The Warm Home Discount scheme opened for applications on Monday 16 October 2023 for households that still need to apply to their energy supplier, as in Scotland, or prove their eligibility for the scheme1. The fuel poverty charity National Energy Action (NEA) used the opening date to urge vulnerable households not to miss out on the £150 rebate off their energy bills this winter1.
NEA said changes to the scheme last year meant around 500,000 people who were previously eligible could not access the £150 rebate directly off their bill, and that a further 300,000 households that were still theoretically eligible missed out because they were required to prove their eligibility and were left baffled by the complexity of the new scheme1. In total, it said, over 800,000 low-income vulnerable households missed out on the rebate last winter1.
The charity said the need to apply to a supplier in Scotland, or to prove you live in a "higher energy cost home" in England and Wales, is creating unnecessary complexity, and that differences between how the scheme operates in England and Wales compared with Scotland, and no coverage in Northern Ireland, add further complexity1. It said many households are asked to provide an Energy Performance Certificate, which can cost over £100 when the rebate is only worth £1501. Since 2017 the UK Government has been able to share data with energy suppliers to help provide the rebates automatically1.
"There were hopes that the Warm Home Discount would help all eligible households automatically. While this is the case for some households, the need to apply to your supplier in Scotland or prove you live in a 'higher energy cost home' in England and Wales is creating unnecessary complexity and an unfair postcode lottery."
NEA said the rebate has increased by only £10 in ten years, while energy bills are now £800 per year higher than at the start of the energy crisis1. It cited Ofgem's announcement that energy debt reached £2.6 billion, its highest ever level, due to a combination of rising wholesale energy prices, the energy crisis and wider cost-of-living pressures1. Polling for NEA by YouGov found a third of British adults expect to struggle to afford their heating bills this winter if the government does not offer financial help with energy bills1.
Why it matters for households
The £150 is taken off electricity bills rather than paid as cash, so it reduces what a household owes rather than what it receives. For homes that qualify automatically through data matching, no action is needed; for others, the rebate depends on an application to a supplier or on evidence of eligibility, which is where NEA says households have previously fallen out. The eligibility rules differ by nation, and Northern Ireland is not covered1. Where a home must demonstrate it is a higher energy cost home, an Energy Performance Certificate may be requested, and NEA notes that certificate can cost more than the rebate is worth1. The scheme sits alongside other support for the fabric and heating of a home, such as the Boiler Upgrade Scheme and the Great British Insulation Scheme, which address consumption rather than the bill itself.
What happens next
NEA said further reforms to the Warm Home Discount are very unlikely to be put in place in time to help people this winter1. It said it had joined over 140 other organisations in calling on the UK Government to provide further targeted support this winter and to consult on longer-term measures such as a social tariff, and that so far there has been no response1. It added that bills are likely to rise again in January1.