What is the Warm Home Discount Scheme?
The Warm Home Discount Scheme is a government initiative designed to provide financial assistance to eligible individuals, helping them with their energy costs during the winter months.
Those who qualify receive a one-off payment that is credited directly to their energy bills, reducing the financial burden during the colder season.
Read on to learn more about the discount and to check if you qualify.
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How much is the Warm Home Discount?
The Warm Home Discount is £150. This is a one-off payment designed to assist eligible individuals with their energy costs during the colder months.
The discount is not handed out to the recipient in cash or any other direct form. Instead, it is credited to their electricity bill, providing immediate relief on their energy expenses.
For those who have dual-fuel accounts, which means they receive both gas and electricity from the same supplier, there’s a possibility to apply the discount to the gas bill, offering flexibility in how the discount is utilised.
If an individual uses a prepayment meter for their electricity, the discount might be provided as a top-up voucher. This ensures that even those without traditional billing methods can benefit from the scheme.
It’s noteworthy that the Warm Home Discount has remained consistent at £150 in recent years. However, as with all government schemes, it’s prudent to stay updated on any potential changes or adjustments to the amount or eligibility criteria.
Am I eligible for the Warm Home Discount?
Eligibility for the Warm Home Discount is based on specific criteria set by the UK government.
Here’s a breakdown of the eligibility requirements:
- Core Group: If you receive the Guarantee Credit element of Pension Credit, you automatically qualify for the Warm Home Discount. This is often referred to as the “Core Group” of recipients.
- Broader Group: If you don’t receive the Guarantee Credit element of Pension Credit, you might still be eligible under the “Broader Group” criteria. This includes individuals on a low income with high energy costs or those receiving certain means-tested benefits or Tax Credits. Some of these benefits include Universal Credit, income-related Employment and Support Allowance, income-based Jobseekers Allowance, and Income Support.
- Energy Supplier Participation: It’s essential to note that your electricity supplier must be part of the Warm Home Discount scheme for you to receive the benefit. Most large energy suppliers participate, but if you’re with a smaller supplier, it’s worth checking their involvement.
- Automatic Payment: If you qualify based on the above criteria, you might receive the discount automatically without needing to apply. However, some individuals, especially those in the Broader Group, might need to apply each year.
For a comprehensive understanding of your eligibility and to check if you qualify, it’s recommended to visit the official GOV.UK website or contact your energy supplier directly.
When can I apply for the Warm Home Discount in 2023?
You can apply for the Warm Home Discount Scheme for 2023 starting from Monday, October 16.
If your electricity supplier is part of the Warm Home Discount scheme, you may not need to apply manually. Here’s why:
- Automatic Payment for Guarantee Credit Recipients: If you or your partner receive the Guarantee Credit portion of Pension Credit and one of you is named on the bill, the payment will be made automatically. There’s no need for you to apply.
- Other Qualifying Benefits: For those in receipt of another ‘qualifying benefit’ and deemed to have high energy costs, an automatic payment will also be made. Again, no application is necessary in such cases.
It’s essential to understand that receiving the Warm Home Discount does not impact your entitlement to other benefits like the Winter Fuel Payment or the Cold Weather Payment. These are separate schemes, and being a recipient of the Warm Home Discount won’t affect your eligibility for them.
How do I claim the Warm Home Discount?
For the majority of eligible households, the Warm Home Discount is applied automatically.
Here’s a step-by-step guide to understanding the process:
Notification Letter
If you meet the eligibility criteria, you will receive a letter between November and January. This letter serves as a notification about your qualification for the discount.
Automatic Application
Upon receiving the notification letter, there’s no action required on your part. Your electricity supplier will take care of the rest. They will automatically apply the £150 discount to your bill by the end of March.
Changes from Previous Years
It’s worth noting that the process has seen changes over the years. In the past, if you weren’t claiming the Guarantee Credit portion of Pension Credit, you had to actively claim the money from your supplier. However, this is no longer the case, making the process more streamlined for eligible recipients.
What If I Don’t Receive a Letter?
If, by mid-January, you haven’t received a notification letter but believe you’re eligible for the discount, don’t hesitate to act. You can contact the Warm Home Discount helpline at 0800 107 8002 for assistance. Remember, the deadline for the winter season is set for 29 February 2024.
You can also write to the Warm Home Discount team at the following address:
Warm Home Discount,
Blue Zone, Ground Floor Phase 1,
Peel Park,
Brunel Way,
Blackpool,
FY4 5ES.
Which energy suppliers participate in the Warm Home Discount scheme?
The following energy suppliers are participants in the Warm Home Discount scheme:
- 100Green: Formerly known as Green Energy UK or GEUK.
- Affect Energy: Now under Octopus Energy.
- Atlantic: Part of SSE Energy Services.
- Boost
- British Gas
- Bulb Energy: Now under Octopus Energy.
- Co-op Energy: Also under Octopus Energy.
- E: Also known as E (Gas and Electricity).
- Ecotricity
- E.ON Next
- EDF
- Good Energy
- London Power
- Octopus Energy
- Outfox the Market
- OVO
- Rebel Energy
- Sainsbury’s Energy
- Scottish Gas: Part of British Gas.
- Scottish Hydro: Under SSE Energy Services.
- ScottishPower
- Shell Energy Retail
- So Energy
- Southern Electric: Part of SSE Energy Services.
- SSE Energy Services
- Swalec: Under SSE Energy Services.
- Tomato Energy
- TruEnergy
- Utilita
- Utility Warehouse
It’s essential to note that if your electricity supplier stops trading, you might still be eligible for the Warm Home Discount. In such cases, Ofgem will appoint a new supplier for you, and you should check with this new supplier regarding your eligibility for the discount.
Do I need to switch energy suppliers?
No, you don’t necessarily need to switch energy suppliers to benefit from the Warm Home Discount.
However, if your current electricity supplier isn’t part of the scheme, you might consider switching to one that does participate.
Factors to Consider Before Switching
Potential Savings: While switching to a supplier that offers the Warm Home Discount might seem appealing, it’s essential to evaluate the overall cost. The deal you’re offered by the new supplier should be weighed against the benefits of the discount to ensure it’s financially beneficial.
Participation in the Scheme: Before making a switch, it’s crucial to verify that the new supplier participates in the Warm Home Discount scheme, especially if you currently benefit from it. Not all suppliers are part of the scheme, so always check in advance.
Current Benefits: If you’re already receiving the Warm Home Discount with your current supplier, remember that switching might mean you have to reapply or potentially lose the benefit, depending on the new supplier’s policies.
It’s always a good idea to do thorough research and possibly consult with energy comparison website such as Utility Saving Expert before deciding. Switching suppliers should be based on a comprehensive understanding of the potential savings, benefits, and any associated risks.
Chris Richards
Chris is a personal finance specialist who founded Council Tax Advisors in 2012, assisting over 250,000 people with their Council Tax debt. Observing that many clients overpaid on utilities, he launched Utility Saving Expert in 2014, an energy price comparison site. In 2016, the platform expanded its services to include consumer and business insurance comparisons. Utility Saving Expert stands out with its commitment to social responsibility, donating 10% of net profits to fuel poverty charities, underscoring its dedication to both client value and community support.