Millions of families to get £150 off energy bills every year to 2030

Around six million families will benefit from the extension

Millions of families are set to get £150 off their energy bills every year for the rest of the decade, the government has announced.

The Warm Home Discount gives an automatic rebate to eligible households every winter to help with the cost of energy. The scheme is now set to continue until 2030/1 at least, the the Department for Energy Security and Net Zero (DESNZ) has confirmed.

It follows the government’s expansion of the Warm Home Discount last year, adding 2.7 million families to the scheme and bringing the total number of eligible households to around six million.

All households in England and Wales who are claiming a qualifying means-tested benefit should get the discount automatically, as long as their supplier has more than 1,000 customers.

Millions of families are set to receive £150 a year off their energy bills every year for the rest of the decade (Yui Mok/PA) (PA Archive)

The decision to extend the Warm Home Discount comes amid the ongoing cost-of-living crisis, driven in part by high wholesale energy prices.

The average annual energy bill for a household in England, Wales and Scotland remaining on a standard variable tariff reached £1,758 a year from January.

Regulator Ofgem said the latest 0.2 per cent increase to the energy price cap - the maximum amount energy suppliers can charge for each unit - was being driven by spend on nuclear power projects and discounts to some households’ winter bills.

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.”

Energy secretary Ed Miliband said: “Tackling the affordability crisis is the Government’s number one priority.” (Reuters)

Matt Copeland, head of policy and public affairs at National Energy Action, said the decision is “welcome news” but added: “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.”

Simon Francis, coordinator of the End Fuel Poverty Coalition, said keeping the discount in place “avoids a damaging cliff-edge for households struggling through a fifth winter of the energy bills crisis.”

“But simply rolling it forward at the same level, with the same rules, risks locking in a scheme that we already know doesn’t reach everyone who needs help,” he said.

He added: “Right now, too many people are left out altogether or not given enough support to make a meaningful difference. This includes households with electric-only heating, people living off the gas grid, residents of park homes and private networks, and families facing much higher costs because of disability, illness or poor housing.”