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Rachel Reeves says 'it's not just pensioners who need help' as £150 off energy bills announced
Millions more families will get £150 off their energy bills this winter as Rachel Reeves says 'it's not just pensioners who need help'.
More than 3m households on certain means-tested benefits already receive the warm homes discount but around half of those eligible do not get it. That's because the scheme is currently run on a first-come-first-served basis which means millions miss out.
The government has announced that, from this winter, everyone eligible for the £150 one-off discount will be paid 'automatically'.
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It means more than 6m families will now receive the payment with 280,000 households in North West set to get it for the first time.
It comes after the government announced a U-turn on the winter fuel payment restoring it for 7.5m pensioners who lost it last year.
Speaking to the Manchester Evening News, the Chancellor said this latest move will put more money in the pockets of families too.
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.
"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.
"This is recognising that those people, including many people on Universal Credit in work, struggle with the cost of living and this puts more money into their pockets and we're doing it this winter."
The move, which is due to be announced on Wednesday (June 18), means that every billpayer on means-tested benefits will now qualify for the Warm Homes Discount, removing restrictions that previously excluded many families, benefiting 2.7m more households.
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 Warm Home Discount will be offset by new 'efficiency savings' across the energy system, including a cut by the energy regulator Ofgem in the operating cost allowance of the price cap for the average billpayer which will take money off bills.
Ms Reeves told the M.E.N.: "This isn't going to be adding to anyone's bills and it's not going to be out of taxes.
"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."
