Millions of households are set to benefit from the £150 Warm Home Discount each winter throughout the next decade, as part of efforts to address the cost-of-living challenges. The extension of this initiative, announced by Energy Secretary Ed Miliband, comes in response to the significant increases in wholesale energy prices. Eligible households will continue to receive the £150 rebate on their energy bills annually until the winter of 2030/31.

Last year, the Warm Home Discount scheme was expanded by the Government, adding 2.7 million families to the program, bringing the total number of eligible households to approximately six million. Households in England and Wales receiving qualifying means-tested benefits will automatically receive the discount if their energy supplier serves more than 1,000 customers.

Additionally, starting in April, the average household bill will see a £150 reduction by eliminating the Energy Company Obligation (Eco) scheme. Mr. Miliband emphasized the Government’s commitment to addressing the affordability crisis as a top priority.

The average energy bill for households in England, Wales, and Scotland on a standard variable tariff reached £1,758 this winter. Ned Hammond, deputy director of customer policy at Energy UK, welcomed the confirmation of the Warm Home Discount extension, highlighting the crucial support it provides to millions of customers.

Matt Copeland, head of policy and public affairs at National Energy Action, expressed approval of the five-year continuation of the Warm Home Discount, emphasizing its importance for low-income households and the need for ongoing support for energy advice beyond the benefits system.