More households could be given £150 off energy bills next winter (Image: Getty)
As many as 2.7 million more UK households are set to be given £150 off their energy bills after the government announced the expansion of the Warm Home Discount scheme in response to another jump in gas and electricity prices.
This morning, the government revealed it plans to make more homes eligible for the money off, which is targeted at low income households such as those on and those with low earnings.
The move comes after announced a 6.4% average increase for from April, or £111 on average for a household with typical use, up from £1,738 to £1,849.
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Following that piece of bad news, the energy secretary revealed that the government is planning to widen the Warm Home Discount to 2.7m more homes from winter 2025.
Right now, households get the £150 if they are on the Guarantee Credit element of Pension Credit or can show that they have a low income paired with high energy bills.
Energy Secretary Ed Miliband said: “This Government is determined to do everything we can to protect people from the grip of fossil fuel markets. Expanding the Warm Home Discount can help protect millions of families from rising energy bills, offering support to consumers across the country.
“Alongside this, the way to deliver energy security and bring down bills for good is to deliver our mission to make Britain a clean energy superpower with homegrown clean power that we in Britain control.”
According to money expert , the government will increase eligibility for the £150 by removing the ‘high energy cost’ criteria for those on low incomes. It means those on Universal Credit may get the £150 Warm Home Discount as standard, rather than having to show that they have high energy usage.
Martin said on X today: “The government proposes to expand the £150 Warm Home Discount to 2.7m more low income households [for] winter 2025/26 (though a chunk of that’ll be eaten up by the cap rise where the 6.4% rise is equivalent to £111 a year on an annualised bill).
“It’ll be done by getting rid of the ‘high energy cost’ criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes).
“That’s good as it’s a terribly implemented system which left many, literally, unfairly out in the cold. There’s also a proposal on old energy debt support, which sound good, but needs reading so I’ll leave that for now.”
Right now, the discount is automatic unless you are on an old pre-payment or credit style meter.
The government sets out via gov.uk: “The Warm Home Discount Scheme is a one-off £150 discount off your electricity bill.
“If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.
“You’ll usually get the discount automatically if you’re eligible. You only need to apply if you’re on a low income in Scotland – contact your energy supplier to apply.
“You may be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity and you’re eligible. Contact your supplier to find out.”