DWP payment of £150 confirmed for millions who meet new criteria
Millions of households will see their energy bills slashed by £150 this winter, as the UK Government rolls out another substantial support package to alleviate cost of living pressures for working families through the Plan for Change. More than 6 million households will benefit from the Warm Home Discount Scheme this year - a rise of 2.7m households.
This includes 900,000 additional families with children and a total of 1.8m households experiencing fuel poverty. Every billpayer receiving means-tested benefits will now qualify, scrapping restrictions that previously left out many who desperately needed assistance and offering reassurance to millions more families.
The initiative will see 240,000 Scottish households receive the discount for the first time this winter. However, it's crucial to understand the £150 is paid directly from the Department for Work and Pensions (DWP) to the energy supplier - households do not receive the cash, reports the Daily Record.
The Department for Energy Security and Net Zero said the significant expansion of support for working families represents the latest in a series of cost of living measures 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 dropped at the beginning of July, helping slash costs throughout the summer months. Ofgem's next price cap adjustment is scheduled to take effect on October 1.
This broadening of the Warm Homes Discount Scheme enables families to prepare for the colder months knowing they will receive assistance, offering them reassurance and confidence before temperatures begin to plummet.
The UK Government stated it has also shielded working people's wages from increased taxes, maintained the fuel duty freeze and is boosting the minimum wage to deliver pay increases of up to £1,400 annually to millions of low-paid workers.
Pensioners throughout the UK earning less than £35,000 will also be entitled to either a Winter Fuel Payment or Pension Age Winter Heating Payment this year, valued between £200 and £305. The expansion of the Warm Home Discount will be balanced by new efficiency savings across the energy system.
For instance, Ofgem has confirmed a reduction in the operating cost allowance of the price cap for the average billpayer, which will result in lower bills. Ofgem's strategies to decrease the overall consumer debt stock, currently recouped via a levy on all bills, will also generate savings that contribute to funding the Warm Homes Discount.
Adam Scorer, Chief Executive of National Energy Action, commented: "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."
This change implies that all households where the means-tested benefit recipient (or their partner or legal appointee) is named on the energy bill will now qualify for the £150 electricity bill rebate. It's worth noting 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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