As millions of households across the UK face a stormy winter in terms of their finances, many will be sticking a jumper on rather than turning the heating up.
The £2,500 Energy Price Guarantee is set to remain in place until 2024, and will help people to save around £1,000 annually on their energy bills. The Daily Record reports that the £400 energy rebate began in October, which will see £66 deducted from energy bills each month until March 2023.
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There is also a Department for Work and Pensions (DWP) scheme, called the Warm Home Discount, which opens up next month. It is designed to give those on certain benefits £150 off their electricity bill.
The scheme has changed this year, so we’re taking a look at eligibility, who needs to apply and who will be paid automatically. Read on below for more information.
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. The scheme is designed to help provide support for those 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, certain energy suppliers fund it. These include:
- British Gas
- EDF
- Scottish Power
- SSE
- E.on
- Octopus Energy
- Shell
- Utilita
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.
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.
If you qualify, you'll get £150 off your energy bills this winter. The money is a one-off discount paid to your energy supplier to take off your bills, between now and March 2023.
Payments may also be later this year due to administrative changes by the DWP around eligibility, as it will depend on certain criteria. You may be able to get the discount off your gas bill, if your supplier provides you with both gas and electricity.
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.
Who will qualify for the scheme?
The eligibility requirements for the Warm Home Discount Scheme have changed this winter. 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. 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 part of the Scottish 'core group'. The scheme is set to open 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.
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 criteria
The means-tested benefits that qualify for this scheme include:
- 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.
Even if you got the discount last year, it is worth still contacting your energy supplier to check. If you are eligible, your electricity supplier will apply the discount to your bill by March 31, 2023.
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