Tens of thousands of vulnerable people are likely to be missing out on £150 worth of support for their energy bills, according to fuel poverty charity National Energy Action and Money Saving Expert Martin Lewis.
This is the first winter of the new eligibility criteria for the Warm Home Discount scheme, and while those on the guaranteed element of pension credit will continue to get the payment automatically, others on a low income also now need to have 'high energy costs' to qualify for the state-backed initiative funded by energy suppliers.
This means many who qualified last winter will not get the money this year, and Martin Lewis reckons even some who likely should be being paid under the new criteria are finding it tough to secure the payment.
Read more: Charities fear for 500,000 households who will no longer get Warm Home Discount
The Government's shake-up of the scheme was controversial when it was first announced, as it excludes those on non-means-tested disability benefits. Fuel poverty charity National Energy Action estimates "thousands, if not tens of thousands" of people are impacted.
The £150, which is paid to households on certain benefits between October 2022 and March 2023, used to be paid on a first-come, first-served basis, leading to a scramble every year when the scheme opened. This year, payments should have been made automatically to those eligible. All letters should have been sent out by now, but you can also check if you're eligible by using the Government's online eligibility checker. The deadline to claim, or to challenge a claim, for this winter is Tuesday February, 28.
The new criteria relies on data from the valuation office agency (VOA) to determine the size, age and type of home you live in and uses an algorithm to determine how much you might pay for your energy, rather than assessing your bills or how much energy you actually use.
Angry people have taken to Twitter to complain about the new system.
@MePeterNicholls said: "I had no idea that your property was assessed as well. I just went online and despite being ‘severely disabled’ according to assessments and benefits, I do not qualify for the new Warm Home Discount for first time in seven years. Wtf I’m sooooooo angry now," while @AntaresRouge said: "During a #CostOfLivingCrises the #WarmHomeDiscount qualifying criteria has changed. So Despite nothing changing medically for thousands of us, we are no longer entitled to WHD. The Tories do really hate us disabled folk."
@ShirleyBoyt said: "Vulnerable people are being told they are no longer eligible for the Warm Home Discount. The changes to the eligibility criteria are flawed; an urgent review is required," and @randomhilly said: "First year I don't get the Warm Home Discount. Not because my health is better or I'm not chronically ill and housebound with huge heating costs due to disability but due to the rented house I live in?? They give you £400 & take it away again. Why am I surprised!!"
Martin Lewis said: "The new system of Warm Home Discount high energy use assessments has left some out in the cold. It seems to be a blunt instrument, which may work to keep administration costs down, but has led to edge cases likely unintentionally missing out, and provision is needed to help financially vulnerable people who are falling into these cracks."
Mr Lewis said that the Government should introduce more discretionary guidance for energy firms and scrap the requirement for EPC ratings for those homes which don't already have one. He has contacted energy minister Grant Shapps, who he said had pledged to investigate missing payments and complaints. Last year the Department of Work and Pensions (DWP) said around 850,000 people were missing out on the discount even though they qualify.
Money Saving Expert said it feared people were slipping through the cracks due to a combination of factors including some mistakenly being told they had 'low energy use' and didn't qualify, or a lack of data such as missing Energy Performance Certificate (EPC) ratings for some homes.
A UK Government spokesman said: "This is the first year of significant reforms to the warm home discount. As discussed with Martin Lewis, the energy secretary will consider whether there are improvements that can be made to the operation of the scheme ahead of next winter.
“Changes to the warm home discount scheme last spring standardised the eligibility criteria across all suppliers and customers in England and Wales, meaning an extra 800,000 pensioners and low-income families will benefit this year compared to last."
Issues which have been identified by MSE include:
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High energy usage isn't assessed using bills or energy efficiency – leaving some saying they've been incorrectly told they have 'low energy use'. The data from the Valuation Office Agency (VOA) doesn't take into account the condition or energy efficiency of homes, or the amount people are paying to heat their homes. People living in newer, smaller homes are less likely to receive the discount.
- Where VOA data on your home is missing, you might be asked to provide an EPC, but some don't have these. VOA data can be missing because it may not have been properly recorded or updated. A legal requirement to provide EPCs only came into force on properties purchased after 1 October 2008, so those who bought a home before then might not have one. For those who have been renting for a long time or who live in social housing, there is no obligation for the landlord or council to provide an EPC. To get an EPC costs between £60 to £120, making it a costly way to get the £150 Warm Home Discount.
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