Millions of households are facing a challenging winter as the temperatures begin to drop and the daylight hours get shorter. Many people will be putting on an extra layer of clothing instead of central heating this year in an effort to keep energy bills down due to the rising cost of living.
The £2,500 Energy Price Guarantee will remain in place until 2024 and is expected to help households with average usage save around £1,000 per year, but if you use more then you’ll pay more and similarly, if you use less, you’ll pay less. The £400 energy rebate started this month, which will see £66 automatically discounted off electricity bills every month until March 2023.
There’s also the Warm Home Discount Scheme, administered by the Department for Work and Pensions (DWP), which opens in November and gives people 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.
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.
It’s there to provide support for those living 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, energy suppliers including British Gas, EDF, Scottish Power, SSE, E.on, Octopus, Shell and Utilita, fund it.
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.
How much is the Warm Home Discount Scheme?
If you qualify, you'll get £150 off your bills this winter.
The money is not paid to you - it’s a one-off discount on your electricity bill, between now and March 2023.
It’s worth noting that payments may be later this year due to administrative changes by DWP around eligibility as the rules on who qualifies are different and depend on where you live.
You might be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity and you’re eligible - contact your supplier to find out.
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.
Do I qualify for the £150 Warm Home Discount?
The eligibility requirements for the Warm Home Discount Scheme have changed this winter.
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
The scheme for both groups - core group and core group 1 - opens 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.
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.
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. Check with them even if you were eligible for the Warm Home Discount last year.
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’ opens 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.
Warm Home Discount for Park / mobile homes
You apply a different way if you live in a park home.
Applications for winter 2022 to 2023 opened in September.
The scheme is available for permanent residents living in a Park Home in Scotland, England or Wales who pay their electricity bills directly to their park site owner. Applications will be considered on a first come first serve basis.
Find out how to apply for the Park Homes Warm Home Discount here.
Participating suppliers
The dedicated page on GOV.UK will be updated soon with a list of current suppliers and just a reminder that energy customers in Scotland should check if their provider is participating in the scheme this month as some may open for applications early.
You can find out more on the GOV.UK website here.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook group here or subscribe to our newsletter which goes out three times each week - sign up here.
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