The Warm Home Discount scheme is a four-year scheme that runs from April 2011 to March 2015 to help low-income and vulnerable households with energy costs. The scheme will be worth up to £1.1bn over the next four years and we expect around 2 million low-income and vulnerable households will be assisted annually. The funding will come from the participating energy suppliers.
There are four elements to the scheme:
- Core Group: The Warm Home Discount scheme requires participating energy suppliers to give a discount on their electricity bill to a specified group of their older customers on low incomes, known as the Core Group. The Government has informed suppliers which households to support through sharing limited data between the Department for Work and Pensions (DWP) and the energy suppliers. Eligibility for 2012/13 is linked to being aged under 80 and receiving only the Guarantee Credit element of Pension Credit (no Savings Credit)or being aged 80 or over and are receiving the Guarantee Credit element of Pension Credit, (even if you get Savings Credit as well). You also need to meet the additional eligibility requirements set out below.
- Broader Group: support is being targeted at low income and vulnerable households who are fuel poor or in a fuel poverty risk group. Participating energy suppliers have discretion over the eligibility criteria for the Broader Group, but still need to target those in or at risk of fuel poverty and their criteria for this and the processes they will use to verify eligibility, will be subject to approval from Ofgem.
- Legacy Spend: energy suppliers can continue to provide support through discounted/social tariffs and rebates.
- Industry Initiatives: energy supplier-funded programmes and partnerships which assist those in or at risk of fuel poverty with a range of support, including benefit entitlement checks, debt advice and energy efficiency measures.
Who is eligible for the Core Group discount?
Eligibility for the Core Group is linked specifically to the type of benefits received. In winter 2012/13, you may qualify for this energy discount if on 21 July 2012 (the qualifying date) you are either:
- aged under 80 and receiving only the Guarantee Credit element of Pension Credit (no Savings Credit)
- aged 80 or over and are receiving the Guarantee Credit element of Pension Credit, (even if you get Savings Credit as well)
And both of the following apply:
- your electricity supplier is participating in the scheme
- you or your partner is named on your electricity bill
If you think you are eligible for this scheme, but have any concerns about being included, please email warmhomediscount@decc.gsi.gov.uk to find out more.
How do the electricity suppliers know who is in the Core Group?
The Department for Work and Pensions (DWP) and participating electricity suppliers have shared some limited information about their customers. This allows participating suppliers to give the discount automatically to customers who qualify.
When will I get my Core Group discount?
The next energy discounts will be made in winter 2012/13. If you qualify you’ll receive a confirmation letter from the Government in winter 2012/13.
If you qualify but a rebate can’t be made automatically, you’ll receive a letter asking you to provide further information that is available on your electricity bill.
Please note this scheme is now closed for winter 2011/12. Discounts for that year were £120.
Broader Group assistance for those not on Pension Credit Guarantee Credit only
The Government recognises that other groups such as low income families and those with long-term illnesses and disabilities may also need assistance with their energy costs.
As part of the Warm Home Discount Scheme, participating electricity suppliers have been asked to provide a set amount of support to a 'broader group' of their customers, which will also receive a discount of £130 in 2012/13.
More information on which suppliers currently have schemes running is available on the Broader Group Scheme web page.
Energy suppliers participating in the Warm Home Discount Scheme
The electricity suppliers involved in this scheme are:
- Atlantic
- British Gas
- EDF Energy
- E.ON
- Equipower
- Manweb
- M&S Energy
- npower
- Sainsbury's Energy
- Scottish Gas
- Scottish Hydro
- ScottishPower
- Southern Electric
- SSE
- Swalec
- Utility Warehouse