An extra 70,000 low income and vulnerable households are to benefit from cheaper energy bills, DECC said.
That means two million struggling families, pensioners and other vulnerable people will get a £140 discount next winter as part of the Warm Home Discount scheme.
The initiative, which is being extended for another year, provides one-off rebates on the electricity bills of households in England, Scotland and Wales.
Energy Secretary Ed Davey said: “One family living in a cold home is one too many. That’s why this government is spending more than before to help over two million families and pensioners heat their homes for less.
“Money off bills is a start but we’re also driving bills down through more competition and making homes warmer through energy efficiency to bring energy bills down permanently.”