Finance

Millions more to get £150 off energy bills this winter

Ryan Brothwell 2 min read
Millions more to get £150 off energy bills this winter

Millions of households will see their energy bills cut by £150 this winter after the government announced a new package of support to ease the cost of living.

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 and providing peace of mind to millions more families. The energy price cap is also falling in July and today’s announcement adds a further £150 in direct support for millions, the government said.

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

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

“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,” said Prime Minister Keir Starmer.

“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.”

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