Warm Home Discount Scheme 2022/23 – What you should know!

The Warm Home Discount requires energy suppliers to fund a £150 rebate for the Warm Home Discount Scheme 2022/23 to help low-income fuel-poor households with their energy bills.

The government has has made a series of reforms to extend the rebate to more households This article explains the changes being made and what you should know below.

What is the Warm Home Discount Scheme 2022/23?

The Warm Home Discount 2022/23 is a one-off £150 rebate payment by energy suppliers to eligible low-income and vulnerable households each winter. The scheme has been extended to reach an estimated 2.8m households helping an additional 750,000 households compared to last year.

What’s Changing With The Warm Home Discount For 2022/23?

• Increasing the value of the rebate to £150
• Different processes apply between England & Wales and Scotland.
  • No longer need to apply for the rebate in England & Wales, automatically determined between DWP & energy suppliers
  • New Core Group 2 replaces the Broader group for England/Wales which includes a new ‘High Energy Cost Criteria’ along with low income to qualify for the rebate
  • Housing Benefit is included in the qualifying benefits across the UK
• Lowered compulsory participation threshold from 150,000 to 50,000 customer accounts, allowing more energy suppliers to be part of the scheme.

When Does The Warm Home Discount Scheme For 2022/23 Open?

The scheme will open in November 2022 and run to March 2023 for those who were on one of the defined means-tested benefits on the qualifying date of August 21st, 2022 and a customer of one of the compulsory or voluntary energy suppliers part of the scheme.

Who is Eligible for Warm Home Discount Scheme 2022/23 ?

There are 3 qualifying groups for the discount depending on where you live.

Core Group /Core Group 1

• Your household is eligible if the bill payer or your partner receives the Guarantee Credit element of Pension Credit
• You do not need to apply, the DWP matches their records with your energy supplier and sends a letter to confirm you’ve been awarded the rebate automatically.

New Core Croup 2 (England/Wales only)

• A new Core Group 2 replaces the previous “Broader group” definition for England & Wales. A new high energy cost criteria has been added which uses your property characteristics (age, floor area, & property type) to determine whether you have high energy usage in addition to being low-income households. 
  • To qualify, you need to be on an eligible benefit and be defined as having high energy costs.
  • A challenge process will be created so that households can provide alternative evidence about energy costs to challenge decisions on rebates not being awarded through a helpline or online tool.

• Includes Housing benefit as a qualifying benefit for the first time but excludes disability benefits PIP/DLA/AA.  It’s estimated that 290,000 DLA/PIP are likely fewer recipients by removing the disability benefits eligibility.
• You don’t need to apply. It is awarded automatically & no longer on a first-come, first-serve basis. DWP will match households to energy suppliers

For those in Core Group 2, it is no longer on on a first come first serve basis & you no longer need to apply, you will receive it automatically or be asked for more information, or asked to contact Warm Home Discount helpline to verify you are eligible. 

Broader Group (Scotland Only)

• It will be similar to the scheme in 2021/22 with a Core group and Broader group requirement
• You need to APPLY – FIRST COME FIRST SERVE BASIS
• Benefit requirements defined by OFGEM extended to now include Housing benefit along with the other means-tested benefits
• Additional criteria can also be added by energy suppliers if approved by OFGEM. Check your energy supplier’s specific page for their requirements

What are the qualifying benefits required for Warm Home Discount Scheme 2022/23?

Is my Energy Supplier part of the Warm Home Discount Scheme 2022/23?

All energy suppliers with more than 50,000 customer accounts are part of the scheme. Some smaller companies have chosen to join and offer rebates to the Core Group voluntarily. Compulsory energy suppliers part of the Warm Home discount scheme 2022/23 include:-

• British Gas 
• Bulb Energy
• E (Gas and Electricity)
• E.ON
• Ecotricity
• EDF Energy
• ESB Energy
• Outfox the Market
• Good Energy
• Octopus Energy
• OVO Energy
• Scottish Power 
• Shell Energy 
• Utility Warehouse 
• Utilita

How Is The Warm Home Discount Scheme 2022/23 Paid?

It isn’t paid directly to you but to your account or against your bill.  It’s a rebate of £150 incl VAT (£142.5 +plus VAT) towards your electricity bill (or sometimes your gas bill if you’re a dual fuel customer) to help with your energy bills. 

The discount is credited directly to your account, bill, or automatically topped up on your prepayment meter or sent as a voucher to use by 31st March 2023.

You should get a letter from the Department of Work and Pensions and/or your energy supplier confirming that it’s being automatically applied to your account or that your application (Scotland Broader Group only) has been successful.

If you’re not notified before 31 December 2022, then call the Warm Home Discount helpline Telephone: 0800 731 0214 (Call at the beginning of December!)

What about Park or Mobile homes?

The scheme also includes mobile homes, but they have a different process. Applications haven’t opened yet, but you can register your interest via this website https://www.parkhomeswhd.com/

Conclusion

Energy suppliers offer other forms of help as part of a financial assistance programme. Participating energy suppliers can support households in fuel poverty through activities including providing debt write-off, installing energy efficiency measures and offering energy saving advice or providing rebates to certain
households. Refer to your energy supplier for further details.

For more information on the Warm Home Discount Scheme, refer to the latest guidance at Warm Home Discount Scheme – GOV.UK (Pls note the site hasn’t been updated to reflect the current year yet 2022/23).

If you’re a dementia caregiver, you can also read more about the different types of general financial help available to you here.