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In a bid to assist more households in Britain this winter, the government is adjusting the eligibility criteria for the Warm Home Discount, allowing double the number of households to receive a £150 reduction on their energy bills. Under the new rules, anyone receiving means-tested benefits will automatically qualify for the discount, regardless of the size of their property. While this change has been met with approval from debt charities and energy groups, concerns have been raised about certain vulnerable groups still being excluded, such as those on non-means tested benefits.
Simon Francis from the End Fuel Poverty Coalition expressed concerns about the affordability of energy bills, stating that millions of households will continue to struggle with unaffordable energy costs and living in cold, damp homes this winter. The initiative to provide the £150 discount is funded and administered by energy companies across England, Scotland, and Wales, with the government determining the eligibility criteria for recipients. Previously, the discount was restricted to those on the guaranteed element of pension credit or individuals on means-tested benefits living in properties with a high energy score.
However, the government has decided to remove the limitations based on property size, type, and home energy score, resulting in an additional 2.7 million homes receiving the energy bill assistance this winter, including nearly a million households with children. This expansion follows a recent government U-turn to reinstate the Winter Fuel Payment for the majority of pensioners. The costs associated with extending the Warm Home Discount scheme will be covered by energy companies and may be reflected in a slight increase in bills through the Standing Charge in the coming months, although the government assures that any rise will be offset by savings generated from reducing energy company expenditure and addressing problem debt.
Despite reductions in household bills controlled by the energy price cap over the summer months and decreases in Standing Charges due to restrictions on passing on expenditure by companies, there are expectations of a rise in gas and electricity prices starting in October because of increased oil and gas prices. Energy UK’s chief executive Dhara Vyas welcomed the government’s decision to extend the Warm Home Discount and called for further support for the most vulnerable individuals through an enhanced targeted support scheme. The recent Spending Review confirmed a substantial allocation of £13.2 billion towards the Warm Homes Plan, which aims to enhance energy efficiency in homes and reduce heating costs for residents
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