Around six million low-income households will continue to receive £150 off their winter energy bills after the Government confirmed the Warm Home Discount will run for a further five years.
The scheme, first introduced in 2011, is now set to remain in place until the winter of 2030/31. The decision follows a consultation on how best to continue the support, particularly as households continue to face pressure from high living costs driven largely by rising energy prices.
Eligibility for the Warm Home Discount was expanded last year, bringing an additional 2.7m families into the scheme. Ministers say the extension will provide longer-term certainty for households most at risk of fuel poverty.
Energy suppliers fund and apply the £150 discount directly to customers’ bills. For most eligible households, the rebate is applied automatically, as long as their supplier has more than 1,000 customers. This means that, in most cases, there is no need to apply.
The Government also confirmed changes for Scotland. From next winter, around 345,000 low-income Scottish households will automatically receive the discount, aligning the system with England and Wales. Previously, eligible households in Scotland had to apply to receive the support.
A small number of households may still need to provide additional information to ensure they receive the discount for the current winter. Anyone who has received a letter asking them to contact the Warm Home Discount helpline must do so by 27 February.
While charities broadly welcomed the extension, some warned that £150 does not go far enough to protect households struggling with energy costs.
The Warm Home Discount is separate from the average £150 annual saving on energy bills expected from April, announced by Chancellor Rachel Reeves in her November Budget.
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