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Millions of UK households are set to receive a £150 boost to their energy bills this winter, following a major Government support package aimed at easing the cost of living for working families. The initiative, part of the Government’s “Plan for Change”, expands the Warm Home Discount scheme and is expected to benefit more than six million households, marking an increase of 2.7 million from last year.
The widened eligibility for the Warm Home Discount means that every billpayer on means-tested benefits will now qualify for the £150 handout. Previously, families only qualified for the scheme if they received the Guarantee Credit element of Pension Credit or were on a low income and had high energy costs. The support is designed to offer more certainty and peace of mind to families as they plan for the winter months. Chris Norbury, CEO of E.ON UK, one of the energy firms that usually participates in the scheme, welcomed the expansion. He said: “We welcome the expansion of the Warm Home Discount, which will help ease pressure on millions of households this winter.
“Targeted support like this is exactly what’s needed to ensure energy is affordable for those who need it most.
“A strong commitment to technologies and solutions that can lower bills today — such as insulation, solar panels, smart tariffs and battery storage — can make a meaningful difference to people’s lives.”
He added: “Alongside the Future Homes Standard and funding for the Warm Homes Plan, this is another positive move towards a fairer, more affordable energy system for everyone.”
The announcement goes beyond immediate bill reductions. It also addresses the debts many consumers accumulated during the energy crisis of 2022-2024. Ofgem’s proposed debt strategy, which the Government supports, aims to cut the cost of paying for energy debt, resulting in further savings for consumers.
The expansion of the Warm Home Discount will be offset by new efficiency savings across the energy system. For example, Ofgem has confirmed a decrease in the operating cost allowance of the price cap for the average billpayer, which will take money off bills.
Ofgem’s plans to reduce the overall stock of consumer debt, which is currently recouped via a levy on all bills, will also produce savings that help to fund the Warm Homes Discount.
Energy Secretary Ed Miliband said: “Millions of families will get vital support with the cost of living this coming winter, demonstrating this Government’s commitment to put money in people’s pockets through our Plan for Change.”
Adam Scorer, chief executive at National Energy Action, said: “It’s hugely positive that across Great Britain, many more low-income households on means-tested benefits will get some direct support to tackle unaffordable bills and record energy debts this winter.
“Vitally, this includes many more low-income working-age households with children, who are living with the daily consequences of not having access to enough energy at home.”
