Millions of households will see their energy bills cut by £150 this winter, the Government has announced. Over six million households will benefit from the Warm House Discount – an increase of 2.7 million households, including 900,000 more families with children and a total of 1.8 million households in fuel poverty.

Every billpayer on means-tested benefits will now qualify, removing restrictions that previously excluded people who needed help paying bills. Prime Minister Keir Starmer said: “I know families are still struggling with the cost of living, and I know the fear that comes with not being able to afford your next bill.

“Providing security and peace of mind for working people is deeply personal to me as Prime Minister and foundational for the Plan for Change. I have no doubt that, like rolling out free school meals, breakfast clubs and childcare support, extending this £150 energy bills support to millions more families will make a real difference.”

If someone is eligible for the discount, their electricity supplier will apply the discount automatically in the majority of cases. The money is not paid to consumers.

If the deduction does not happen, people should contact their energy supplier.

Bill payers living in England and Wales will qualify for the discount if they receive means-tested benefits, or are on a low income and have high energy costs.

Adam Scorer, National Energy Action chief executive, said: “It’s hugely positive that across Great Britain, all low-income households on means-tested benefits will get some direct support to tackle unaffordable bills and record energy debts this winter.”

He added: But the lifeline itself is frayed and far from sturdy.

“The rebate has only increased by a meagre £10 during a period in which energy bills have gone up by £500 a year and there is no clarity on the programme beyond the end of March next year.

“This announcement is good news for this winter, but the government needs to come up with a longer-term plan for providing deeper support in future for people who cannot afford a warm and healthy home.”

The number of families who will receive the discount for the first time include 100,000 in North East England, 280,000 in north West England and 270,000 in the West Midlands.

Meanwhile 110,000 families in Wales and 240,000 in Scotland will receive it this winter for the first time, the Government said.