Warm Home Discount extension ‘won’t solve’ Britain’s energy bill problem, Tony Blair think tank claims

Around six million families across England and Wales now qualify for the scheme following last year’s expansion, which brought an additional 2.7 million households into eligibility.

The announcement comes as the cost-of-living crisis persists, with average annual energy bills for those on standard variable tariffs reaching £1,758 this winter.

GETTY

Recipients of qualifying means-tested benefits should receive the rebate automatically, provided their energy supplier serves more than 1,000 customers.

However, TBI’s senior energy policy advisor Tone Langengen, said: “Extending the Warm Home Discount will give real help to families struggling with high energy bills, and that’s welcome.

“But its success will depend on take-up. A simple, trusted one-stop shop that brings together advice, grants and installers would help give people clear, personalised support.

“But ultimately, discounts alone won’t fix the problem if bills keep rising in the first place. With public debt already high, spending has to focus on permanently lowering energy costs.”

She added: “The priority should be clear: cheaper power by 2030, net zero by 2050. If the transition cuts bills and drives growth, it will be fair and sustainable, if it doesn’t, households risk paying twice – through their taxes and their energy bills.”

The Department for Energy Security and Net Zero (DESNZ) has urged anyone who believes they qualify but has not received confirmation to contact 0800 030 9322 before February 26.

Ed Miliband, the Energy Secretary, described addressing the affordability crisis as the Government’s foremost concern.

“That is why we are today confirming to millions of eligible families across the country that they will receive the £150 Warm Home Discount every winter for the rest of the decade,” he stated.

Mr Miliband added that the commitment would provide “much-needed peace of mind” to families, assuring them of continued vital assistance as ministers work towards permanently reducing energy costs.

From April, households will also see a further £150 reduction in average bills following the decision to abolish the Energy Company Obligation (ECO) scheme.

The extension has been welcomed by industry representatives, with Ned Hammond, deputy director of customer policy at Energy UK, describing it as “very good news” for customers.

“We now look forward to working with the Government on further changes to the scheme, including better targeting and tiered support, to ensure that is both directed to those most in need and provides the right level of assistance to really make a difference for customers struggling to afford bills,” Mr Hammond said.

Energy UK, which represents energy companies, noted that the recent expansion combined with the decade-long guarantee would deliver crucial ongoing assistance to millions of bill payers.

Fuel poverty charity National Energy Action also praised the announcement, with head of policy and public affairs Matt Copeland calling the five-year continuation “welcome news for low-income households” that provides certainty extending beyond the current parliament.

However, Mr Copeland emphasised that ongoing support for energy advice and measures reaching people outside the benefits system remained essential.

“Without this, many households who cannot be identified through government data matching will remain without the help they need,” he warned.