Warm Home Discount Scheme Changes

deannagone

Previously, (before all the other payments were decided upon by the Govt because of the 'energy crisis')  Pensioners and Customers on Benefits could apply to their Energy Company for £140 Warm Home Discounts which were paid into their energy account around February.  Pensioners applied under one warm home discount scheme, low income people/families applied for Group 2.  You couldn't get the Warm Home Discount with every energy company.

Now its changed (2022-26).  Its £150 this year (not to be confused with the council tax rebate already made).  There are still the two groups of people that can get the warm home discount.  But you don't apply to the Energy Company anymore.  There seems to be an automatic assessment through government records.  One important change (at least for group 2, low income people, I don't know about group one) you not only have to be of low income, you also have to be assessed as having high energy costs.  These seem to be defined as high floor space or an older building or if you live in a detached property.  But I haven't been able to find out less vague information (i.e. at what age is a building judged to be 'more expensive'?).

I didn't even know these changes were being proposed.  I just fell upon the information whilst checking the Warm Home Discount was still running with the other energy crisis schemes having come into force.

I have tried to read the following links, but get word blind rather easily so will see if anyone can spot more details I have missed.

This is from Octopus, my energy provider but is less complicated than the other links https://octopus.energy/blog/warm-home-discount/

This says its a draft document but as its supposed to be applied in 2022, not sure if that means its as draft as one would assume (will have to be finalised soon one would have thought lol.https://www.ofgem.gov.uk/publications/draft-warm-home-discount-supplier-guidance-version-8-england-and-wales

I feel like this is something that is much more complicated than it was.., and very likely to go wrong.  Supposedly you can appeal a decision (according to the Octopus link).

I don't know, I am a bit confused, like I said, too many words and I go word blind.

Does anyone else know about this? 

I did search for Warm Home Discount on the forum before posting this.

pochase

https://forums.moneysavingexpert.com/discussion/6370679/warm-homes-discount/p1

KxMx

The criteria being used to define high energy costs is very vague,  and I doubt the various bits of information are even available to the general public. 

There is another topic discussing the changes here:
https://youreable.livingmadeeasy.org.uk/showthread.php?32703-Warm-Home-Discount-changes

Spoonie_Turtle

The draft eligibility statement shows the classification bands of age / floor space / type.


(Apologies to anyone using a screen reader - I can't type a whole description.  It shows table 5 outlining categories of property characteristics from page 14 of the document … which is actually in PDF format *facepalm*  I'll happily do a copied and pasted version if requested.)
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1093377/warm-home-discount-draft-eligibility-statement-2022.pdf

https://www.gov.uk/government/consultations/warm-home-discount-england-and-wales-draft-eligibility-statement

The qualifying threshold and exact formula don't appear to be available to the public yet.  I hope they will be once they've actually done the calculations for the first year.

Auti

If you have a mid terrace house built in 1884 that is L shaped (sorry don't know meterage but is 55 feet front to back door and 3/4 bedrooms of good size and high ceilings) how do I read this table? Sorry I cannot work it out and thank you for help.

doesntnotcompute

Auti said:

If you have a mid terrace house built in 1884 that is L shaped (sorry don't know meterage but is 55 feet front to back door and 3/4 bedrooms of good size and high ceilings) how do I read this table? Sorry I cannot work it out and thank you for help.

It's not even a table, it's 3 seperate lists without the corresponding numbers that would make it useful.

The proposed formula is:

Estimated Energy Cost = Intercept + (A × Age) + (B × Floor area) + (C × Property type)

So mid terrace might have a "Property type" = 4 (for instance), a flat might have a "Property type" = 1 then multiply by the unknown magic number "C" + "Pre 1889" = 20 (??)  x "A" etc.

There are also "Equivalisation factors" - "Number of people in household" - "After Housing Costs (AHC) income equivalisation factor" (no idea) that adjust the score.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1065787/Warm_Home_Discount_reform_final_stage_Impact_Assessment.pdf

Spoonie_Turtle

Auti said:

If you have a mid terrace house built in 1884 that is L shaped (sorry don't know meterage but is 55 feet front to back door and 3/4 bedrooms of good size and high ceilings) how do I read this table? Sorry I cannot work it out and thank you for help.

Oh this is just a list of the categories they're using within each characteristic, it's not a table to be read to see if a property might qualify.

Each of the characteristics - for your house, mid-terrace, pre-1919, the relevant square meter floor space - will be given a weighted value, plugged into their formula, and the result will be (as far as I understand) an indication of how much energy they expect to be required compared with all other properties.  They'll decide a threshold for what counts as 'high cost'.

[The other criterion for WHD qualification in Core Group 2 is to have a low income as determined by being in receipt of at least one means-tested benefit.]

Chrysalis

Have a look at this graph.

Auti

Thank you - would meet benefit  but no idea about house. Used to get WHD which really helped but guess wait and see - still waiting to see when CTC cost of living payment will be announced. 

Spoonie_Turtle

Auti said:

Thank you - would meet benefit  but no idea about house. Used to get WHD which really helped but guess wait and see - still waiting to see when CTC cost of living payment will be announced. 

From here https://www.gov.uk/guidance/cost-of-living-payment

Tax credits

To get the first Cost of Living Payment of £326, you must have been entitled, or later found to be entitled, for any day in the period 26 April 2022 to 25 May 2022 to:

• a payment of tax credits
• an annual award of at least £26 of tax credits

We will update this guidance when the government has announced the qualifying dates to get the second payment of £324.

Tax Credits	£326	Between 2 and 7 September 2022 for most people
	£324	From winter 2022

Auti

Thank you Spoonie_Turtle. I had not found the dates I get CTC and contribution ESA and rather than cope with UC (though am on no work requirement) I will wait til migration to do UC as hear a lot of scary stories about it.