poverty. There are two principal ways of doing this. The first is by improving household energy performance and the second by expanding direct bill support to make energy more affordable. Starting with the first, at the spending review in June, the Chancellor confirmed £13.2 billion for our warm home plan that will transform the housing stock and improve energy efficiency across the country, ensuring that less money is wasted on leaking, ageing homes that are expensive to heat. However, while we press on with that vital work, we recognise that many households remain at risk of fuel poverty and cannot wait until later in this Parliament to feel the benefits. That is why we are also expanding the warm home discount, providing vital support to those who need it most. This support will be available immediately, coming into effect this winter and, importantly, consumers do not need to take any action to receive it. Since 2011, the warm home discount has helped around 3 million low-income and vulnerable households every year by reducing their energy bills when it is most needed. Under the current scheme, around 1 million low-income pensioners in receipt of pension credit guarantee credit receive the £150 warm home discount as an automatic rebate on their energy bills, and more than 2 million low-income and vulnerable households also receive rebates. The statutory instrument before us seeks to amend the Warm Home Discount (England and Wales) Regulations 2022 to allow changes to the eligibility criteria for this coming winter so that more households can receive rebates. It will also extend the time period in which rebate notices can be issued to suppliers, so that as many as possible can be issued before the current regulations expire on 31 March 2026. The SI also amends the Warm Home Discount (Scotland) Regulations 2022 to increase suppliers’ non-core spending obligation by an amount considered to be commensurate to the expected increase in England and Wales. This SI is a result of our consultation in February, in which we proposed to remove the high cost to heat threshold that we believed was unfairly excluding some vulnerable households from the scheme. This threshold often meant that families in almost identical circumstances were treated differently, with some receiving the rebate while others missed out. The current system also excludes many households in smaller properties because their home is not classified as high cost to heat, meaning that our support has not been reaching some of those who need it the most. Removing the high cost to heat threshold will make all energy bill payers who receive a qualifying means-tested benefit eligible for the warm home discount. By bringing around 2.7 million additional households into the scheme, it pushes the total number of households that will receive the discount in winter 2025-26 up to around 6 million, which is one in five households in the UK. We have a statutory duty to tackle fuel poverty. It is our duty as a Government to break down the barriers that prevent some of the most vulnerable families in the country receiving the support they need. The proposed regulations will help us to achieve this. I beg to move.