Energy customers in Scotland claiming certain benefits may be able to get £150 deducted from their electricity bill this winter through the Warm Home Discount Scheme. The money is paid directly by the Department for Work and Pensions (DWP) to energy suppliers between October 2022 and March 2023.
While most households have already claimed their annual discount, many may be unaware that even though the annual heating scheme is open until the end of March, suppliers may stop accepting applications in Scotland if it has provided a certain minimum number of rebates, which is obligated to do so by the UK Government.
The change in eligibility rules this year means that people in Scotland may be part of the ‘Broader Group’ if they are on a low income in receipt of certain benefits including Universal Credit, Housing Benefit, Tax Credits and Income Support. Those who qualify will see the £150 discount applied to their energy bill by March 31, 2023.
However, SNP MP Dave Doogan, asked the Department for Business, Energy and Industrial Strategy (BEIS) earlier this week if “all eligible applications to the Warm Home Discount Scheme will receive funds or if the number of applications approved will be capped”.
In a written response on January 19, Energy Minister Graham Stuart MP said that it is at the “discretion of energy suppliers to determine how they run their applications” for the Broader Group and how many applicants will receive a rebate.
This response should be enough of a nudge to anyone who has yet to apply for the 2022/23 scheme to do so as soon as possible.
The UK Government does not yet have data on the number of households that have received funding so far this winter, but the combined spending target for the scheme year across Scotland, England and Wales is £523 million.
During winter 2021/22, 2.32 million households received a rebate through the scheme - a total spending of £359.4 million by the UK Government.
Mr Stuart responded: “As part of the Warm Home Discount scheme in Scotland, energy suppliers that offer a Broader Group scheme are obligated to provide a minimum number of rebates to meet their obligations.
“It is at the discretion of energy suppliers to determine how they run their applications for Broader Group rebates and how many applicants will receive a rebate.
“Suppliers may close their schemes for applications when they have met a minimum number.”
Do I qualify for the £150 Warm Home Discount?
Below is everything you need to know whether you live in Scotland, England or Wales.
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
You will receive a letter before 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. MoneySavingExprt.com has a handy guide to the qualifying criteria for each benefit which you can find here.
As already mentioned earlier in this article, the number of discounts suppliers can give is limited, so check with your supplier to see if you’re eligible and how to apply. Check with them even if you were eligible for the Warm Home Discount during winter 2021/22.
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’ opened 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.
You can read the full Warm Home Discount scheme guidance on GOV.UK here.
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