Nearly three million more households will receive a £150 boost next winter if new proposals go ahead. The UK Government is reviewing an online consultation that closed on March 24.

The proposals, put forward by the Department for Energy Security and Net Zero (DESNZ), include expanding the £150 Warm Home Discount scheme, which would see one in five families in Britain receive financial help next winter. This would translate to around 2.7 million extra households, including nearly one million with children, bringing the total number of eligible homes to an estimated 6.1 million.

The consultation proposes to extend the scheme to all households on means-tested benefits.

Additionally, it proposes to extend the Park Homes Warm Home Discount scheme to include other individuals without a direct relationship with an energy supplier while maintaining the current budget.

Families currently qualify for the scheme if they receive the Guarantee Credit element of Pension Credit or are on a low income and have high energy costs.

The consultation comes in response to the upcoming increase in energy bills, set to take effect on April 1. Regulator Ofgem hiked the energy price cap between April to June by 6.4%.

The new price cap means a typical household will pay £1,849 annually for gas and electricity for a standard dual-fuel direct debit plan. This is an extra £111 a year on average compared to the current cap, set from January to March.

Energy unit prices are set independently from the Government, and the Department for Energy Security and Net Zero (DESNZ) said the hike is due to “gas price spikes” this winter and the ongoing effects of Russia’s invasion of Ukraine.

Energy Secretary Ed Miliband said: “This Government is determined to do everything we can to protect people from the grip of fossil fuel markets. Expanding the Warm Home Discount can help protect millions of families from rising energy bills, offering support to consumers across the country. This is a Government that will always stand up for working people.”

According to the consultation, the Warm Home Discount changes proposed could add £15 to the average annual dual fuel energy bill.

However, it’s argued that several other proposals under consultation would create savings on bills of “greater than £15”.

For example, Ofgem is currently consulting on a review of operational costs in the price cap, which could deliver £7 savings on bills. Further price cap savings would be available through better control of new and existing consumer debt.

DESNZ said: “The options under consideration could deliver meaningful savings for all billpayers by 2026/27, which could outweigh the impact of expanding the Warm Home Discount.”

Jonathan Brearley, CEO of Ofgem, said: “Energy debts that began during the energy crisis have reached record levels and, without intervention, will continue to grow. This puts families under huge stress and increases costs for all customers. We’re developing plans that could give households with unmanageable debt the clean slate they need to move forward.

“We welcome the Government’s support for these plans and their plans to expand the Warm Home Discount, which will also offer financial help to nearly three million more households that need it most.”