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Millions of families will receive the £150 Warm Home Discount every winter for the rest of the decade, the Government has announced.

The move comes amid the ongoing cost-of-living crisis, driven by soaring wholesale energy prices.

The average energy bill for a household in England, Wales and Scotland remaining on a standard variable tariff reached £1,758 a year this winter.

Regulator Ofgem said the latest 0.2% increase to the cap, which took effect on January 1, was being driven by the funding of nuclear power projects and discounts to some households’ winter bills.

The latest extension to the Warm Home Discount will see eligible households provided with the £150 rebate on their energy bills every winter until 2030/1.

It follows the Government’s expansion of the Warm Home Discount last year, adding 2.7 million families to the scheme and bringing the total number of eligible households to around six million.

All households in England and Wales who are receiving a qualifying means-tested benefit should get the discount automatically, as long as their supplier has more than 1,000 customers.

Those who have not received a letter or the discount but think they are eligible should also call 0800 030 9322 by February 27, the Department for Energy Security and Net Zero (DESNZ) said.

Separately, £150 is to be cut from the average household bill from April by scrapping the Energy Company Obligation (Eco) scheme.

Energy Secretary Ed Miliband said: “Tackling the affordability crisis is the Government’s number one priority.

“That is why we are today confirming to millions of eligible families across the country that they will receive the £150 Warm Home Discount every winter for the rest of the decade.

“That will give families much-needed peace of mind that they will continue to receive vital support, as we take action to bring down bills for good.”

Ned Hammond, deputy director of customer policy at Energy UK – which represents firms, said: “It’s very good news to see confirmation that the Warm Home Discount will be in place until the end of the decade which, particularly with the recent expansion, will provide continuing vital support with energy bills to millions of customers.

“We now look forward to working with the Government on further changes to the scheme, including better targeting and tiered support, to ensure that is both directed to those most in need and provides the right level of assistance to really make a difference for customers struggling to afford bills.”

Matt Copeland, head of policy and public affairs at National Energy Action, said: “The five-year continuation of the Warm Home Discount is welcome news for low-income households and provides support that extends beyond this parliament.

“It is also essential that support is continuing for energy advice and for measures that reach people who are not within the benefits system. Without this, many households who cannot be identified through government data matching will remain without the help they need.”