Energy bill discounts of £150 will be received by another 2.7 million households – including 570,000 in London – to help with costs this coming winter, it has been announced. The warm home discount will be available to more households as some restrictions on eligibility are being removed and every bill payer on means-tested benefits will qualify.
This brings the number of households eligible for the warm home discount up to just over 6 million, the Department for Energy Security and Net Zero (DESNZ) has confirmed after a consultation. Some 900,000 families with children and 1.8 million homes in fuel poverty across the country will benefit from the payment.
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.
The Conservatives criticised the move, saying energy prices are expected to keep climbing overall. Andrew Bowie, the acting shadow energy secretary, said: “Labour promised to cut everyone’s energy bills by £300 but they have increased by £280 and are forecast to keep going up.
“Energy bills need to come down but this announcement will cut bills for just a quarter of households whilst increasing them for everyone else. Kemi Badenoch and I have been clear that net zero by 2050 is impossible without bankrupting Britain and making hard-working families worse off.”
The expansion of the Warm Home Discount will be offset by new efficiency savings according to the government. For example, Ofgem have confirmed a decrease in the operating cost allowance of the price cap for the average billpayer which will take money off bills.
Ofgem’s plans to reduce the overall stock of consumer debt, which is currently recouped via a levy on all bills, will also produce savings that help to fund the Warm Homes Discount.
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