The government has just announced that millions more families will get £150 knocked off their energy bills this winter, with Rachel Reeves emphasizing that “it’s not just pensioners who need help.”
Right now, more than 3 million households receiving certain means-tested benefits already benefit from the Warm Homes Discount. But millions more eligible families miss out, simply because the scheme is currently run on a first-come, first-served basis.
But from this winter, that’s all about to change. Now, anyone eligible for the one-off £150 discount will receive it automatically, meaning over 6 million families will get the help they need. In fact, 280,000 households in the North West will get it for the very first time, reported the Manchester Evening News.
This new move comes on the back of the government’s recent U-turn on the winter fuel payment, which will now be restored for 7.5 million pensioners who lost out last year.
Speaking to the Manchester Evening News, Chancellor Rachel Reeves explained how the change would help put more money back into families’ pockets. She said: “This is a recognition that it’s not just pensioners who need help with their bills, absolutely. As a government, we are determined to make ordinary working people better off.”
She added that the government is also focused on supporting families through the cost of living crisis, noting: “That’s why in the spending review last week, we did free school meals for families whose parents or whoever’s at home is on Universal Credit which lifts 100,000 children out of poverty.”
The new plan will see the Warm Homes Discount extended to everyone on means-tested benefits, removing previous restrictions and allowing an additional 2.7 million households to benefit. This includes pensioners who receive Pension Credit and continued to receive the Winter Fuel Payment after it was cut last year.
The expansion of the discount will be balanced by new “efficiency savings” across the energy system. The energy regulator Ofgem has already cut the operating cost allowance of the price cap for the average billpayer, meaning the savings will help offset the cost of the Warm Homes Discount.
Reeves assured the Manchester Evening News that the policy wouldn’t add any additional strain on household bills. “This isn’t going to be adding to anyone’s bills and it’s not going to be out of taxes,” she said. “We’ve worked with the regulator on reforming the regulation to be able to afford this warm homes discount. No one will see a rise in their bills because of it and no one will see higher taxes because of it.”
This latest move aims to support families who are struggling with the rising costs of living and heating their homes, especially as colder months approach. For many, the £150 discount will provide much-needed relief during a tough winter.
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