In future, households with a band E energy performance rating will benefit as well as those in band F and G.
Where appropriate, insulation and heating system upgrades will be made available to eligible households.
Proposals for new regulations to bring in the new eligibility criteria will be laid before Parliament over the next few weeks.
Councils and housing associations across Scotland will also receive an extra £2.5 million this year to insulate cavity walls and lofts for tenants in social housing.
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Housing and Communities Minister Alex Neil said: "We want every family in Scotland to live in a house that is energy efficient, and doesn't cost a fortune to heat.
"Too many families are struggling with unaffordable fuel prices that can mean a choice between cooking the dinner and keeping the house warm.
"That's why we are extending the eligibility criteria for the Energy Assistance Package to deliver real help to families feeling the pinch of unrelenting fuel price hikes.
"The Package has helped thousands of households so far, but we want to make sure that everyone can keep their home warm during the winter, while ensuring they are doing their bit for the environment.
"We want anyone who is struggling with fuel bills to pick up the phone and call their local energy advisor."
Proposals for new regulations to bring in the new eligibility criteria for the Energy Assistance Package will be laid before Parliament over the next few weeks.
In addition, up to £2.5 million will be made available in 2009-10 to local authorities and Registered Social Landlords, through the Social Sector Stage 3 element of the package, to provide insulation measures to their own properties. This will bring this total investment this year to £5 million.
(CD/BMcC)
