The UK Government has issued an update on who will qualify for this year’s Warm Home Discount Scheme, following a change in the eligibility criteria and an increase of the payment from £140 to £150. The money is paid directly by the Department for Work and Pensions (DWP) to energy suppliers and deducted from electricity bills.
The additional help with heating bills will be a welcome relief to eligible households following the announcement that the UK Government’s £2,500 Energy Price Guarantee will end in April and not in 2024 as originally planned. However, the £400 energy rebate will continue until March, providing discounts of £66/£67 on electricity bills this winter.
Warm Home Discount rule changes mean that not everyone will receive the support automatically - especially if you live in Scotland. The Department for Business, Energy and Industrial Strategy confirmed on Thursday that letters of automatic participation in the scheme will only be sent out to eligible Scottish households who are in receipt of Pension Credit Guarantee Credit - low-income households will need to check if they qualify directly with their energy supplier.
Energy Minister Graham Stuart MP, said: “From this winter, the Government will reform the Warm Home Discount scheme in England and Wales. The Government is writing to households who are eligible to receive a rebate automatically, as well as households who need to call a helpline to determine if they are eligible.
“There will be an online eligibility checker to help people understand if they may be eligible, and the Government is sharing information on the new scheme with energy suppliers and charities.
“There is a separate Warm Home Discount scheme in Scotland. The Government will write to eligible households who are in receipt of Pension Credit Guarantee Credit, while other low-income households should check with their energy supplier how they may apply.”
What is the Warm Home Discount Scheme?
The Warm Home Discount was introduced by the UK Government in 2011 to help eligible customers in Scotland, England and Wales with their energy bills during the winter.
It’s there to provide support for those living on low incomes or people of State Pension age.
While the UK Government and Ofgem, the energy regulator, make decisions on which households qualify and how much you will get, energy suppliers including British Gas, EDF, Scottish Power, SSE, E.on, Octopus, Shell and Utilita, fund it.
The guidance on GOV.UK states that the scheme officially opens in November, which means the participating list of suppliers has not been updated yet. However, most providers will have a dedicated page on their website offering updates on when they will be making payments this winter.
Reminder: Energy customers in Scotland are urged to check if their provider is participating in the scheme this month as some may open for applications early.
GOV.UK has direct links to the dedicated Warm Home Discount page of every energy provider for quick access here.
How much is the Warm Home Discount Scheme?
If you qualify, you'll get £150 off your bills this winter.
The money is not paid to you - it’s a one-off discount on your electricity bill, between now and March 2023.
It’s worth noting that payments may be later this year due to administrative changes by DWP around eligibility as the rules on who qualifies are different and depend on where you live.
You might be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity and you’re eligible - contact your supplier to find out.
If you’re a credit customer it will be added to your electricity account and if you’re on Pay As You Go/Prepayment, you’ll be sent a voucher that you can use to top-up your meter.
Do I qualify for the £150 Warm Home Discount?
The eligibility requirements for the Warm Home Discount Scheme have changed this winter.
People living in Scotland
If you live in Scotland, you qualify if you either:
- get the Guarantee Credit element of Pension Credit - known as the ‘core group’
- are on a low income and meet your energy supplier’s criteria for the scheme - known as the ‘broader group’
How you apply for the Warm Home Discount Scheme depends on how you qualify for the discount.
People living in England and Wales
If you live in England and Wales, you qualify if you either:
- get the Guarantee Credit element of Pension Credit - known as ‘core group 1’
- are on a low income and have high energy costs - known as ‘core group 2’
In both eligibility groups, DWP will make an assessment of your energy costs based on the property you live in. They will then write to you and confirm if you are eligible from November.
If you get the Guarantee Credit element of Pension Credit
You qualify for the Warm Home Discount if on August 21, 2022 all of the following applied:
- your energy supplier is part of the scheme
- your name (or your partner’s) is on the bill
- you or your partner are getting the Guarantee Credit element of Pension Credit (even if you get Savings Credit as well)
This is known as being in the ‘core group’ in Scotland and being in the ‘core group 1’ in England and Wales.
How to get the £150 discount
The scheme for both groups - core group and core group 1 - opens on November 14, 2022.
You will receive a letter between November 2022 and January 2023 telling you about the discount if you’re eligible.
Most eligible households will receive an automatic discount, but some may have to apply - check with your supplier.
Your letter will say if you need to call a helpline by February 28, 2023 to confirm your details.
If you’re eligible, your electricity supplier will apply the discount to your bill by March 31, 2023.
Scotland - if you’re on a low income (broader group)
If you do not get the Guarantee Credit element of Pension Credit you may be able to apply directly to your electricity supplier.
All the following must apply:
- your energy supplier is part of the scheme
- you (or your partner) get certain means-tested benefits or tax credits
- your name (or your partner’s) is on the bill
DWP advises that your supplier may have additional criteria so you need to check with them if you’re eligible.
Qualifying benefits - Scotland
The qualifying means-tested benefits are:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Income Support
- the ‘Savings Credit’ part of Pension Credit
- Universal Credit
- Child Tax Credit
- Working Tax Credit
In Scotland, your electricity supplier decides who can get the discount.
The number of discounts suppliers can give is limited, so check with your supplier as early as possible to see if you’re eligible and how to apply. Check with them even if you were eligible for the Warm Home Discount last year.
If you are eligible, your electricity supplier will apply the discount to your bill by March 31, 2023.
England and Wales - if you’re on a low income (core group 2)
If you do not get the Guarantee Credit element of Pension Credit, you may still be eligible if on August 21, 2022 all of the following apply:
- your energy supplier is part of the scheme
- you (or your partner) get certain means-tested benefits or tax credits
- your property has a high energy cost score based on its characteristics
- your name (or your partner’s) is on the bill
This is known as being in the ‘core group 2’.
Qualifying benefits England and Wales
The qualifying means-tested benefits are:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Income Support
- the ‘Savings Credit’ part of Pension Credit
- Universal Credit
- Child Tax Credit
- Working Tax Credit
The scheme for ‘core group 2’ opens on November 14, 2022. You will receive a letter between November 2022 and January 2023 telling you about the discount if you’re eligible.
If you’re eligible, your electricity supplier will apply the discount to your bill by March 31, 2023.
Warm Home Discount for Park / mobile homes
You apply a different way if you live in a park home.
Applications for winter 2022 to 2023 opened in September.
The scheme is available for permanent residents living in a Park Home in Scotland, England or Wales who pay their electricity bills directly to their park site owner. Applications will be considered on a first come first serve basis.
Find out how to apply for the Park Homes Warm Home Discount here.
Participating suppliers
The dedicated page on GOV.UK will be updated soon with a list of current suppliers and just a reminder that energy customers in Scotland should check if their provider is participating in the scheme this month as some may open for applications early.
You can find out more on the GOV.UK website here.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook group here or subscribe to our newsletter which goes out three times each week - sign up here.
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