Energy bills: Millions eligible for £150 Warm Home Discount

This brings the number of households eligible for the warm home discount up to just over 6 million, the Department for Energy Security and Net Zero (DESNZ) has confirmed after a consultation.
The changes remove some restrictions on eligibility and mean every bill payer on means-tested benefits will qualify.
Some 900,000 families with children and 1.8 million homes in fuel poverty are set to benefit from the payment.
Prime Minister Keir Starmer said: '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 said: '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.'
Recommended reading:
Simon Francis, Coordinator of the End Fuel Poverty Coalition, commented: 'Expanding the Warm Home Discount is a welcome step that will help more households this winter.
"But the scheme still leaves out some of those most at risk, including people with long-term health conditions, disabilities and those on non-means tested benefits who often face the highest energy costs.
'With bills still hundreds of pounds higher than in 2020, millions will continue to face unaffordable energy and cold, damp homes this winter.
'Alongside the energy efficiency investment announced in the Spending Review, the government must commit to a permanent social tariff and reform energy pricing to ensure every household can benefit from cheap renewable energy.'
The Conservatives criticised the move, saying energy prices are expected to keep climbing overall.
Andrew Bowie, the acting shadow energy secretary, said: '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.'
What is the Warm Home Discount Scheme?
The Warm Home Discount Scheme is a one-off discount on your electricity bill worth £150.
The money is not paid directly to you but is taken off of your energy bills between October 2024 and March 2025.
You may be able to get the discount on your gas bill instead of your electricity bill if your supplier provides you with both and you are eligible.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Daily Mirror

3 hours ago

• Daily Mirror

Full list of requirements to be eligible for Warm Homes Discount

6 million households are due to receive the £150 discount this winter This winter, millions more individuals will be eligible for the Warm Home Discount, a £150 reduction on their electricity bills. This is due to new eligibility criteria released this month, although the benefit is only set to start being distributed around October. Eligibility for the benefit falls into one of two categories. Previously, these were:. ‌ People receiving the Guarantee element of Pension Credit - Core Group 1. People with low income and high energy costs - Core Group 2. People in Scotland identified by their supplier as at risk of fuel poverty - Broader Group. ‌ However, the recent update has made it so that people in core group 2 no longer need to have high energy costs to qualify. Simply claiming one of the qualifying benefits will be enough to receive the discount this winter. The current full list of qualifying benefits includes: Housing Benefit. Income-related Employment and Support Allowance (ESA). Income-based Jobseeker's Allowance (JSA). Income Support. The 'Savings Credit' part of Pension Credit. Universal Credit. If you receive Child Tax Credit or Working Tax Credit, you may also be eligible, provided your household income falls below a certain threshold. ‌ To qualify, the person receiving the qualifying benefit must be named on the energy bill. The money is not paid to you like cash in hand; instead, it is applied to your bill by your electricity supplier. If you're on a prepayment meter, you might find a voucher arriving via post or email instead. Those residing in Scotland are encouraged to get in touch with their energy supplier if they think they may qualify under the core or broader groups. Official statistics suggest that over 6 million households will benefit from the scheme this year, marking an increase of 2.7 million. Among these, 900,000 are families with children and 1.8 million are homes experiencing fuel poverty. ‌ Prime Minister Keir Starmer commented: "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." While this is a major update for the seasonal benefit. A bigger announcement is expected later this year as the scheme in its current form expires in March 2026, although it has been extended in the past.

Times

7 hours ago

• Times

What war in the Middle East means for your money

The conflict between Israel and Iran is the latest geopolitical shock set to hamper the outlook for the UK economy — and, ultimately, your bank balance. Since the attacks began on June 12, the price of oil has risen to a six-month high. Hopes for interest rate cuts have been dashed, fears of rising inflation have been amplified, and any respite from stock market turmoil appears to have been short-lived. • Read more money advice and tips on investing from our experts This week the prime minister, Sir Keir Starmer, said: 'I'm always concerned about the effect of international issues on people back at home. You saw with Ukraine the direct impact it had on energy bills. Equally, with this conflict, you can see the effect it's having on the economy, particularly on the price of energy.' From petrol prices to pension pots, here's what you need to know: Iran is the third-largest oil producer among the 12 members of the Organisation of the Petroleum Exporting Countries (Opec), and there are worries about how a wider regional war could affect the transport of oil through the Strait of Hormuz, which accounts for about 25 per cent of seaborne crude oil transportation, according to the consultancy Capital Economics. The price of a barrel of Brent crude hit a six-month high of about $78 after Israeli attacks on Iran began, up from about $65 at the start of this month. That is bound to have a knock-on effect on motorists, said David Oxley from Capital Economics: 'A rough rule of thumb is that a $10 rise in the oil price will add about 7p to the price at the pump.' It normally takes about two weeks for oil prices to feed into pump prices, Oxley said. Motorists have, however, had some recent respite from the cost of living crisis as petrol and diesel prices hit their lowest in almost four years. Petrol cost an average of 132p a litre last month, the lowest since July 2021, while diesel was at 138p, the lowest since September 2021, according to the motoring organisation the RAC. While prices are likely to rise, they are not expected to reach the high of March 2022, when Russia's invasion of Ukraine caused the oil price to reach $127 per barrel. The price in sterling peaked in July of that year at more than £100 with pump prices hitting 192p per litre for petrol and 199p per litre for diesel. More than a million homeowners whose fixed deals come to an end this year may have their hopes of further interest rate cuts dashed. The lowest two-year fix was 3.72 per cent last month, but rates are starting to tick up again, according to the property portal Rightmove. The lowest two-year deal is now 3.82 per cent from Lloyds Bank for those with a Club Lloyds account. The lowest five-year fixed rate has gone from 3.78 per cent to 3.88 per cent, also from Lloyds. Lenders had been cutting mortgage rates to compete for business, but changed tack after inflation went from 2.6 per cent for the year to March to 3.5 per cent in April. This makes cuts to the Bank of England base rate less likely — the Bank generally keeps the rate high when inflation is above its target of 2 per cent. The Consumer Prices Index inflation figure for the year to May, released this week, was 3.4 per cent. Uncertainty around President Trump's trade tariffs and conflict in the Middle East has also dampened hopes of further base rate cuts. The Bank held rates at 4.25 per cent this week, which, although a lot higher than the sub 2 per cent rates many mortgage holders will have fixed at three or five years ago, is down from the peak of 5.25 per cent in August last year. Fixed mortgage rates are based on swap rates (the rates at which banks lend to each other, which are in turn based on forecasts of where Bank rate is expected to be in the future), which have edged up over the past week or so, suggesting that mortgage rates could follow. Homeowners who want certainty can lock in a new deal up to six months before theirs ends yet still swap if a cheaper deal comes along. Rising oil prices could also cause other expenses to creep up, particularly if the Iran conflict continues or escalates. Lotanna Emediegwu, an economics lecturer at Manchester Metropolitan University, said that prolonged conflict could drive up energy bills. The price cap that limits how much suppliers can charge customers on standard variable tariffs will work out at an average bill of £1,720 a year for gas and electricity from July 1 (down 7 per cent from today's cap). At the moment analysts expect the cap to go up 2 to 3 per cent in October, but this could change dramatically. He said: 'Until recently, fuel prices had been rising less than other things, so actually mitigating some inflationary pressures. The recent conflict is expected to reverse this trend. 'The financial repercussions extend beyond immediate energy costs into transportation and logistics. Transport expenses are particularly vulnerable to fluctuations in fuel prices. This affects everything from airline fares to shipping costs for products, ultimately hitting consumer prices.' Before June 12, when Israel launched strikes on Iran, inflation had been expected to rise to 3.5 per cent by the autumn — now it could go further. A sustained $10 per barrel rise in the oil price typically pushes up annual inflation by 0.1 to 0.2 percentage points, according to The Economist, meaning that it could be closer to 3.7 per cent by September. Emediegwu said a prolonged blockade of the Strait of Hormuz shipping route could add a further 0.5 to 1 percentage points, which could take it close to 5 per cent. So far the stock market has been fairly resilient to the conflict in the Middle East. The UK's FTSE 100 is down about 0.77 per cent since the turmoil started, while the US's S&P 500 is down about 1.06 per cent. If a sustained conflict leads to an increase in the price of oil, stock valuations may fall — this is because higher oil prices lead to higher inflation, which means interest rates are likely to stay higher for longer, which makes it more expensive for companies to borrow money to grow and often curbs investors' risk appetite. Losers are likely to include airline and travel stocks, as well as so-called growth stocks, which include technology and healthcare companies. Many investors will have exposure to the US 'Magnificent Seven' tech stocks of Microsoft, Apple, Alphabet, Tesla, Amazon, Meta and Nvidia. These companies are often valued on their future earnings potential, which means their stock price can be volatile if company results or wider economic conditions point towards a slowdown of earnings. The good news is that Iran and Israel are a very limited part of the global stock market, so direct exposure for most UK investors will be immaterial. However, Michael Field from the research firm Morningstar said that the risk is that wider markets get jittery about the potential for the conflict to escalate further. Investors should avoid making any kneejerk changes to their portfolio. Ultimately, while geopolitical tensions may create short-term turmoil, historically markets have been resilient in the long term. Jacob Falkencrone from the investment bank Saxo said: 'As an investor, your greatest tool is a disciplined approach — staying informed, remaining calm and focusing on your long-term investment goals rather than reacting impulsively to temporary shocks.'

Daily Mail​

8 hours ago

• Daily Mail​

Lords peers vow to fight law on assisted dying as they warn it may not 'see the light of day' despite narrow backing by MPs

Campaigners last night vowed to fight the assisted dying Bill in the Lords after MPs moved to legalise it in a historic vote. In a sign of the concern about the Bill, it passed through the Commons by just 23 votes yesterday – 32 fewer than when MPs backed it in principle in November. MPs questioned whether there was a clear mandate to introduce one of the most significant social changes in Britain for decades. And peers vowed there would be an 'attritional' fight when the legislation, decried as a 'bad Bill' after multiple amendments were laid and safeguards stripped out, moves to the House of Lords. One warned that it may not 'see the light of day'. The Commons voted 314 to 291 in favour of allowing terminally ill people to end their lives with the help of the State, meaning that when abstentions are included, a majority of MPs did not back the Bill. Sir Keir Starmer and Chancellor Rachel Reeves voted in favour, while opponents included Health Secretary Wes Streeting, Deputy Prime Minister Angela Rayner and Tory leader Kemi Badenoch. Labour MP Kim Leadbeater's Terminally Ill Adults (End of Life) Bill will undergo further scrutiny in the Lords, but peers said there was 'no constitutional reason' why it could not be amended significantly or even thrown out by the Upper House. Following an emotional debate in the Commons, Ms Leadbeater described the vote as a 'huge moment in time' and said it would 'correct the profound injustices of the status quo and offer a compassionate and safe choice to terminally ill people'. TV presenter Dame Esther Rantzen, who has terminal lung cancer and led the campaign for assisted dying, said: 'This will make a huge positive difference, protecting millions of terminally ill patients and their families from the agony and loss of dignity created by a bad death.' But leading opponent Danny Kruger – whose mother, Dame Prue Leith, was outside Westminster campaigning in favour of the legalisation yesterday – said the vote showed support 'is ebbing away very fast'. The Tory MP added: 'I'm hopeful now, inspired by that debate and by the falling away of support for the Bill, that the Lords will feel they have a real job to do – to examine closely how the Bill will operate and to introduce their own amendments to make it safer, or to reject the Bill altogether.' Tory peer and former Cabinet minister Mark Harper said it was possible the Bill may not 'see the light of day'. Lord Harper, who is against assisted dying, told the Mail: 'It's not a government Bill and it wasn't in anybody's manifesto, so there is no constitutional reason why the Lords shouldn't do its job properly and amend the Bill considerably if required.' Baroness Tanni Grey-Thompson – a leading opponent of assisted dying – said disabled people were 'absolutely terrified' about the Bill as she vowed to add significant safeguards in the Lords. It is thought it will take four years to implement the Bill should it clear the remaining stages this year and receive royal assent, meaning the first assisted death in Britain would take place by 2029. This would mark the first time the State sanctioned a death since capital punishment was abolished in 1965, and the Government forecasts that up to 4,500 people could end their lives early each year within a decade. Under the legislation terminally ill people in England and Wales diagnosed with less than six months to live will be allowed to seek medical help to die Opening the debate in the Commons, Spen Valley MP Ms Leadbeater said her Bill proposed a 'robust process that goes further than any other piece of legislation in the world'. She added: 'Giving dying people choice about how they die is about compassion, control, dignity and bodily autonomy. Surely we should all have the right to decide what happens to our bodies and decide when enough is enough.' But after the vote, Tory MP Greg Smith said: 'It is not too late for us to step back from the brink and pull the plug on this Bill, which now lacks majority support in the Commons. I trust the House of Lords to scrutinise the Bill in depth and hope it will never reach royal assent.' Catherine Robinson, from campaign group Right To Life UK, said: 'The Bill leaves the Commons lacking a majority, with fewer than half of all MPs voting for it at its final stage. We will be fighting this Bill at every stage in the House of Lords, where we are confident it can be overturned given its continued loss of support.' The assisted dying Bill that returned to the Commons yesterday was significantly changed from the one presented to MPs at the second reading vote in November. Among radical amendments were the removal of the High Court safeguard – with a senior judge replaced by so-called 'suicide panels' made up of a lawyer, psychiatrist and social worker. The proposed legislation will allow terminally ill adults in England and Wales with fewer than six months to live to apply for an assisted death. Subject to approval by two doctors and an 'expert panel', the terminally ill person would take an approved substance, provided by a doctor but administered only by the person themselves. Religious groups expressed horror at the Bill's passing. Bishop of London the Rt Rev Sarah Mullally, who sits in the House of Lords, said her peers 'must oppose' the Bill due to the 'mounting evidence that it is unworkable and unsafe'.