Millions of UK households to get £150 energy bill discount each winter for the next five years

The government will extend the Warm Home Discount so eligible households receiving qualifying means‑tested benefits automatically receive a £150 electricity bill rebate each winter through 2030/31, the announcement says.

Millions of UK households will receive a £150 discount on their electricity bills each winter until 2030/31 under an expanded Warm Home Discount, the government announced. The payment will be automatic for households that receive a qualifying means‑tested benefit, provided their supplier serves more than 1,000 customers. The move follows last year’s extension, which added around 2.7 million households, including about 900,000 more families with children. Officials said the change is intended to ease pressures from high energy prices and the wider cost‑of‑living situation. Key details: - The Warm Home Discount provides a one‑off £150 electricity bill rebate and will now be paid each winter to eligible households through 2030/31. - Eligibility is tied to receiving qualifying means‑tested benefits; the rebate is applied automatically if the household’s energy supplier has more than 1,000 customers. - The scheme was expanded last year to include roughly 2.7 million additional households, including about 900,000 more families with children. - Ofgem confirmed a 0.2% increase to the energy price cap from January 1, citing costs such as funding for nuclear projects and some winter bill discounts. - Officials said that scrapping the Energy Company Obligation (ECO) scheme is expected to reduce the average household bill by around £150 from April. - The Department for Energy Security and Net Zero (DESNZ) said eligible households who do not receive a letter or the discount by February 27 were told to call 0800 030 9322. Summary: The extension locks in annual £150 winter rebates for qualifying low‑income households through 2030/31, aiming to provide continued support during colder months. Policymakers and industry groups noted the continuation as part of a broader set of changes to household energy costs, including a small rise to the price cap and the planned end to the ECO scheme; DESNZ said households not receiving a letter or the discount by February 27 were told to call 0800 030 9322. The overall effect on household finances will continue to be influenced by these and other policy developments.