DWP heating bill help set to provide £150 to six million people this winter
Millions of households will see their energy bills cut by £150 this winter, as the UK Government delivers another major package of support to ease the cost of living for working families through the Plan for Change.
Over 6 million households will benefit from the Warm Home Discount Scheme this year - an increase of 2.7m households, including 900,000 more families with children and a total of 1.8m households in fuel poverty. Every billpayer on means-tested benefits will now qualify, removing restrictions that previously excluded many who needed help and providing peace of mind to millions more families.
The move will see 240,000 Scottish households receive the discount for the first time this winter. However, it's important to be aware the £150 is paid directly from the Department for Work and Pensions (DWP) to the energy supplier - households do not receive the money.
The Department for Energy Security and Net Zero said the major expansion of support for working families is the latest in a raft of cost of living support made possible because the UK Government has stabilised the economy, fixed the foundations and repaired the public finances - deliberate choices which are helping provide security and more money in the pockets of working families through the Plan for Change.
Prime Minister Keir Starmer recently said: "I know families are still struggling with the cost of living, and I know the fear that comes with not being able to afford your next bill.
"Providing security and peace of mind for working people is deeply personal to me as Prime Minister and foundational for the Plan for Change. I have no doubt that, like rolling out free school meals, breakfast clubs and childcare support, extending this £150 energy bills support to millions more families will make a real difference."
Energy Secretary Ed Miliband added: "Millions of families will get vital support with the cost of living this coming winter, demonstrating this government's commitment to put money in people's pockets through our Plan for Change."
The energy price cap fell at the start of July, helping reduce costs over the summer. The next Ofgem price cap is due to come into effect on October 1.
This expansion of the Warm Homes Discount Scheme means families can plan for winter in the knowledge that they will receive support, giving them certainty and peace of mind before the temperature starts to drop.
The UK Government said it has also protected working people's payslips from higher taxes, frozen fuel duty and are increasing the minimum wage to give pay rises of up to £1,400 a year to millions of low-income workers.
Pensioners across the UK with an income below £35,000 will also receive either a Winter Fuel Payment or Pension Age Winter Heating Payment this year, worth between £200 and £305.
The expansion of the Warm Home Discount will be offset by new efficiency savings across the energy system. For example, Ofgem have confirmed a decrease in the operating cost allowance of the price cap for the average billpayer which will take money off bills.
Ofgem's plans to reduce the overall stock of consumer debt, which is currently recouped via a levy on all bills, will also produce savings that help to fund the Warm Homes Discount.
Adam Scorer, Chief Executive, National Energy Action said: "It's hugely positive that across Great Britain, many more low-income households on means-tested benefits will get some direct support to tackle unaffordable bills and record energy debts this winter.
"Vitally, this includes many more low-income working-age households with children, who are living with the daily consequences of not having access to enough energy at home."
The change will mean that all households where the means-tested benefit recipient (or their partner or legal appointee) is named on the energy bill will now be eligible to receive the £150 electricity bill rebate. It's worth repeating that this money is paid directly to the energy supplier.
The number of families who will receive the discount for the first time, broken down by region, include:
Scotland: 240,000
Wales: 110,000
North East England: 100,000
North West England: 280,000
Yorkshire and the Humber: 210,000
East Midlands: 160,000
West Midlands: 270,000
East of England: 250,000
London: 570,000
South East England: 350,000
South West England: 220,000
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