Cost of scheme could add £15 to average household bills next winter
The UK government is proposing to expand the Warm Home Discount scheme, extending eligibility to an additional 570,000 London families, up from 380,000 currently. The £150 discount per household would be available to those receiving means-tested benefits, regardless of their heating bill size. The scheme's cost is expected to rise from £511 million to £800 million nationally, potentially adding £15 to the average household bill. This increase could be partially offset by reforms, such as changes to Ofgem's operational costs. The energy price cap is set to rise by 6.4% in April, increasing average bills by £111 annually. The government estimates one in five UK families would benefit from the expanded scheme. Energy Secretary Ed Miliband highlighted the proposal as positive for families, emphasizing long-term goals of achieving energy security and reducing bills through clean energy initiatives.
