Warm Home Discount

[Amber]

Warm Home Discount 2022

Due to increasing confusion about the new £150 Warm Home Discount Scheme I have created the below (from information in the new guidance) to try and explain how the new scheme will work, please read all the below before asking any questions. Thank you.

For those already familiar with WHD, the main changes for 2022/23 are:

1. the number of suppliers participating in the scheme will increase

2. Core Group 2 will replace the broader group which previously existed and required you to apply so now
no-one will need to apply, instead a new data matching system will be used to assess eligibility, and where eligible, payments will be made automatically, these payments will be £150

3. Even where a supplier does not meet the min. Number of customers figure to have to join the scheme (eg 50,000 customer in 2022/23) they can become ‘voluntary suppliers’. Any voluntary suppliers should deliver both Core Group 1 and Core Group 2 service.

What is Core Group 1?

Consumers are eligible for Core Group 1 if on the qualifying date (eg usually in July) the consumer meets all three of the following eligibility:

1 they receive the Guarantee Credit element of Pension Credit,

2. their electricity supply is with a compulsory or voluntary supplier. The list should be released each year, for which you can check if your supplier is listed.

3. the energy bill is in your name, or your partner’s name

The qualifying date will be updated on the government website each scheme year, historically it is usually around the first Monday of July.

The one–off payment is for £150, is automatic and is usually in the form of a credit to your electricity supply account.

If you are eligible, but you cannot be matched with a participating supplier you should receive a letter explaining this. Consumers can then contact the helpline on Telephone: 0800 731 0214 (Mon-Fri 8AM to 6PM) to confirm their supplier details. If you do not receive a letter and you think you are eligible but not with a matched supplier you can contact the helpline or write to Warm Home Discount, Blue Zone, Ground Floor Phase 1, Peel Park, Brunel Way, Blackpool. FY4 5ES.

Core Group 2

Core Group 2 has replaced the previous “broader group.” This is the biggest change which is causing the most confusion amongst members.

Previously customers were given the one-off WHD payment if they had a low income, were on certain means tested benefits (or didn’t exceed a household income threshold) and met additional criteria set by the supplier. Customers were not guaranteed the WHD on the border group scheme and had to make an application - which was decided on a first come first serve basis.

Now you should be eligible for Core Group 2 if on the qualifying date (historically in July) you meet all three of the following eligibility, you should not need to apply:

1. You, or your partner have a low income (see below)

2. You or your partner have high energy costs (see below) and

3. The electricity supply is with a compulsory or voluntary supplier - the list of energy suppliers participating in the scheme is updated every year and released online.

The qualifying date will be updated on the government website each scheme year, historically it was around the first Monday in July but check the website to see.

The single payment of £150 should be automatic and are usually made to the electricity account. This is usually done through crediting the account or directly applying credit to a prepayment meter. If this doesn’t happen you should contact the helpline as above.

1. What does it mean to have a Low income for the purpose of the scheme?

You have a low income if you, or your partner, receive one or more of the following benefits:

- Income related Employment and Support Allowance
- Income based Jobseeker’s Allowance
- Income Support
- Universal Credit
- Housing benefit
- Child Tax Credits and Working Tax Credits and have a household income which doesn’t exceed a set threshold
- Pension Credit Savings Credit — remember if you receive Pension Credit Guarantee Credit you will be placed in Core Group 1 and not Core Group 2

2. What does it mean to have high energy costs for the purpose of the scheme?

The government will set a threshold to determine whether a property has high energy costs. It is NOT based on your energy bills, but on whether your property is likely to have high energy costs due to the property type.

Whether a property falls into this threshold will be established using property data held by the Valuation Office Agency (VOA). The VOA is the agency that values properties for Council Tax.

The property data included in the formula includes the following considerations:

(A) floor area
(B) property age
(C) property type

If you are a low income household (as above) and you are considered as having have high energy costs (as above) and your electricity supply is with a compulsory or voluntary supplier you should be be eligible for a one-off automatic payment under Core Group 2.

What happens if the VOA doesn’t hold details for your property?

If the VOA doesn’t have property details they can use alternative evidence. This can include:

(A) calculations from neighbouring properties
(B) Energy Performance Certificates (EPC)
(C) information from the Land Registry and Office for National Statistics

Where they use alternative evidence eg the VOA doesn’t hold data for your property, the Department for Work and Pensions (DWP) should send you a letter. This is expected to only be in a small number of cases.

The letter will either:

(A) state that you are eligible for WHD or
(B) explain if the alternative evidence used puts you below the threshold eg if you have high energy costs for the purpose of the scheme, if you disagree about the threshold you can call the helpline (as above) to provide alternative evidence and challenge the decision.

Alternative evidence includes data from Energy Performance Certificates, where they exist, and Land Registry data. If you don’t already have these, there will be a cost. You should call the helpline (as above) and get advice otherwise you could be out of pocket.

If the DWP can’t match you with a participating supplier, they should write to you. They should ask you to contact the helpline and confirm who your supplier is to confirm whether or not you qualify.