MILLIONS more households are set to benefit from a £150 cost-of-living benefit this winter.
An additional 2.7 million households will now be eligible for the subsidy, which will apply to every billpayer on means-tested benefits.
It will take the total number of claimants to more than six million.
The expansion is the latest in a series of cost-of-living measures Sir Keir Starmer hopes will placate Labour rebels furious at welfare cuts.
The PM 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.
“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.”
The new expansion to the cost-of-living measures will see 900,000 families with children and a total of 1.8 million households in fuel poverty benefit this year.
The Government has said the expansion of the Warm Homes Discount means families will be able to plan for winter knowing they will be offered support.
The government has also frozen fuel duty and are increasing the minimum wage.
Bill payers living in England and Wales will qualify for the discount if they receive means-tested benefits.
Following Rachel Reeves’ u-turn on the Winter Fuel Allowance last week everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment this year.
The move comes after the chancellors disastrous attempt to axe the universal Winter Fuel Payment in July last year just weeks after entering office.
But fears have been raised immediately by economists that taxes will have to rise to pay for the winter fuel u-turn.
The Treasury say there will be no permanent additional borrowing to pay for the move.
A total of nine million pensioners are set to benefit from the payment this year.
The Government plans to offset the expansion of the Warm Homes Discount with new efficiency savings across the energy system.
Energy Secretary Ed Miliband said: “Millions of families will get vital support with the cost of living this coming winter, demonstrating this government’s commitment to put money in people’s pockets through our Plan for Change.”
Part of the Plan for Change, the government hopes the expansion of the Warm Homes Discount will help to combat the cost-of-living crisis and directly benefit working families.
The Government has estimated that 100,000 families in North East England, 280,000 in north West England and 270,000 in the West Midlands will receive the benefit for the first time.
Meanwhile 110,000 families in Wales and 240,000 in Scotland will receive it this winter for the first time.
What is the Winter Fuel Payment?
Consumer reporter Sam Walker explains all you need to know about the payment.
The Winter Fuel Payment is an annual tax-free benefit designed to help cover the cost of heating through the colder months.
Most who are eligible receive the payment automatically.
Those who qualify are usually told via a letter sent in October or November each year.
If you do meet the criteria but don’t automatically get the Winter Fuel Payment, you will have to apply on the government’s website.
You’ll qualify for a Winter Fuel Payment this winter if:
- you were born on or before September 23, 1958
- you lived in the UK for at least one day during the week of September 16 to 22, 2024, known as the “qualifying week”
- you receive Pension Credit, Universal Credit, ESA, JSA, Income Support, Child Tax Credit or Working Tax Credit
If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:
- you live in Switzerland or a EEA country
- you have a “genuine and sufficient” link with the UK social security system, such as having lived or worked in the UK and having a family in the UK
But there are exclusions – you can’t get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain.
This is because the average winter temperature is higher than the warmest region of the UK.
You will also not qualify if you:
- are in hospital getting free treatment for more than a year
- need permission to enter the UK and your granted leave states that you can not claim public funds
- were in prison for the whole “qualifying week”
- lived in a care home for the whole time between 26 June to 24 September 2023, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance
Payments are usually made between November and December, with some made up until the end of January the following year.