The Labour Government has announced a significant new package to ease the cost of living, with measures designed to reduce energy bills for millions of families. Prime Minister Keir Starmer confirmed that all households will see their average bills fall by £150 from April, while the poorest will receive further support through the Warm Home Discount.
This announcement forms part of a broader £15 billion programme aimed at tackling fuel poverty and making British homes more energy efficient. Starmer said the initiative would deliver the largest public investment in home upgrades in the country’s history, with long-term savings expected for millions of families.
£150 Energy Bill Reduction to Reach Millions This Spring
From April, the Government will implement a new pricing structure for gas and electricity that will reduce the average household energy bill by £150. This measure applies to all households, providing broad relief as electricity prices continue to challenge family budgets.
According to statements from the Prime Minister, the six million lowest-income families will benefit from a combined £300 reduction. This includes the £150 reduction in energy charges and a one-off £150 Warm Home Discount for people on means-tested benefits such as Universal Credit. Eligible pensioners also qualify for this discount.
“That’s the difference a Labour Government makes.” Starmer said, adding that the plan would offer “security and a fair shot” to struggling households. According to reports, the pricing reform is designed to make energy fairer for consumers and particularly beneficial for those in lower-income brackets.
The scheme aims to simplify energy bills and ensure support is targeted. As part of the package, a national push to deliver support automatically will avoid the need for households to apply separately for each discount, reducing administrative barriers and accelerating relief.
Warm Homes Plan to Deliver Large-Scale Home Upgrades
The Warm Homes Plan, backed by £15 billion in government funding, is being described by Labour as the biggest upgrade of British homes ever undertaken. It targets both immediate and long-term cost reductions through energy efficiency measures such as insulation, solar panels, and low-carbon heating systems.
According to the Government, the plan will help lift up to one million families out of fuel poverty by 2030, with upgrades to another five million homes expected to cut electricity costs significantly. Poorer households will be offered complete retrofit packages, including free installation of solar panels and home batteries, which typically cost up to £12,000.
The package also includes a universal £7,500 grant for heat pumps and low-interest loans for additional home energy improvements. Rules will require all new homes to be built with solar panels by default, and landlords will face new obligations to improve energy performance in rental properties. Some neighbourhoods could see coordinated upgrades at street level to streamline the work and boost efficiency.
Energy Secretary Ed Miliband said it was “a scandal that millions of people in our country do not have the security of a home that is warm, affordable and safe.” He called the plan a “national project” to confront fuel poverty and household energy costs. Simon Francis from the End Fuel Poverty Coalition described the plan as “a rescue mission for the coldest, dampest homes in Britain.” The Government has confirmed the plan will be applied across all UK nations, with devolved governments receiving dedicated allocations to implement the scheme locally.
