This brings the total number of eligible households to over 6 million, according to the Department for Energy Security and Net Zero (DESNZ).

The expansion of the scheme removes certain eligibility restrictions, ensuring that every bill payer on means-tested benefits qualifies. As a result, approximately 900,000 families with children and 1.8 million households struggling with fuel poverty will benefit from the payment.

Prime Minister Keir Starmer stated: “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 Conservatives criticised the move, saying energy prices are expected to keep climbing overall.”

Acting Shadow Energy Secretary, Andrew Bowie, commented: ” Labour promised to cut everyone’s energy bills by £300 but they have increased by £280 and are forecast to keep going up. Energy bills need to come down but this announcement will cut bills for just a quarter of households whilst increasing them for everyone else.

“Kemi Badenoch and I have been clear that net zero by 2050 is impossible without bankrupting Britain and making hard-working families worse off.”