Chancellor Rachel Reeves has confirmed that everyone receiving Universal Credit will receive an extra £150 boost as part of the government's Warm Home Discount scheme. The initiative aims to help lower-income households manage the cost of heating during colder months.
Eligibility Expanded
Under previous rules, only some Universal Credit claimants qualified for the discount, which the government described as unfair. Now, all recipients will be eligible. The discount is applied directly to energy bills, either as a credit on the account or a top-up voucher, depending on the payment method.
Additional Support for Pensioners
Low-income pensioners receiving the Guarantee Credit element of Pension Credit, as well as households on other benefits such as Housing Benefit, Employment and Support Allowance, and Income Support, will also continue to receive the discount.
The announcement comes as energy bills are set to rise by £221 per year for the typical household from July. The Warm Home Discount provides a one-time reduction of £150 on winter bills, typically applied between November and January.
Prime Minister Keir Starmer commented: "We're taking £150 off energy bills. That's £300 for the six million poorest families. That's the difference a Labour Government makes."
Despite the support, the government is likely to face pressure to do more if energy bills remain high throughout the year.
