'Millions more' families to get money off energy bills this winter

The Government says 2.7 million extra households will receive £150 off their energy bills next winter as the Warm Home Discount is expanded.

Millions of households will see their energy bills cut by £150 this winter according to the Government as they announce another major package of support to ease the cost of living for working families through the Plan for Change.

Over six million households will benefit this year – an increase of 2.7 million households, including 900,000 more families with children and a total of 1.8 million households in fuel poverty.

Every billpayer on means-tested benefits will now qualify, removing restrictions that previously excluded many who needed help.

The number of families who will receive the discount for the first time, broken down by region, include:

· North East England: 100,000

· North West England: 280,000

· Yorkshire and the Humber: 210,000

· East Midlands: 160,000

· West Midlands: 270,000

· East of England: 250,000

· London: 570,000

· South East England: 350,000

· South West England: 220,000

· Wales: 110,000

· Scotland: 240,000

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 energy price cap is also falling in July and today’s announcement adds a further £150 in direct support for millions.

The government says it has also protected working people’s payslips from higher taxes, frozen fuel duty and are increasing the minimum wage to give pay rises of up to £1,400 a year to millions of low-income workers.

Everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment this winter, bringing the total to nine million pensioners.

The Prime Minister says the Government's announcement goes even further than cutting energy bills by helping those who racked up debts during the energy crisis of 2022-24.

Backing Ofgem’s proposed debt strategy will cut consumers’ energy bills by reducing the cost of paying for energy debt, alongside other reforms.

The expansion of the Warm Home Discount will be offset by new efficiency savings across the energy system. 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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