Will the new things announced today to help the disabled be taxable

London_1

I saw today about the new things Mr Rishi has announce to help the disabled and elderly pay for their heating bills will be coming in September and the autumn I wonder if it will be taxable as I get pension credit as I am on a low state income and disability money as well,. So I'm wondering if  as when the PC is added to my main state income it then pushes me into paying income tax whether the new amount due to be paid will also be taxed ? just a thought

Spoonie_Turtle

No they won't.

https://www.gov.uk/government/publications/cost-of-living-support/cost-of-living-support-factsheet-26-may-2022

For those on means-tested benefits:
"This payment will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards."

Pensioners:
"The Winter Fuel Payment (including the extra Pensioner Cost of Living Payment) is not taxable and does not affect eligibility for other benefits."

Disability payment:
"These payments will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards."

London_1

thank you for the answer was a bit worried xx

Spoonie_Turtle

That's understandable

[Deleted User]

Spoonie_Turtle said:

That's understandable

That link is really helpful, thanks Spoonie Turtle and thank you for asking, London_1.   I was grateful to have received  the Broader Group Warm Home Discount last winter - eligible as I receive DLA, on low income but not eligible for any means tested benefits.

When I heard that I would not be eligible to apply for The Broader Group Warm Home Discount this year, as I understand that DLA has been removed from the criteria, I was quite concerned.  The payments announced by The Chancellor yesterday will be a good help and will certainly take some of the pressure off.

I am grateful for the help. Thank you again as the link makes it easy to understand.

Crimson

London_1

will this mean that those on pension credit and DLA will still have to apply for the broader group as my income comes under that as its well under £16k a year as I get pension credit plus DLa Middle and higher allowance for my disability ? or will I still have to aplly in October as usual 
JackieO x

[Deleted User]

Yes, JackieO, if eligible, I think we will have to apply for the broader group, as before.  I contacted my energy supplier (in Scotland) and the 'system' or criteria for the broader group is not yet known for Scotland. It sounded likely that people in our group (in Scotland) may not be eligible this year.

Although I'm trying to be optimistic it does not sound hopeful

I'm not sure if any announcement has been made for England and Wales yet. If you hear anything please let us know.

Spoonie_Turtle

London_1 said:

will this mean that those on pension credit and DLA will still have to apply for the broader group as my income comes under that as its well under £16k a year as I get pension credit plus DLa Middle and higher allowance for my disability ? or will I still have to aplly in October as usual 
JackieO x

Assuming by 'broader group' you are referring to the Warm Home Discount, if your Pension Credit is Guarantee Credit element, you will be in Core Group 1 and receive it automatically.

If your Pension Credit is the Savings Credit element, you may or may not get it - for England and Wales there is no applying for it as it's now been changed.

The broader group has been replaced with Core Group 2, people with 'low income high energy costs'.  Low income determined by claiming a means-tested benefit (such as PCSC, UC, etc.) and high energy costs determined by the property in which you live.  They will work that out based on property age (as a proxy for how likely it is to be energy efficient / well insulated or not), property type (flat/terrace/detached/etc.), and size (floor area).

At the moment nobody knows which properties are deemed as being 'high cost' until they actually run the calculations this year and then decide a threshold.  People who qualify will get it automatically, so nobody eligible will miss out whereas in previous years many eligible people did miss out because they either didn't apply, or applied too late.  But disability benefits and an absolute income threshold no longer are qualifying factors, only entitlement to means-tested benefits.

For Scotland, it appears the scheme will still be broadly in line with the scheme that was across Britain in previous years.  (I haven't read the consultation response though so can't really say any more about it.)
https://www.ofgem.gov.uk/environmental-and-social-schemes/warm-home-discount-whd

Full details for England and Wales: https://www.gov.uk/government/consultations/warm-home-discount-better-targeted-support-from-2022
And for Scotland: https://www.gov.uk/government/consultations/warm-home-discount-scotland

poppy12345

London_1 said:

will this mean that those on pension credit and DLA will still have to apply for the broader group as my income comes under that as its well under £16k a year as I get pension credit plus DLa Middle and higher allowance for my disability ? or will I still have to aplly in October as usual 
JackieO x

The Warm Home discount has changed this year and it will now be £150. For those claiming pension credit as previous years you will not have to apply because it will automatically be added to your energy account.

Deleted_User said:

Yes, JackieO, if eligible, I think we will have to apply for the broader group, as before.  I contacted my energy supplier (in Scotland) and the 'system' or criteria for the broader group is not yet known for Scotland. It sounded likely that people in our group (in Scotland) may not be eligible this year.

Although I'm trying to be optimistic it does not sound hopeful

I'm not sure if any announcement has been made for England and Wales yet. If you hear anything please let us know.

For those not claiming Pension Credit they must be in receipt of a qualifying means tested benefit such as tax credits, housing benefit, Universal Credit, Income Related ESA/JSA/Income Support. Those that just claim a disability benefit will no longer qualify. (This may have qualified them in previous years)

If you claim one of these, the government will assess your energy costs based on the type, age and size of your property. If you think the assessment is inaccurate, you can challenge it.

You do not need to claim it as it will automatically be added to energy accounts for those that qualify. https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/warm-home-discount/

[Deleted User]

Thank you for these helpful replies, and for the Ofgem links.  I'm sorry my information was inaccurate.

I hope everything goes well for you, JackieO, and you receive the Discount without having to apply. 

If I hear anything from my energy supplier (in the Scottish System) I'll let you know.

It is a worrying time for most of us just now.  

Spoonie_Turtle

I've had a quick read of some of the consultation document for Scotland, and this is some useful context:

"The reforms that are being implemented in England and Wales cannot be directly replicated in Scotland because the Valuation Office Agency (VOA) data, which we will use to identify homes in Core Group 2 which are high cost to heat, does not apply in Scotland and the Scottish Assessors (the Scottish equivalent of the Valuation Office Agency) do not collect equivalent data in Scotland."

The Ofgem draft guidance for Scotland from their WHD page linked above sets out mandatory criteria for the broader group on pages 43-45, although as with the previous scheme suppliers can choose to add their own criteria to include more people.

It looks broadly the same as the scheme before, with income components and young child / disability / pensioner components.  As it's currently a draft though, it may still be subject to change.

(Direct link to the document https://www.ofgem.gov.uk/sites/default/files/2022-08/Draft Scotland WHD Guidance V0.1 for publication.pdf )