The initiative, which exists to help vulnerable and low income households with their energy costs, has now been expanded to everyone in receipt of Pension Credit Guarantee Credit, including those in receipt of Pension Credit Guarantee Credit with Savings Credit.
This means a total of 2 million people will receive the £140 subsidy, which is an increase of 200,000 on last year and around twice as many as when the scheme was first launched in 2011.
The scheme has also been extended to include “hundreds of thousands” of the poorest working age people.
Pensions minister Steve Webb said: “It is this coalition government’s mission to build a fairer society, and ensuring our poorest households get the support they need with their energy costs is a key part of that.
“As we approach winter, no-one should have to go without heating because they can’t afford the bills. That’s why we have significantly extended the Warm Home Discount scheme – and increased its value – to give people peace of mind that they can keep their homes comfortable throughout the coldest months.”
The funding comes from the participating energy suppliers which they pass on to all consumers through their energy bills.