Rising fuel costs have placed significant pressure on UK households, with energy bills remaining well above pre-crisis levels. In response, the government has confirmed a major expansion of its Warm Home Discount programme, designed to support low-income families through the winter months.
The Department for Energy Security and Net Zero (DESNZ) has announced that an additional 2.7 million homes will now qualify for the £150 energy bill discount. This expansion follows the removal of key eligibility criteria and marks a substantial shift in the government’s approach to fuel poverty support.
Wider Eligibility as Home Energy Cost Threshold Is Scrapped
The revised Warm Home Discount scheme now automatically includes all households on means-tested benefits, regardless of their home’s energy efficiency or size. According to DESNZ, the rule change increases the total number of eligible households to over six million. Previously, the discount was limited to those with high energy costs or specific home ratings.
Approximately 1.8 million households in fuel poverty and 900,000 families with children will benefit from the changes, according to government figures. Prime Minister Keir Starmer said the move was part of his administration’s commitment to “provide security and peace of mind” for working families.
The £150 rebate will be applied directly to electricity bills between October and March. No application is required, as energy suppliers are responsible for distributing the discount to eligible customers across England, Scotland, and Wales.
Government Defends Move Amid Criticism Over Long-Term Support Gaps
The initiative has been welcomed by several consumer advocacy groups, but some have raised concerns about its long-term sufficiency.
Adam Scorer, chief executive of National Energy Action, described the announcement as “hugely positive news”, while cautioning that the rebate itself “has only increased by a meagre £10 during a period in which energy bills have gone up by £500 a year.”
Critics, including the End Fuel Poverty Coalition, point out that the discount excludes many vulnerable groups not receiving means-tested benefits, such as people with disabilities or long-term health conditions. Simon Francis, the coalition’s coordinator, warned that “millions will continue to face unaffordable energy and cold, damp homes this winter.”
The scheme is funded by energy suppliers, and while the government claims the cost will be offset by efficiency savings and reforms to consumer debt handling, some analysts expect marginal increases in standing charges.
