Millions of families to receive £150 off energy bills every year to 2030
Millions of families will get £150 off their energy bills every year for the remaining ten years, the government has announced.
The Warm Home Rebate provides an automatic rebate to qualifying households each winter to help with the cost of energy. The Department for Energy Security and Net Zero (DESNZ) has confirmed that the scheme will continue until at least 2030/1.
This follows the government’s expansion of the Warm Home Discount last year, adding 2.7 million families to the scheme, bringing the total number of eligible households to nearly six million.
In England and Wales, all households claiming qualified means-tested assistance should automatically receive the discount, as long as their supplier has more than 1,000 customers.
The decision to extend the Warm Home Sale comes amid the ongoing cost of living crisis, driven in part by high wholesale energy prices.
The average annual energy bill for a household staying on a standard variable tariff in England, Wales and Scotland reached £1,758 a year from January.
Regulator Ofgem said the latest 0.2 per cent increase in the energy price cap – the maximum amount energy suppliers can charge for each unit – was driven by spending on nuclear power projects and reductions in some households’ winter bills.
Energy Minister Ed Miliband said: “Tackling the affordability crisis is the Government’s number one priority.
“That’s why today we’re confirming to millions of eligible families across the country that they will receive a £150 Warm Home Discount every winter for the rest of the decade.
“This will give families much-needed peace of mind that they will continue to receive vital support as we take action to reduce bills altogether.”
Matt Copeland, head of policy and public affairs at National Energy Action, said the decision was “welcome news” but added: “It is also crucial that there is continued support for energy advice and measures that reach people who are not covered by the benefits system.
“Without this, many households who cannot be identified through government data matching will be left without the assistance they need.”
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said continuing the discount would “avoid a damaging cliff edge for households trying to weather a fifth winter of the energy bills crisis”.
“But pushing this forward at the same level, with the same rules, risks locking in a plan that we already know will not reach everyone who needs help,” he said.
He added: “Too many people are currently left out entirely or not provided with enough support to make a meaningful difference. This includes households heated only by electricity, people living off the gas grid, those living in park homes and private networks, and families facing much higher costs due to disability, illness or poor housing.”
