The Cosmic Watchdog

Nearly three million more households would be eligible for discounts on their energy bills next winter under new proposals.

The Government is consulting on offering more support to UK consumers facing an “unpredictable international energy market”.

According to the Department for Energy Security and Net Zero (DESNZ), the proposals, which include expanding the £150 Warm Home Discount scheme, would see one in five families in Britain receive financial help next winter.

This translates to around 2.7 million extra households, including nearly one million with children. This would bring the total number of eligible homes to an estimated 6.1 million.

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

The consultation is in response to the newly announced increase in energy bills, which will take effect on April 1. Regulator Ofgem has set the new energy price cap for April until July, hiking unit rates by 6.4%.

The upcoming price cap means the 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.

Find out how much your energy bill could increase by using our calculator. 

According to DESNZ, the increase in energy unit prices, which are set independently from the Government, 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.

“Alongside this, the way to deliver energy security and bring down bills for good is to deliver our mission to make Britain a clean energy superpower – with homegrown clean power that we in Britain control.”

The government will also work with Ofgem to speed up proposals for a possible debt relief scheme to target the “unsustainable debt built up during the energy crisis.”

DESNZ said: “The proposed debt support scheme, alongside the Warm Home Discount, is an important first step to cut the costs of servicing bad debt, which is currently contributing to higher bills for all billpayers.”

It said they aim to “reduce the debt allowance to pre-crisis levels” and that Ofgem has estimated the plans could lower these costs by £25 to £30 a year.

Jonathan Brearley, the watchdog’s chief executive, 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.”