Financial boost confirmed for more households to start the new yearRachel Reeves

Rachel Reeves has confirmed cost of living savings.(Image: PA)

Millions of households are getting a cost-of-living boost worth hundreds of pounds.

The Warm Home Discount has been extended this winter to support more households.

The scheme knocks £150 off energy bills one time only, with more people eligible for the support this year.

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It means more cost of living support for more households this year.

Under new rules, everyone on Universal Credit will now qualify for the Warm Home Discount.

Labour has decided to to extend the scheme this winter so more families can benefit, as announced by Chancellor Rachel Reeves at the Budget.

Previously only some Universal Credit claimants qualified.

The £150 discount is issued either as credit on energy accounts or top-up vouchers – providing a crucial boost to households.

Energy companies decide when to apply it, and this can happen between November and March.

Low-income pensioners on the Guarantee Credit element of Pension Credit are also eligible.

British Gas said most of its customers should have had the the discount by now.

British Gas says: “If you qualify for the winter 2025/26 payment, you will have your one-off £150 discount applied between November 2025 – March 31, 2026 at the latest, with most customers receiving their WHD before January 2026.”

On top of this, Ms Reeves has also confirmed households across the UK will also be getting £150 off their bills on average from April.

The Government will be changing the way energy customers are charged, making it cheaper.

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