The Warm Home Discount will be expanded meaning 6 million households will receive £150 off their energy bills this winter
In a move to ease the pressure on working families this winter, the UK government has announced an expanded package of cost-of-living support under its flagship Plan for Change, which will see over six million households receive a £150 discount on their energy bills.
The measure marks a substantial extension of the Warm Home Discount scheme, which previously had narrower eligibility criteria. Now, all energy bill payers receiving means-tested benefits will qualify, sweeping away previous restrictions and offering relief to an additional 2.7 million households. This includes 900,000 more families with children and 1.8 million households currently living in fuel poverty.
The move comes as part of the government’s broader efforts to support low and middle-income families grappling with the ongoing cost-of-living crisis. Ministers argue the expansion has been made possible due to the government’s success in stabilising the economy, reducing inflation, and repairing the public finances.
Prime Minister Keir Starmer said the decision to extend the energy discount was rooted in a personal commitment to provide peace of mind to working people. “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,” he said. “Providing security and peace of mind for working people is deeply personal to me as Prime Minister and foundational for the Plan for Change. Extending this £150 energy bills support to millions more families will make a real difference.”
Energy Secretary Ed Miliband described the package as “vital” and noted that it came in addition to the expected drop in the energy price cap this July. “Millions of families will get vital support with the cost of living this coming winter,” he said. “This expansion of the Warm Home Discount means families can plan for winter in the knowledge that they will receive support, giving them certainty and peace of mind before summer.”
Alongside the direct bill support, the government confirmed it is backing a new strategy proposed by Ofgem to tackle the record levels of energy debt built up during the 2022–2024 energy crisis. Ofgem’s reforms aim to reduce the overall stock of consumer debt — currently recovered through a levy on all bills — which in turn will help fund the Warm Home Discount. Additionally, the regulator has confirmed a decrease in the operating cost allowance under the energy price cap, which will directly reduce average household bills.
This latest announcement adds to a growing list of measures introduced under the Plan for Change, aimed at easing pressures on households. Since last summer, the government has cut interest rates four times, helping to lower mortgage repayments. Free school meals have been rolled out to over 500,000 more children, and breakfast clubs are being extended to all schoolchildren across the country. The cost of school uniforms has been reduced, and access to 30 hours of free childcare has been broadened for working parents.
The government has also frozen fuel duty and raised the minimum wage, which ministers claim has delivered pay rises of up to £1,400 a year for low-income workers. Pensioners have not been left out, with every person over the State Pension age in England and Wales and earning under £35,000 set to receive a Winter Fuel Payment this winter — a measure that will benefit around nine million pensioners.
The reaction from energy and anti-poverty organisations has been broadly positive. Adam Scorer, Chief Executive of 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.”
David Buttress, CEO of OVO, called the announcement “welcome relief”, saying the expansion of the scheme was a “step in the right direction” and praised the government’s focus on directing help to those most in need. Energy UK’s Chief Executive Dhara Vyas also welcomed the move, though she urged further steps. “With customer debt at record levels, we hope to see more measures — from Ofgem’s debt relief scheme to a fairer pricing structure for electricity,” she said.
Chris O’Shea, CEO of Centrica, which owns British Gas, said the changes would “bring real warmth when it matters most” and confirmed the company would continue supporting struggling customers through both the British Gas Energy Trust and a voluntary £140 million support package.
Chris Norbury, CEO of E.ON UK, echoed those sentiments, adding that targeted support must be coupled with longer-term changes such as improved insulation, solar panels, and smart tariffs to build a more affordable and sustainable energy system. “Alongside the Future Homes Standard and funding for the Warm Homes Plan, this is another positive move towards a fairer, more affordable energy system for everyone,” he said.
