A grant designed to help vulnerable families keep warm during the winter has been shaken up this year, with almost 300,000 disability benefit claimants no longer able to get the rebate automatically.
However, the Government says the change will mean an extra 750,000 struggling households will receive the Warm Homes Discount Scheme payment, which has been increased by £10 to £150 for winter 2022/3. This increase in eligibility is mainly down to a change which permits those claiming housing benefit to get the payment for the first time.
But people with disabilities who only claim personal independence payments, attendance allowance or disability living allowance, which are not means-tested, will no longer get the warm home discount automatically - affecting 290,000 existing claimants. To keep getting the rebate, you'll need to have high energy bills AND be eligible for one of the qualifying means-tested benefits. However, it is thought that around 62% of PIP and DLA claimants would still be able to claim as they will fit the low-income criteria.
The Warm Home Discount was introduced by the Government in April 2011 to help eligible families on low incomes or pensions with their energy bills during the winter. Although it's administered by the Government and Ofgem, it's paid for by energy suppliers, usually either as credit to customers' accounts, or for pay as you go customers, a voucher to top up their meter.
Payments usually run from October to the end of March. However, this year’s scheme has been delayed due to administration changes, so payments won't begin until November, although, according to Gov.uk, the deadline by which all payments will be made remains March 2023.
Up to now, unless you receive the guarantee credit element of pension credit, where you get the warm home discount automatically, you have had to apply to your supplier to receive the warm home discount, which would be distributed on a first come, first served basis with suppliers also able to set their own eligibility criteria for those on certain benefits.
Under the new rules, those in receipt of the guarantee credit element of pension credit will still be guaranteed the warm home discount. Everyone else will receive a letter from this month 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.
The Government is using 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 they payment will be made automatically, which will eliminate the 'first come-first served' panic every year as the scheme opens. 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 angrily when it was announced earlier this year.
Scope head of policy and campaigns 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 that the Government will cut support for rising energy bills from nearly 300,000 disabled people.
“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.”
Disability Rights UK boss Kamran Mallick said: “This is appalling. 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.”
The full list of who is eligible for the Warm Home Discount and who will no longer qualify for winter 2022/23 is listed 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: "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."
Now read:
- Shock energy bills leave families in 'complete panic' after new rates update causes glitch
- DWP announces cost of living boost for millions of poorer families this winter
- Benefits blow as thousands of PIP applications rejected by DWP
- Thousands more to get £400 energy rebate including tenants who pay all-inclusive bills
- How much it will cost to put your kettle on to boil from October 1
