Almost 300,000 households who receive disability benefits will not get the Warm Home Discount to help them pay soaring energy bills this winter. They will miss out in a UK Government shake-up of the eligibility rules for the payment.
However, as the ChronicleLive reports, the UK Government says an extra 750,000 families will receive the energy payment for the first time. They have been given extra time to submit a claim for one of the benefits needed to qualify for the scheme.
The original deadline was the end of July. But the Government has extended it to August 21 - so there are two weeks left to apply for the relevant benefits.
The Warm Home Discount scheme currently pays £140 to vulnerable people to help towards their energy bills in the colder months. It's 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.
The Government has announced an increase in the Warm Home Discount payment from £140 to £150. And it says its review of the eligibility criteria will expand the pool of people able to claim to three million.
The changes 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. 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 will still be able to claim as they will fit the low-income criteria.
The news comes in wake of reports that the average household energy bill could soar by £1,645 within five months to hit £3,616, according to independent data analysts Cornwall Insight. The price cap is being reviewed again in October, and the analysts think it could rise by £1,388 to hit £3,359 in October - with a further rise of £257 to reach £3,616 in January 2023.
The Government says it plans to use a complex system of data matching to determine households who are living in fuel poverty and will direct support at them. They will no longer have to apply, as the payment will be made automatically, which will eliminate the "first come-first served" panic every year as the scheme opens.
Everyone will receive a letter from October 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 their eligibility. If you think you're eligible but don't receive the letter in October, you can also contact a helpline, which will be available on Gov.uk or via Citizens Advice.
Disabled charities reacted to the news of the removal of the payment from some disability benefit recipients when it was announced earlier this year. The charity Scope said: "This move is an insult to those disabled people who have already been cutting back for months. Amid the worst cost of living crisis in decades, it’s almost unfathomable.
“Life costs more if you’re disabled. Our energy helpline is now overwhelmed with calls from disabled people who are already facing sky-high energy bills, and do not know how they will afford to charge vital equipment, or stay warm, as the crisis goes on.”
So who is eligible for the Warm Home Discount and who will no longer qualify for winter 2022/23?
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 spokesman for the Department for Business, Energy and Industrial Strategy said: "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 the number of fuel-poor households that can benefit from it."
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