Energy bill discounts of £150 will be extended to an additional 2.7 million households to assist with fuel costs during the winter season. This brings the total number of households eligible for the Warm Home Discount to just over 6 million, including 900,000 families with children, as stated by the Department for Energy Security and Net Zero (DESNZ).
The modifications ensure that every bill payer receiving means-tested benefits will now qualify, eliminating the high-cost-to-heat threshold specified in the current regulations. This decision follows a government consultation aimed at broadening the one-off payment to include more individuals facing fuel poverty.
Prime Minister Keir Starmer commented, «I am aware that many families are still grappling with the burden of living expenses and the anxiety of being unable to afford their upcoming bills. Ensuring security and peace of mind for the working population is not just a professional goal for me as the prime minister but also a fundamental aspect of the Plan for Change.»
«I firmly believe that, similar to the successful implementation of free school meals, breakfast clubs, and childcare support, the extension of this £150 energy bill support to millions more families will have a tangible impact,» he added.
The move drew criticism from the Conservatives, who argued that the announcement would only result in reduced bills for a quarter of households. Andrew Bowie, the acting shadow energy secretary, voiced concerns over Labour’s green energy initiative, suggesting that it could lead to increased bills for the majority of individuals.
«Kemi Badenoch and I have made it clear that achieving net zero by 2050 is unattainable without driving Britain into bankruptcy and adversely affecting hard-working families,» he emphasized.
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According to Ofgem, typical annual energy bills are projected to decrease by £129 starting in July. However, bills under the July to September 2025 price cap are still expected to be 42% higher than in the winter of 2021/22, as outlined in a House of Commons research briefing.
The Warm Home Discount scheme was established by the coalition government in 2011 to assist individuals on low incomes with their energy expenses. Adam Scorer, the chief executive of National Energy Action, described today’s announcement as «extremely positive news» but noted that it lacks durability.
«The rebate has only seen a marginal increase of £10 at a time when energy bills have surged by £500 annually, and there is no clear plan for the program beyond the end of March next year,» he remarked.
«While this announcement is beneficial for the upcoming winter, the government must devise a long-term strategy to provide more substantial assistance to those unable to afford a warm and healthy home in the future,» he concluded.