Prime Minister Keir Starmer has confirmed that the vital cost-of-living support fund will continue for at least the next five years, providing much-needed relief for millions of low-income households.
Known as the Warm Home Discount (WHD), this scheme offers approximately six million households an annual £150 payment each winter to help cover energy bills. This winter, the support was extended to reach twice the usual number of households, and the government has now committed to maintaining the program through to 2030/31.
The continuation of the WHD brings greater certainty to eligible families, including individuals on Pension Credit and now all recipients of Universal Credit (UC) — a notable expansion from before, when only some UC claimants qualified.
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Depending on payment methods, the discount appears either as a credit on energy accounts or as a top-up voucher, typically distributed between November and January each year.
This support is in addition to a separate government initiative announced recently: a £150 average cut to energy bills starting in April. Together, these measures amount to £300 in savings for eligible households.
Prime Minister Starmer emphasized the significance of these efforts, stating, “We’re taking £150 off energy bills. That’s £300 for the six million poorest families. The Warm Homes Plan we’re announcing is the biggest ever public investment in upgrading British homes. It will lift one million homes out of fuel poverty, tackling the cost of living. That’s the difference a Labour Government makes.”