Millions of households are set to benefit from the £150 Warm Home Discount each winter until the end of the decade, as part of efforts to address the rising cost of living. Energy Secretary Ed Miliband has announced the extension of this support program in response to the soaring wholesale energy prices. Eligible households will receive the £150 rebate on their energy bills annually until 2030/31.

Last year, the government expanded the Warm Home Discount scheme, adding 2.7 million families and bringing the total number of eligible households to approximately six million. Qualifying households in England and Wales receiving means-tested benefits will automatically receive the discount, provided their energy supplier serves over 1,000 customers.

Additionally, starting from April, the average household bill is expected to decrease by £150 with the discontinuation of the Energy Company Obligation (Eco) scheme. Miliband emphasized the government’s commitment to addressing the affordability crisis, stating that ensuring families receive ongoing financial support is a top priority.

The average annual energy bill for households in England, Wales, and Scotland on a standard variable tariff reached £1,758 this winter. Energy UK’s deputy director of customer policy, Ned Hammond, welcomed the extension of the Warm Home Discount, highlighting its crucial role in assisting millions of customers with their energy bills.

Matt Copeland, head of policy and public affairs at National Energy Action, praised the five-year extension of the Warm Home Discount, emphasizing its importance for low-income households beyond the current parliamentary term. He also stressed the need for continued energy advice and support measures for individuals outside the benefits system.