Overview

• An extra 2.7 million households on means-tested benefits will automatically receive a £150 reduction on energy bills between October and March, raising total eligible homes to just over six million
• Pensioners with annual incomes under £35,000 will get winter fuel payments of £200 per household for those aged 66–79 and £300 where someone is 80 or older
• Ofgem has confirmed that the energy price cap will fall by about 7% in July, although typical annual bills will remain roughly £600 higher than in 2020
• The government says the expansion will be funded through new efficiency savings in the energy system, including a cut to the price cap’s operating cost allowance, while energy firms may recover costs via slightly higher standing charges
• Critics and opposition parties argue that a one-off £150 rebate is insufficient for many struggling families and call for longer-term solutions such as a social energy tariff or broader benefit reforms