The number of households in Britain receiving £150 off their energy bills is set to double this winter, thanks to government changes to the Warm Home Discount eligibility criteria.

Under the revised rules, individuals receiving means-tested benefits will automatically qualify for the discount, regardless of their property size.

The funding for the discount may come from fees applied to all customer bills through the standing charge, unless suppliers identify option savings.

While debt charities and energy groups have generally welcomed the expansion,some express concern that the scheme still excludes vulnerable individuals on non-means-tested benefits.

Simon Francis from the End Fuel Poverty Coalition stated: “With bills still hundreds of pounds higher than in 2020, millions will continue to face unaffordable energy and cold, damp homes this winter.”

Energy companies are responsible for funding and distributing the £150 discount to eligible households in England, Scotland, and Wales, while the government establishes the eligibility requirements.

Previous regulations limited the discount to those receiving the guaranteed element of pension credit or those on means-tested benefits residing in homes with high energy performance scores.

The removal of property-related qualifications, such as size, type, and energy score, will extend the benefit to an additional 2.7 million homes this winter, including nearly one million families with children.

This expansion follows the government’s recent decision to reinstate the Winter Fuel Payment for the majority of pensioners.

The cost of expanding the Warm Home discount will be borne by energy companies and potentially passed on to consumers through the standing charge, which could lead to a slight increase in bills this autumn.

However, the government anticipates that savings achieved by reducing energy companies’ expenses and addressing problem debt will offset any potential rise.

Household energy bills subject to the energy price cap have decreased during the summer months, and standing charges have fallen in all areas due to restrictions on expenses that companies can pass on to consumers.

Though, current market forecasts suggest a potential increase in gas and electricity bills starting in October, driven by rising oil and gas prices.

Dhara Vyas, chief executive of Energy UK, representing energy suppliers, welcomed the proclamation and expressed hope for further support for those most in need “by accelerating progress on a new improved targeted support scheme”.

Earlier this month, Chancellor Rachel Reeves, during the spending Review, confirmed a £13.2 billion investment in the government’s Warm Homes Plan, aimed at improving energy efficiency and reducing heating costs for households.

“With bills still hundreds of pounds higher than in 2020, millions will continue to face unaffordable energy and cold, damp homes this winter.”

The government also announced plans to broaden automatic compensation schemes for energy customers.

The proposed changes aim to provide automatic compensation for consumers experiencing lengthy call waiting times when contacting their energy companies,as well as for customers receiving unexpectedly high bills due to companies failing to adjust direct debits.

The proposals also seek to shorten the timeframe for suppliers to respond to complaints.

Currently, energy suppliers have eight weeks to respond to a complaint.

If a customer does not receive a response within this timeframe,or if their issue remains unresolved,they must then contact the Energy Ombudsman for further investigation.

The proposed changes would reduce the response time to four weeks and automatically refer customers to the Ombudsman if they do not receive a response within that period.

households are already entitled to automatic compensation in certain situations, such as when a switch to a new supplier encounters problems.