Millions more people to get £150 Warm Home Discount after rule change

Around two million more people will receive an automatic discount on their energy bills this winter as Labour confirms the expansion of an annual scheme.

Around six million people in total will now receive the Warm Home Discount, taking £150 directly off their energy bills.

This includes 900,000 families with children and 1.8 million households in fuel poverty, the Department for Energy Security and Net Zero (DESNZ) said.

The government’s Warm Home Discount scheme was introduced in 2011 and delivers a £150 cut to domestic energy bills for qualifying recipients. The one-off discount is applied automatically to an energy bill between October and March.

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To be eligible for the payment in England and Wales, the bill payer must either receive the guarantee credit element of pension credit or be on a low income.

Before the announcement, those in the latter category were also required to have a home with “high energy costs”, as assessed by DESNZ. This critera has now been removed, unlocking the discount for millions more.

The payment does not need to be applied for, as energy providers are obligated to pass on the discount to their eligible customers automatically.

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.”

The positive news for households comes before energy regulator Ofgem drops its energy price cap for July to September by 7 per cent. The average annual bill will decrease from £1,849 to £1,720.

In May, ministers decided to partially reverse changes made to the Winter Fuel Payment for pensioners last year. Separate to the Warm Home Discount, this payment is made to eligible pensioners to help towards energy bills.

In previous years, it was paid to all pensioners, but restricted to just the very poorest in 2024. It will now be paid to all pensioners below a taxable income threshold of £35,000 following the latest changes.