Double the number of households in Britain will get £150 off their energy bills this winter as the government changes the rules on who qualifies for the Warm Home Discount. Anyone on means-tested benefits will automatically see the money knocked off their bills no matter what size of property they live in. While debt charities and energy groups have welcomed the move, some say the scheme still leaves out some of those most at risk, including those on non-means tested benefits. Simon Francis from the End Fuel Poverty Coalition said: "With bills still hundreds of pounds higher than in 2020, millions will continue to face unaffordable energy and cold, damp homes this winter". It's energy companies who pay for and distribute the £150 discount to people's bills across England, Scotland and Wales. But it's the government which sets the criteria for who should receive it. Those rules were tightened under the previous administration, limiting the payment to those on the guaranteed element of pension credit, or those on means-tested-benefits living in a home with a high energy score. Now the qualification about property size, type and home energy score is being scrapped. As a result this winter 2.7 million more homes will get this extra energy bill help, including almost a million households with children. This extension comes hot-off-the-heels of the government U-turn to re-instate the Winter Fuel Payment to the majority of pensioners. The bill for expanding the Warm Home Discount will be paid by energy companies and could be passed on through the Standing Charge, so it's possible all customers will see a slight increase in bills in the Autumn to cover this announcement. However, the government say any rise will be cancelled out by savings made by cutting energy company's expenditure and doing more to sort problem debt. Household bills controlled by the energy price cap have been reduced over the summer months, and Standing Charges fell in all areas because the rules on what expenditure companies can pass on was restricted. However, current market expectations are for another rise in gas and electricity bills from the start of October because of higher oil and gas prices. Representing energy suppliers, Energy UK's chief executive Dhara Vyas welcomed today's announcement and said she hoped to see more help for those most in need "by accelerating progress on a new improved targeted support scheme."
Millions more on benefits to get £150 off energy bills
TruthLens AI Suggested Headline:
"UK Government Expands Warm Home Discount to Include Millions More Households"
Bbc News
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TruthLens AI Summary
The UK government has announced a significant change to the Warm Home Discount scheme, which will now allow double the number of households to receive a £150 discount on their energy bills this winter. This adjustment means that anyone receiving means-tested benefits will automatically qualify for the discount, regardless of their property's size. This is a notable shift from previous criteria that limited eligibility to those on the guaranteed element of pension credit or specific means-tested benefits living in energy-efficient homes. As a result, approximately 2.7 million additional households, including nearly a million families with children, will benefit from this financial relief during the winter months. Although this expansion has been positively received by debt charities and energy advocacy groups, there are concerns that the scheme still excludes vulnerable populations, particularly those on non-means tested benefits, which could leave many facing unaffordable energy costs and inadequate living conditions this winter.
The funding for the expanded Warm Home Discount will be sourced from energy companies, which may lead to a slight increase in energy bills for all customers to cover the associated costs. However, the government has indicated that this potential rise will be offset by savings derived from reducing energy companies' expenditures and addressing problematic debt more effectively. In the context of rising energy prices due to increased oil and gas costs, the government aims to mitigate the impact on households. The energy price cap has recently been lowered, and standing charges have decreased as well, but market expectations suggest that energy prices may rise again starting in October. In light of these developments, Energy UK's chief executive expressed hope for further assistance for the most vulnerable through the introduction of a more targeted support scheme to address ongoing energy affordability issues.
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