Millions of households are set to benefit from the £150 Warm Home Discount annually throughout the decade, as part of efforts to address the cost-of-living challenges. Energy Secretary Ed Miliband has confirmed the extension of this support program in light of the escalating wholesale energy prices. Eligible households will continue to receive the £150 rebate on their energy bills each winter until 2030/31.
Last year, the government expanded the Warm Home Discount, including an additional 2.7 million families in the scheme, bringing the total number of eligible households to approximately six million. Qualifying households in England and Wales receiving means-tested benefits will automatically receive the discount if their energy supplier serves more than 1,000 customers.
In a separate development, the average household bill is expected to decrease by £150 starting in April due to the elimination of the Energy Company Obligation (Eco) scheme. Miliband emphasized the government’s commitment to addressing the affordability crisis as a top priority.
The average annual energy bill for households in England, Wales, and Scotland on a standard variable tariff has reached £1,758 this winter. Energy UK’s deputy director of customer policy, Ned Hammond, welcomed the extension of the Warm Home Discount, highlighting the ongoing vital support it offers to millions of customers.
Matt Copeland, head of policy and public affairs at National Energy Action, praised the five-year extension of the Warm Home Discount, emphasizing the importance of continued support for low-income households and energy advice programs. The industry looks forward to collaborating with the government to enhance the scheme, ensuring targeted and effective assistance for those most in need.