- Millions will now receive £150 each winter until the winter of 2030
Millions will receive £150 each winter until the winter of 2030, the Government has said, as it extends its Warm Home Discount to the end of the decade.
The scheme started in 2011, and had previously been extended until March 2026.
It pays a £150 credit into the energy accounts of low-income and vulnerable customers each year.
This is paid via their supplier and usually arrives at some point between October and March, as it is designed to make heating bills more affordable in the colder months.
Some six million households are eligible to receive the payout, after the Government brought an extra 2.7million homes into the scheme last year.
It applies to those who get the guarantee credit element of Pension Credit, or are on a low income.
Separately, the Government said it will cut the average household bill by £150 from April as a result of scrapping the Energy Company Obligation scheme
Being on a low income is defined by the Department of Energy Security and Net Zero as receiving one of more of the following benefits:
- Housing benefit
- Income-related Employment and Support Allowance
- Income-based Jobseeker’s Allowance
- Income Support
- The ‘savings credit’ part of Pension Credit
- Universal Credit
The qualifying person’s name must be on the energy bill, and they must use an energy supplier which has more than 1,000 customers.
It is available to those on pre-pay meters as well as those who pay monthly bills, but is usually paid in the form of vouchers.
Those who are eligible for the scheme, or who might be eligible but need to provide further information, will normally receive a letter between October and January.
Average energy bills reached £1,758 a year over the winter in England, Scotland and Wales, with the energy price cap once again increasing.
Energy watchdog Ofgem said the 0.2 per cent increase to the price cap, which came into effect at the start of January, is a result of discounts to winter bills and the need to fund nuclear power projects.
Bills are down from their peak in 2022, but are considerably higher than before the global energy crisis.
Energy Secretary Ed Miliband said: ‘Tackling the affordability crisis is the Government’s number one priority.
‘That is why we are today confirming to millions of eligible families across the country that they will receive the £150 Warm Home Discount every winter for the rest of the decade.
‘That will give families much-needed peace of mind that they will continue to receive vital support, as we take action to bring down bills for good.’
Separately, the Government said it will cut the average household bill by £150 from April as a result of scrapping the Energy Company Obligation scheme.
Matt Copeland, head of policy and public affairs at charity National Energy Action, said: ‘The five-year continuation of the Warm Home Discount is welcome news for low-income households and provides support that extends beyond this parliament.
‘It is also essential that support is continuing for energy advice and for measures that reach people who are not within the benefits system.
‘Without this, many households who cannot be identified through Government data matching will remain without the help they need.’
People who have not received the discount but think they may be eligible can call the discount scheme on 0800 030 9322 until 27 February.