Warm Home Discount extended to 2.7 million more households

The Government has announced that the Warm Home Discount will be expanded, meaning 6 million households will receive £150 off their energy bills this winter.

The Government says that this major expansion of support for working families is the latest in a raft of cost of living support made possible because the government has stabilised the economy, fixed the foundations and repaired the public finances – deliberate choices which are helping provide security and more money in the pockets of working families through the Plan for Change.

Since last summer, interest rates have been cut four times, lowering mortgage costs, free school meals have been rolled out for over half a million more children so that kids can focus on learning rather than hungry bellies, free breakfast clubs are being expanded to every child in the country, school uniform costs have been cut, the 30 hours of free childcare scheme has been extended to more working parents.

Prime Minister Keir Starmer said “I know families are still struggling with the cost of living, and I know the fear that comes with not being able to afford your next bill.

“Providing security and peace of mind for working people is deeply personal to me as Prime Minister and foundational for the Plan for Change. I have no doubt that, like rolling out free school meals, breakfast clubs and childcare support, extending this £150 energy bills support to millions more families will make a real difference.”

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, 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.”

Andrew Sissons, Deputy Director of Sustainable Future at Nesta, said “Extra help for those households most in need is an important part of the energy bill system, and this change will go some way to help make energy bills fairer and more affordable for many this winter.”

David Buttress, CEO of OVO, said “This announcement is welcome relief for millions of families. Expanding the Warm Home Discount is a step in the right direction – targeting help where it’s needed most, directly into people’s pockets.”

Dhara Vyas, Chief Executive, Energy UK said “Extending the Warm Home Discount so that millions more households get help with their energy bills this winter is welcome news.

“Energy bills are still hundreds of pounds higher than at the start of 2022 and with customer debt at record levels, we hope to see more measures to help those most in need – by pressing ahead with Ofgem’s debt relief scheme, accelerating progress on a new improved targeted support scheme and looking at other ways to cut bills right across the board, such as moving the policy costs off electricity that currently make it artificially expensive.”

Chris O’Shea, CEO, Centrica said “Today’s announcement will bring real warmth when it matters most. Expanding the Warm Home Discount means millions more families will see £150 off their energy bills this winter — and that’s welcome news.

“I’m delighted that the Secretary of State has delivered this benefit for the millions of families who need help most. At Centrica, we’re proud to be doing our part too, helping customers through both the British Gas Energy Trust and the voluntary £140 million customer support package for British Gas customers.”

Chris Norbury, CEO of E.ON UK, 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.

“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.”

Dame Clare Moriarty, Chief Executive at Citizens Advice, said “The expansion of the Warm Home Discount is good news for struggling households who haven’t been eligible previously. But the £150 amount has not kept pace with rising bills and will struggle to touch the sides for families paying off a mountain of debt on top of soaring monthly costs.

“Bills are 52% higher than before the energy crisis, prices continue to be volatile, and one in ten households are in energy debt – with the amount owed growing each day.

“We need the government to look into longer term solutions that provide more help to those who need it most, such as families with children and disabled people. There also needs to be more certainty about the support on offer to people in debt, including urgent progress from Ofgem on the debt relief scheme.”