MSE News: Warm Home Discount to be extended to low-income families

whippetman_2

Sorry to reopen an old thread, but i believe it is an appropriate place to put this.

So, Just looking at my options to switch supplier. My current supplier, Scottish Power, have paid me a Warm Home Discount previously, although I have had to apply for it.

Looking at other suppliers, some sites state that the discount is paid by the supplier that you are with on the 12th July.

Does that mean if I change supplier now I won't be able to claim the WHD?

This is very confusing. Last year, when MSE launched the Cheap Energy Club I was going to switch however i found that it was too late to switch because of the cut off date for applications.

I need the WHD and am worried that if i change supplier at the wrong time i will be penalised.

Just done a comparison, current costs are estimated at £1404 per year, Less WHD.
I can stay with Scottich Power at £1114 Less WHD (£974), which in itself is a 'no brainer'.
However First Utility comes in at £982 (£842).

Obviously staying with SP removes any doubt about if i will get the WHD, but switching would save me even more, so what should I do?

Any advice and help, Especially from anyone who may work in these areas would be greatly appreciated. Also if I have been dumd and missed something obvious please forgive me.

Thanks

Matt

SwanJon

There are two ways to qualify for the WHD.
The 12 July date is for the Core group - these customers are identified centrally and your supplier on this date will pay you, even if you switch. (Think you need Pension credit to qualify for this, not been close for a few years).

The second group is at the discretion of the supplier and you need to apply for it. Historically you need to be with the supplier when they pay it - if you leave them before you won't get it, but you may be able to apply with your new supplier.

Speak to FU about their WHD policy, it is still early enough that they should be accepting applications, but they ay have different criteria to SP.

RubyDoobyDoo

I have been wondering about this too. I think that the big energy companies are using the warm home discount to effectively stop customers from leaving. I have applied for the discount as part of the non-core group (but I know that I do qualify for it). However, it clearly states in the conditions that I have to be a customer of Sainsbury's Energy (part of British Gas I then found out) until I get my warm home discount paid to me. Apparently this can be any time until next March! I just cannot see how they can justify making me wait seven to eight months for the discount once they have all my details and it's clear that I qualify. As soon as you receive your discount you are free to change supplier, hence them holding back I'm sure. I have already had a few "you've hit your target" emails from MSE Cheap Energy Club, but I feel held to ransom by Sainsbury's (British Gas). As my current tariff ends this October, I hope that I can then change to another of their cheaper tariffs at least, without it affecting my discount.

p.s. *YAAAAWN* @ those that just come onto threads like this to whine. I have worked, paid tax into the system, etc etc. You never know what another person's situation is.

Richie-from-the-Boro

I just cannot see how they can justify making me wait seven to eight months for the discount

I don't see why a discretionary freebie should be anything but discretionary. Arguing for a £140 backhander based on being paid but able to leave without paying into it is a stupid business model. The free money is for those in certified fuel poverty [core] the conditional [on the payout date] is for the broader group - anyone who does not want to live by the terms of the contract they knew about before they started is free to leave at any time. That's even handed, the issues of ' barriers to switching' and 'disincentives to switching' were discussed in the consultation process last year - the general consensus was that it was not a barrier to switching.

homeworkgirl

I have been told by EDF I can't claim on low income basis only but does anyone know if all the suppliers have the same criteria, that you must be on a benefit please?

redux

homeworkgirl wrote: »

I have been told by EDF I can't claim on low income basis only but does anyone know if all the suppliers have the same criteria, that you must be on a benefit please?

There is a so-called core group that qualify with all suppliers in the scheme, based mainly on being in receipt of certain benefits.

Then firms have discretion about adding other people outside that group, and the criteria for these vary between suppliers.

I looked on behalf of someone about a year ago, a pensioner with modest income but not in receipt of pension credit or other benefit, and found that staying with the existing supplier would qualify, but of adjacently priced rivals one had different criteria that would not include that person, and another firm wasn't in the scheme at all.

Note also that there are qualifying dates, which may not be the same for core and discretionary groups, and changing supplier might also make it too late to apply with the new one, as the discretionary group may operate on a first come first served basis.

lisa110rry

Redux, that was a nice thing to do, to enquire on behalf of a pensioner.

Richie-from-the-Boro

See here.

Core Group are households of less well-off pensioners - no need to apply the whole service is DWP automated.
Broader Group customers are fuel poor or in a group at risk of fuel poverty - you must apply to your provider.

Your chances of getting into the broader group with any new supplier this late in the cycle must be pretty low to zero because its first come first served supplier discretion, there is however no reason why you should not apply as soon as the next tranche of applications are invited.

Jurisdiction for the core group belongs to DWP who authorize the support in writing to (1) householder [brown envelope] and (2) supplier data transfer beginning at or around the middle of September each year so any core group entitled household would expect the 'brown envelope via snail mail' beginning this week. The reduction of this years £140 should appear in your electricity bill before the end of April 2016. On the letter from the DWP there is a reference number on the TLHS which begins with an M or a U. If the letter is M you don't need to do anything if the letter is U this means that the DWP aren't sure who your electricity supplier is. You’ll need to give the DWP a call [using the telephone number on the letter] and give them your electricity account number and Meter Point Administration Number [MPAN]. You'll find the information you need on your electricity bill, so have this handy when you call. But don’t delay, if you don’t call them by the date specified on your letter, you won't get your discount.

homeworkgirl,

does anyone know if all the suppliers have the same criteria

- yes most of them use precisely the same criteria for the broader group
- for the core group see the above

Best of luck.

homeworkgirl

Well having done some research I am swapping back to my old supplier as they are extending the payment to broader group of people than EDF. I have phoned the new company and have been assured that I can still apply for the payment so its worth looking around if you don't qualify with your current provider.:T

[Deleted User]

Hi,

the total gross household income limit for broader group 2015/16 is £16,190.

This will be based on financial year, April to April, but applications must be made usually before end of calendar year, maybe earlier with some companies.

What happens, if, after applying, come end of financial year household income has exceeded the allowance limit?

Thanks.