The vast majority of households would face higher energy bills under government plans to protect the least well-off from soaring gas prices.
Ministers are considering extending the warm homes discount, which gives 2.2 million of Britain’s poorest households £140 each towards the cost of energy bills over winter. The payments would be increased and eligibility for the scheme extended in an effort to limit the impact of rising gas prices.
However, industry sources have pointed out that the discount is funded by social levies which apply to all energy bills. Ofgem, the regulator, puts the cost at £14 per household.
A senior industry source said: “At a time when you’re already increasing everyone’s prices by £700, to add more on to pay for that —
