Every bill payer on means-tested benefits is now eligible for the winter rebate as rules are widened.
Millions more struggling households will receive help with energy bills this winter under a major expansion of the Warm Home Discount scheme. The move extends the £150 rebate to an extra 2.7 million homes, bringing total eligibility to over six million.
The government confirmed that all bill payers on means-tested benefits will now qualify, after removing the previous ‘high-cost-to-heat’ threshold. It marks a significant change in how winter energy assistance is delivered.
Prime Minister Keir Starmer said he understood the fear many feel when facing unaffordable bills. “Providing security and peace of mind for working people is deeply personal to me as prime minister,” he said. “I have no doubt that extending this £150 energy support to millions more families will make a real difference.”
Embed from Getty ImagesThe Department for Energy Security and Net Zero (DESNZ) said around 900,000 families with children would now be included. The new rules follow a government consultation aimed at widening the scheme’s reach amid rising fuel poverty levels.
The Warm Home Discount, first introduced in 2011 by the coalition government, was originally designed to help people on low incomes manage winter heating costs. But until now, eligibility was restricted based on energy usage and home insulation standards—criteria which campaigners said excluded many in need.
Starmer drew parallels between this move and other policies under Labour’s Plan for Change, including free school meals and childcare support. “Like breakfast clubs and wraparound care, this is about giving working families the security they need,” he said.
The government’s announcement comes as average energy bills are set to fall slightly next month. Ofgem says typical yearly costs will drop by £129 from July. However, households will still be paying 42% more than they were during winter 2021–22, according to a House of Commons research briefing.
The decision drew immediate criticism from the Conservatives, who argued the measure did not go far enough. Acting shadow energy secretary Andrew Bowie said, “This will only cut bills for a quarter of households.”
He accused Labour of using energy policy as a political tool, warning that their broader green agenda would eventually drive up costs for the majority. “Kemi Badenoch and I have been clear that net zero by 2050 is impossible without bankrupting Britain and making hard-working families worse off,” Bowie said.
Campaigners, while welcoming the expansion, also voiced concern about the scheme’s long-term viability. Adam Scorer, chief executive of National Energy Action, called it “hugely positive news” but said it lacked staying power.
“The rebate has only increased by a meagre £10 during a period in which energy bills have gone up by £500 a year,” he noted. “There is no clarity on the programme beyond the end of March next year.”
Scorer urged the government to go further: “This announcement is good news for this winter, but we need a long-term strategy to support those who simply cannot afford a warm and healthy home.”
As the colder months approach, ministers will face increasing pressure to reassure the public that energy help won’t disappear after March. For now, though, the widened Warm Home Discount is set to offer short-term relief to millions bracing for another expensive winter.
BBC
The government is expanding the Warm Home Discount scheme, meaning 2.7 million more households will receive £150 off their energy bills this winter. The rule change removes restrictions based on property type, size, or energy score, making all means-tested benefit recipients automatically eligible. Almost one million families with children will benefit. While charities welcomed the move, critics argue it still excludes vulnerable people on non-means-tested benefits. Simon Francis from the End Fuel Poverty Coalition said the £150 discount is insufficient as energy bills remain significantly higher than in 2020. Energy companies fund the scheme, and costs may be passed to all customers via a small increase in standing charges. The government claims any increase will be offset by efficiency savings. The change follows a U-turn restoring the Winter Fuel Payment to most pensioners. Energy UK’s chief executive, Dhara Vyas, backed the move and called for better targeted support. Chancellor Rachel Reeves has also pledged £13.2bn for energy-efficiency improvements under the government’s Warm Homes Plan.
THE PAPER
Energy Secretary Ed Miliband has expanded the Warm Home Discount, giving 6.1 million UK households a £150 winter energy bill reduction—up from 3.4 million last year. Anyone on means-tested benefits will now qualify, with the cost funded by energy suppliers and passed to better-off customers. Miliband defended his net-zero agenda, insisting that increasing clean, homegrown energy will lower bills and protect the UK from fossil fuel price shocks. Critics, including the Conservative opposition, argue that green energy is unreliable and drives up costs, accusing Labour of failing to meet its promise to cut bills by £300. Simon Francis from the End Fuel Poverty Coalition said the scheme still excludes vulnerable groups like disabled people on non-means-tested benefits. Despite controversy, Miliband maintains that moving away from fossil fuels will deliver long-term savings and energy independence. His department received the largest spending review uplift, fuelling his clean energy strategy and reaffirming the government’s commitment to a 2030 fossil-free electricity grid.
THE INDEPENDENT
Over two million additional households will receive the £150 Warm Home Discount this winter, raising the total to six million recipients. The expansion, announced by Labour, removes a previous requirement that limited support to low-income households in energy-inefficient homes. Now, all those on means-tested benefits qualify, including 900,000 families with children and 1.8 million households in fuel poverty. The automatic discount, applied between October and March, is funded by energy suppliers and does not require an application.
Prime Minister Keir Starmer said the measure reflects his commitment to helping working families through the cost-of-living crisis. He likened the expansion to other support plans like free school meals and childcare. The announcement comes ahead of Ofgem’s July price cap reduction, lowering average annual bills from £1,849 to £1,720.
Separately, the Winter Fuel Payment for pensioners, previously cut, will now be paid to all pensioners earning under £35,000, restoring broader support for heating costs in colder months.