Warm Home Discount Scheme could pay millions more this year | Personal Finance | Finance
Nearly three million more households in Great Britain could be in line for discounts on their energy bills as the government reviews new proposals. The close of an online consultation on March 24 paved the way for the UK Government to consider public feedback.
One in five UK families may gain financial assistance through an expanded Warm Home Discount Scheme if new strategies proposed by the Department for Energy Security and Net Zero (DESNZ) come into effect next winter (2025/26). This reform could mean an additional 2.7 million households, including nearly one million with children, would qualify for the £150 discount—increasing the eligible bracket to about 6.1 million homes.
This potential expansion follows the watchdog Ofgem’s disclosure that another energy price hike is looming on April 1. Under the increase, standard household tariffs will see a 6.4 per cent rise, taking annual costs from £1,738 to £1,849, which translates into an additional £9.25 each month or £111 over the year, reports the Daily Record.
DESNZ links this April’s anticipated price uptick to the “gas price spikes” experienced over the winter and the ongoing repercussions of Russia‘s military action in Ukraine, pointing out that energy prices are independently determined and remain outside the control of the UK Government.
Energy Secretary Ed Miliband has vowed to tackle the energy crisis head-on, declaring: “This Government is determined to do everything we can to protect people from the grip of fossil fuel markets. Expanding the Warm Home Discount can help protect millions of families from rising energy bills, offering support to consumers across the country.”
Miliband underscored the Government’s resolve to safeguard the public, asserting: “This is a Government that will always stand up for working people.”
He further outlined the long-term strategy for energy independence and cost reduction: “Alongside this, the way to deliver energy security and bring down bills for good is to deliver our mission to make Britain a clean energy superpower – with homegrown clean power that we in Britain control.”
In collaboration with Ofgem, the Government is fast-tracking plans for a potential debt relief scheme aimed at addressing “unsustainable debt built up during the energy crisis”.
“The proposed debt support scheme, alongside the Warm Home Discount, is an important first step to cut the costs of servicing bad debt, which is currently contributing to higher bills for all billpayers”, stated DESNZ.
DESNZ further explained their objective to “reduce the debt allowance to pre-crisis levels”, noting that Ofgem’s assessment suggests the proposed measures could reduce these costs by £25 to £30 per year.
Jonathan Brearley, Chief Executive of Ofgem, has voiced his concerns: “Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow.
“This puts families under huge stress and increases costs for all customers.
“We’re working on plans that might provide households with overwhelming debt the fresh start they require to proceed.
“We are pleased with the Government’s backing for these plans, and their intentions to broaden the Warm Home Discount, offering financial assistance to nearly three million additional homes in dire need.”