Warm home discount scheme to be expanded

The government’s warm home discount scheme could be extended to nearly 3m more households.

Energy regulator Ofgem has this week confirmed that a household using a typical amount of gas and electricity will see their annual bill go up by £9.25 a month - or £111 a year - in April.

The government is now consulting on making a further 2.7m extra households eligible for the £150 warm home discount next winter.

This would include almost 1m homes with children and take the overall number of homes getting the discount to 6.1m.

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.”

Debt relief scheme proposed

The government is also working with Ofgem on a new support scheme to help people who’ve built up “unsustainable” energy debt.

This, it said, is “an important first step to cut the costs of servicing bad debt, which is currently contributing to higher bills for all billpayers”.

Jonathan Brearley, chief executive of Ofgem, 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.”

He added that under the proposals currently being drawn up, households with “unmanageable debt” would get “the clean slate they need to move forward”.

What help can I get with energy costs?

If you’re struggling to keep up with your energy bills right now, then there are options available.

Firstly, speak to your supplier about any help they can provide, such as grants.

We can also help you check you’re claiming all the benefits you’re entitled to, offer budgeting tips and talk you through the range of debt solutions available. 

It’s also well worth reading our guide on what to do about energy arrears.