Government to trumpet £500m bills aid from energy suppliers amid winter fuel row

Britain's biggest energy retailers have told ministers that they will provide more than £500m of extra help for households as the government tries to deflect criticism over the winter fuel payments row.

Sky News has learnt that EnergyUK, the industry body, is planning to make a joint announcement with the Department for Energy Security and Net Zero (DESNZ) in the coming days about an industry-wide package of support.

Sources said it could be unveiled by Rachel Reeves as part of her inaugural budget next week.

They added that the additional figure of over £500m would comprise both repayable and non-repayable measures, such as temporary payment holidays for consumers.

The package would cover the period between this month and next April, they said.

One insider said the announcement was partly aimed at defusing the row over the chancellor's decision to scrap the universal Winter Fuel Payment for pensioners.

The government and EnergyUK are not expected to break down the £500m-plus figure by supplier.

On Saturday, a government spokesperson said: "We will do everything possible to support vulnerable families this winter - including with the £150 Warm Home Discount, expected to support three million eligible households, and our drive to boost Pension Credit, which has already seen a 152% increase in claims.

"Minister [for energy consumers Miatta] Fahnbulleh has continued to meet with energy suppliers since August to agree a credible and robust plan with vulnerable people firmly at the centre.

"We look forward to providing further detail on this plan in due course."

EnergyUK did not respond to three emailed requests for comment.

(c) Sky News 2024: Government to trumpet £500m bills aid from energy suppliers amid winter fuel row