In a major move to help households cope with the ongoing cost-of-living crisis, the UK government has announced that millions more people on benefits will receive a £150 discount on their energy bills this winter. This expansion of the Warm Home Discount scheme means that more than six million households will now benefit an increase of 2.7 million from previous years.
Previously, the Warm Home Discount was limited to those deemed to have high energy costs, alongside receiving certain benefits. The updated policy scraps that limitation, making the payment automatically available to all households in England and Wales receiving means-tested benefits. This change is especially significant for low-income families, with around 900,000 households with children and 1.8 million living in fuel poverty now eligible. The £150 credit will be applied directly to electricity or gas bills between October and March, depending on the energy provider. Those with prepayment meters will receive a voucher redeemable at the Post Office.
The policy shift is part of the Labour government’s broader “Plan for Change,” which focuses on easing financial burdens for struggling families. Alongside the expanded energy discount, the plan includes increased access to free school meals, expanded childcare support, and an extension of the Household Support Fund through local councils. The move also comes ahead of a drop in the energy price cap set for July, which is expected to offer further relief for consumers.
Prime Minister Keir Starmer underscored the human impact of the initiative, saying the government understands the stress of facing unaffordable energy bills. “I know the fear that comes with not being able to afford your next bill,” he said, “and this support will make a real difference in providing security and peace of mind.” Energy Secretary Ed Miliband echoed that sentiment, calling the expansion a clear signal that the government is committed to helping working families by putting money back in their pockets.
With colder months just a few months away, the enhanced Warm Home Discount offers timely relief to many households that have faced rising costs and stagnant wages. For millions across the UK, this £150 payment could mean the difference between heating and hardship, reflecting a renewed focus on practical, people-centered policymaking.
