As many as half a million households could no longer be eligible for the “winter lifeline” Warm Home Discount as the eligibility rules change this year, charities have warned.
The Government is changing who will get the one-off payment – which has increased to £150 from £140 this year – and National Energy Action (NEA) and Scope, said that 500,000 households across England and Wales will now not get the discount because Disability Living Allowance and Personal Independence Payments are no longer qualifying benefits. However it will see 750,000 families receive the energy payment for the first time.
T he Warm Home Discount scheme is an initiative that gives low-income households a discount on their electricity bill as a one-off rebate administered by energy suppliers, between September and March. But changes this year mean that only those with high energy costs who claim a means-tested benefit - where your eligibility to claim (and how much money you then receive) depends on your income and savings - will be eligible.
Read more: How to tackle your supplier if you think your energy bill is too high
Some people claiming Disability Living Allowance (DLA), Personal Independence Payments (PIP) or Attendance Allowance (AA) will no longer be able to apply for the scheme, if their income is above a certain level, as these benefits are not means tested. However a report estimates that around 62% of PIP and DLA claimants would still be able to claim as they will fit the low-income criteria.
Everyone will receive a letter telling them that they will either receive the rebate automatically and therefore don't need to do anything, or that they may be eligible but need to call a dedicated helpline to provide further evidence of your eligibility. If you think you're eligible but haven't received a letter, you can also contact the helpline on 0800 731 0214.
Among the 2.8 million people who are eligible for the payment are pensioners who receive the Guarantee Credit element of Pension Credit and people on a low income who receive certain means-tested benefits and are in, or at risk of, fuel poverty. The second of these groups has been reassessed and was part of a Government consultation but charities said the results could leave thousands of people in serious difficulty.
NEA chief executive Adam Scorer said: “The Warm Home Discount is a winter lifeline. It is a vital part of the energy bill support schemes and yet over half a million low-income and vulnerable households who aren’t on benefits or who live in marginally smaller or newer homes will no longer receive the rebates. These households are likely to be either single people, single parents or disabled households. Removing a £150 rebate from these vulnerable groups is unwelcome and an unnecessary change to a vital programme – especially during an energy crisis.”
James Taylor, director of strategy at Scope, said: “It’s shameful the Government is taking away the Warm Home Discount from those who need it most. Life costs a lot more when you’re disabled. Scope is hearing from disabled people whose health will deteriorate if they can’t stay warm. People who are having to turn off fridges, and who are worried about how they will run vital equipment like breathing machines and powered wheelchairs. The Government needs to provide more direct financial support now, not less, so disabled people don’t freeze and starve this winter.”
Alongside a number of other charities, NEA and Scope warned that with average annual domestic energy bills at a record £2,500 – almost double the level of last year – the most vulnerable people in society are likely to struggle to live in a warm, safe home. NEA has calculated the number of UK households in fuel poverty to have reached 6.7 million, including more than three million households with disabilities or long-term health conditions.
Mr Scorer said: “People are planning for and relying on this support. They will be appalled that these changes are being made at this time. Some of the most vulnerable people in our society could be left out in the cold. Charities like our own shouldn’t be left to pick up the pieces, we are already seeing record numbers needing our help more than ever.”
A Department for Business, Energy and Industrial Strategy spokesman said: “We have introduced an unprecedented package of energy bills support for households, including a £400 discount through the Energy Bills Support Scheme and the Energy Price Guarantee which will save the typical household £700 this winter. This is on top of a range of additional support available to low-income households.
“On top of this, we are also prioritising households most in need this winter, with over three million homes across Great Britain receiving an additional £150 energy bill discount through the Warm Home Discount, which will mean an extra 780,000 pensioners and low-income families will benefit this year compared to last.”
Disability Rights UK boss Kamran Mallick reacted angrily when they news of the changes were announced.. “This is appalling," he said. "The Government knows full well that Disabled people face increased energy bills as a matter of course. Disabled people often need more hot water, more heating, and more energy to run specialist equipment than non-Disabled households. Removing this vital benefit beggars belief, especially with the universal increase in energy bills from April. With the changes not proposed until the end of the year, the Government must make a u-turn on this punitive decision. Far too many people are already having to choose between heating and eating. Benefits are nowhere near in line with inflation as it is. This move may push people over the edge.”
We have listed the winners and losers for the Warm Home Discount below:
Eligible for winter 2022/23
- Child tax credits and working tax credits
- Housing Benefit
- Income-related employment and support allowance
- Income-based jobseeker's allowance
- Income support
- Pension credit guarantee credit
- Pension credit savings credit
- Universal credit
No longer automatically eligible for winter 2022/23
- Attendance allowance
- Disability living allowance
- Personal independence payment
A spokesperson for the department for business, energy and industrial strategy said earlier this year: "Our reforms to the Warm Home Discount scheme will prioritise those households who are most likely to struggle to heat their homes. It is a fuel poverty scheme and we are increasing both the number and amount of fuel poor households that can benefit from it."
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