In a consultation on the future of the scheme, Decc stated it is considering placing a cap on the payments that suppliers can make to aid consumers who are struggling to pay their bills.
Decc said this move would “encourage more spending on other initiatives” within the Industry Incentives element of the scheme, which accounts for £30 million of spending annually.
No specific amount has been proposed, but the government has asked for suggestions as to what the cap should be.
The proposal comes after spending on debt assistance under the WHD increased from an average of £677 per award in the first year of the scheme (58 per cent of the Industry Incentives spend), to £692 in the second year (70 per cent of the Industry Incentive spend).
The consultation aims to keep much of the WHD the same for the proposed extension for the winter of 2015/16, with the rebate being kept at £140 per consumer, and a spending target of £320 million.
Decc also asked whether more low income working families should receive help, and if the payment introduced barriers to switching and how this could be overcome.
The WHD came into operation on 1 April 2011 and required domestic energy suppliers to provide approximately £1.13 billion of direct and indirect support arrangements to fuel poor customers over an initial four year period.
The funding comes from the participating energy suppliers which they pass on to all consumers through their energy bills.
The consultation closes on 13 November 2014 and Decc will set out its final policy by the end of the year, with the changes set to be completed before April 2015.