More Brits are to get a discount on their energy bill (Image: Getty)
Millions of families will receive the £150 Warm Home Discount every winter for the rest of the decade as the scheme is extended, the Government has announced. The wider Warm Home Discount will see eligible households provided with a £150 rebate on their energy bills every winter until 2030/1.
All households in England and Wales receiving a qualifying means-tested benefit should automatically receive the discount, provided their supplier has more than 1,000 customers. Those who have not received a letter or the discount but think they are eligible should also call 0800 030 9322 by February 27, the Department for Energy Security and Net Zero (DESNZ) said.
Separately, £150 is to be cut from the average household bill from April by scrapping the Energy Company Obligation (Eco) scheme. It comes after the average energy bill for a household in England, Wales and Scotland, on a standard variable tariff, hit £1,758 a year this winter. Sir Keir Starmer has made lowering the cost of living the Government’s top priority going forward in 2026.
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Regulator Ofgem said the latest 0.2% increase to the cap, which took effect on January 1, was being driven by the funding of nuclear power projects and discounts to some households’ winter bills.
The Warm Home Discount was expanded last year, adding 2.7million families to the scheme and bringing the total number of eligible households to around six million.
Eligibility
In England and Wales, you qualify if you either:
In Scotland, you qualify if you either:
Energy Secretary Ed Miliband said: “Tackling the affordability crisis is the Government’s number one priority.
“That is why we are today confirming to millions of eligible families across the country that they will receive the £150 Warm Home Discount every winter for the rest of the decade.
“That will give families much-needed peace of mind that they will continue to receive vital support, as we take action to bring down bills for good.”
Ned Hammond, deputy director of customer policy at Energy UK – which represents firms, said: “It’s very good news to see confirmation that the Warm Home Discount will be in place until the end of the decade which, particularly with the recent expansion, will provide continuing vital support with energy bills to millions of customers.
Ed Miliband says lowering the cost of living in Labour’s top priority (Image: Getty)
“We now look forward to working with the Government on further changes to the scheme, including better targeting and tiered support, to ensure that is both directed to those most in need and provides the right level of assistance to really make a difference for customers struggling to afford bills.”
Matt Copeland, head of policy and public affairs at National Energy Action, said: “The five-year continuation of the Warm Home Discount is welcome news for low-income households and provides support that extends beyond this parliament.
“It is also essential that support is continuing for energy advice and for measures that reach people who are not within the benefits system. Without this, many households who cannot be identified through government data matching will remain without the help they need.”
The latest move comes as the Government said it remains committed to reforming the welfare system amid reports Sir Keir Starmer has intervened to stop fresh attempts to reduce the benefits bill.
The Department for Work and Pensions has been trying to get new welfare reform legislation into the next King’s Speech, but has so far been unsuccessful, The Times reported.