Millions more households will receive £150 off their energy bills this winter as the Government expands the Warm Home Discount scheme. Anyone on means-tested benefits will automatically qualify, regardless of property size, type, or energy rating.
This change removes rules introduced by the previous administration, which restricted the payment to households on the guaranteed element of pension credit or those living in energy-inefficient homes.
As a result, an additional 2.7 million households across England, Scotland, and Wales will benefit, including nearly a million with children.
Debt charities and energy groups have broadly welcomed the move, calling it a step in the right direction. However, some have criticised the scheme for excluding people on non-means-tested benefits, who may still be at risk.
Energy suppliers fund and administer the Warm Home Discount, though the Government sets the eligibility rules. With this expansion, energy companies are expected to bear the additional cost, a bill that may be passed on to all customers via an increase in Standing Charges.
That said, the Government insists any rise will be offset by new rules limiting what suppliers can charge, and by efficiency savings in debt management.
Following these changes, Standing Charges have fallen over the summer, and the overall energy price cap has also come down. However, analysts warn of further bill increases from October due to global rises in oil and gas prices.
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