Ministers have confirmed that millions of households will continue receiving the £150 Warm Home Discount on their energy bills each winter through to 2030/31.
The confirmation means around six million eligible households across the UK will remain covered by the scheme for the rest of the decade.
According to the Government, extending the programme is intended to give families greater certainty at a time when energy costs remain a significant pressure.
Typical annual bills for households on standard variable tariffs currently stand at £1,758 across England, Wales and Scotland.
Ofgem introduced a 0.2 per cent rise in the energy price cap in January, a change the regulator said was driven by higher network and operating costs, including funding for nuclear power and winter support schemes.
Under the Warm Home Discount, households in England and Wales receiving qualifying means-tested benefits should continue to receive the £150 rebate automatically, provided their energy supplier serves more than 1,000 customers.
The Department for Energy Security and Net Zero has stressed that most eligible households do not need to apply, although anyone who believes they qualify but has not received confirmation is being urged to get in touch.
Officials have advised people to call 0800 030 9322 before February 27 if they think they are eligible but have not been notified.
Millions of households will continue receiving the £150 Warm Home Discount
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Energy Secretary Ed Miliband said the extension underlines the Government’s focus on affordability, describing the Warm Home Discount as central to its efforts to ease pressure on household budgets.
He said the commitment would give families “much-needed peace of mind” as ministers work to bring down bills “for good”.
Alongside the extension, ministers have confirmed that average household energy bills are expected to fall by £150 from April, following the removal of costs linked to the Energy Company Obligation scheme.
Industry figures have welcomed the long-term certainty provided by the Warm Home Discount’s continuation.
Energy Secretary Ed Miliband said the extension underlines the Government’s focus on affordability
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PANed Hammond, deputy director of customer policy at Energy UK, said confirmation that the scheme will run until the end of the decade, particularly after its recent expansion, offers vital ongoing support to millions of customers.
He added that the industry looks forward to working with ministers on improvements, including better targeting and tiered levels of assistance.
Charities supporting low-income households also responded positively, while urging further reform.
Matt Copeland, head of policy and public affairs at National Energy Action, said the five-year continuation offers stability and extends support beyond the current parliament.
He emphasised the importance of advice services to ensure eligible households access the help available and highlighted the need to reach those not currently covered by benefits-linked support.
Campaigners, however, warned that the scheme’s existing structure still leaves gaps.
Simon Francis, coordinator of the End Fuel Poverty Coalition, cautioned that extending the programme without changes risks entrenching a system that fails to reach everyone in need.
He pointed to households reliant on electric heating, those living off the gas grid, residents of park homes and private energy networks, and people with disabilities, long-term illnesses or poor-quality housing as groups facing disproportionately high energy costs.
He argued that clearer application routes and enhanced support for higher-cost households are essential.
No further changes to eligibility criteria or payment levels have been announced.
Ministers maintain that the Warm Home Discount will remain a central pillar of energy bill support through to 2030/31.