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What is The Government’s Warm Home Discount Scheme (WHD)?

Warm Home

What’s in this guide?

Introduction

You may have heard of the warm home discount scheme, particularly in energy companies faqs and government initiatives.

But what exactly is a warm home discount? Can you benefit from it?

Find out in this guide, which will tell you everything you need to know about the warm home discount, including if you are eligible and how to apply.

Let’s dive in and find out.

What is the warm home discount?

This is a payment of £140 to help people that may struggle with paying their energy bills.

It is a compulsory scheme for the broader energy companies; it is an annual amount they give to people who are eligible.

Energy suppliers with over 250,000 customers are legally obliged to offer this discount.

Some independent suppliers offer the discount, but unlike the bigger companies, it isn’t mandatory for them to provide it to their customers.

During the winter, some customers can benefit from the £140 discount, but you should also ensure that you are on the best energy deal for you and your home.

What suppliers offer the warm home discount?

The suppliers offering the WHD are:

  • British Gas
  • EDF Energy
  • Eon
  • Npower
  • OVO Energy
  • Scottish Gas
  • SSE
  • Scottish Power
  • Bulb

And many, many more.

Am I eligible?

Wondering if you are eligible for the warm home discount?

It applies to two main sections.

  • Guarantee Credit Element of Pension Credit
  • Customers in vulnerable situations or groups
  • Each supplier has its requirements
  • They also have some people that they need to help

Is the warm home discount only for older people?

The warm home discount to a broad group of people, not just those that are pensioners.

However, electricity and gas suppliers do have an amount of choice over who they count within that broader group and the number of people they can help, which is based on their share of the market.

Suppliers that are part of the initiative have had their requirements approved by Ofgem.

Customers that might be eligible could include people with:

  • Disability
  • Chronic illness
  • Young children
  • Receipt of specific benefits

Changes to the warm home discount

According to Which?, many smaller energy suppliers must start to pay the warm home discount to eligible customers who were announced by the government department BEIS.

Energy suppliers with 200,000 customers or more must pay the £140 to eligible consumers.

Energy suppliers with 250,000 customers or more must also pay the warm home discount.

The scheme is going to be reviewed again in 2021.

How do I apply?

If you are a customer that falls within the core group, Guarantee Credit Element of Pension Credit, this will be automatic.

You will get a letter of confirmation.

If you are interested in receiving this grant and you think you might be eligible, this is how you can apply.

Core group: Ring the Warm Home Discount team on 0345 603 9439.

Other group: Apply to your energy supplier.

What if I switch?

Unfortunately, if you decide to switch from a more prominent supplier to a smaller one, you may lose your discount.

However, it’s essential to take into consideration that if a smaller supplier offers you better costs for your energy, it could be more cost-effective for you to go with that supplier regardless of whether they provide the warm home discount or not.

Switching could save you more than £200 a year on your annual bill!

Other Help for Vulnerable Customers

If you aren’t eligible for the warm home discount scheme, there are other financial schemes that you can apply for.

Cold weather payment:

This is a government scheme that applies when the temperature drops below zero for a more extended amount of time.

Although this isn’t a payment that is given out very often, you should still keep it in mind if you need some extra help through the winter.

Winter fuel payment:

Similarly, you may also be eligible for the winter fuel payment. This is a tax-free payment of between £100 and £300 that again helps you with your energy costs in the winter, see whether you’re eligible and how much you could be saving.

Energy efficiency grants:

Energy efficiency grants include things like insulating your home for free, which can be a great way of saving money on your energy costs.

Using energy efficiency tips that energy suppliers provide can also help you to make smaller changes around your home to make savings that build up over time.

Conclusion

Are you eligible for the warm home discount?

Did you know that there are several ways you can save money on your energy?

Take a look at the EnergySeek guides to find out more about your energy, or see reviews of the top 7 energy switching sites to compare gas & electricity.