Rachel Reeves has confirmed that millions of Universal Credit claimants will receive a £150 bonus to help with energy costs this winter. The Government has outlined a support scheme aimed at assisting lower-income households with the rising cost of living.
Warm Home Discount expansion
The Warm Home Discount, which provides a one-time £150 reduction on energy bills during the colder months, has been expanded. Following recent changes to qualifying rules, every Universal Credit claimant now qualifies for the discount. Approximately six million households are expected to receive this help later this year, doubling the number from previous years.
Energy suppliers will apply the discount directly to bills, either as credit on the energy account or as a top-up voucher, depending on how customers pay. The initiative is designed to keep homes warm for the most vulnerable during the most expensive time of year.
Rising energy bills
The support comes as energy bills are set to rise again in the summer. The typical household will pay an additional £221 per year from July, increasing financial pressure heading into winter. In addition to Universal Credit claimants, low-income pensioners receiving the Guarantee Credit part of Pension Credit, as well as households on Housing Benefit, Employment and Support Allowance, and Income Support, also qualify for the discount.
Government commitment
Prime Minister Keir Starmer earlier stated: "We're taking £150 off energy bills. That's £300 for the six million poorest families. That's the difference a Labour Government makes." The discount is expected to be applied between November and January.
