Warm Home Discount (WHD) 2022/2023 seems to have changed its criteria. (England and Wales)

Max68

Was looking into this as I am on a low income and received it last year as part of the Broader Group.  Had a look on Octopus website and it seems the criteria has changed and just having a low income doesn't seem to qualify you this time around if I have read it right.  Assume it's due the Government payments but frustrating if you are on a low income but not receiving certain benefits.,

https://octopus.energy/blog/warm-home-discount/#england-wales

Spoonie_Turtle

Yep, but it's nothing to do with the support package from the government.  They were overhauling the WHD already, with intention to do so from at least December 2020, if not before.  It seems (though I'm not 100% sure) the scheme was originally intended to finish / be reviewed in 2020 anyway, and with covid we had a year's grace before the reform.

*From the Energy White Paper https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/943736/FINAL_VERSION_CORRECTION.pdf p109:
"We will also consult on reforms to improve fuel poverty targeting, such as using government data to provide automatic rebates to most recipients - making the scheme administratively simpler …"

If you're interested in more detail and the intention/rationale behind the change, the consultation and government response was here: https://www.gov.uk/government/consultations/warm-home-discount-better-targeted-support-from-2022

Max68

Thank you for that, interesting to say the least.  Seems quite unfair though on those of us who qualified through low incomes in the past now miss out.  So, and this is just a general example as a for instance.  If you work a few hours and earn under the Universal Credit threshold you qualify for the WHD.  However, if you were to work a few more hours and earn just a few pounds over the UC threshold you miss out.

fryedslyce

The Government, have turned what was a relatively straightforward system into a ridiculously complicated one. This is normal.

Chrysalis

Its moved to means testing, but sadly they underfunded and over complicated it.

Its no longer via application, if you dont get it tough luck, no appeal process.

Having low income isnt enough, you have to also be deemed a high energy user.

The high energy use is not based on actual use but rather calculated predicted use, the formula uses things like floor space, council tax data and property age to determine usage. (Very controversial, the exact formula hasnt been released)

Energy certificates are only used if they dont have the above data.

They dont take into account the level of low income so e.g. someone who just about gets under the low income ceiling (might be two adults in one property e.g.) is treated as equal ability to pay as someone with the lowest levels of income (full means tested dependency).  (This is controversial in my opinion because they decided to treat energy use as an adjustable variable for ability to pay)

Roughly 1/3 of all low income will get WHD the other 2/3 wont.  It looks like those who wont, wont even get informed.

There will be some people where they lack data who will be invited to ring the WHD helpline to provide that information, they may or may not get WHD.

The energy companies correctly opposed this new system, stating their most vulnerable customers are singletons, and its under funded, however the charities stayed quiet, and the government pushed on.

By property type it significantly favours larger properties due to the formula.  On both extremities, only 7% of low income people in flats will get WHD whilst 88% of low income people in fully detached will get it.

Max68

Really good explanation there thank you.  So basically, those on a low income who in previous years received the WHD only really receive £260 worth of help this year, that's the Government £400 minus last year's £140 WHD.  I suspect this is going to come as a shock to many.  I consider myself fairly on the ball with making sure I applied on time for this, hence why I found this out now - many will be expecting payment as per usual and it will be a while before they find out they aren't going to get it,

The_Fat_Controller

@Max68 how do you work that out ?

You will get £400, whereas if that hadn't been introduced, only the WHD of £140

So that is £260 more than last year.

Max68

The_Fat_Controller said:

@Max68 how do you work that out ?

You will get £400, whereas if that hadn't been introduced, only the WHD of £140

So that is £260 more than last year.

Ha ha, well it depends on which way you look at it I guess!!  I should have said if the criteria had stayed the same people would be getting £540 worth of help this year, but with the change its £400, which is indeed as you say better that £140. If you live in Scotland the criteria has stayed the same for the broader group apparently.

SJMALBA

Max68 said:

The_Fat_Controller said:

@Max68 how do you work that out ?

You will get £400, whereas if that hadn't been introduced, only the WHD of £140

So that is £260 more than last year.

Ha ha, well it depends on which way you look at it I guess!!  I should have said if the criteria had stayed the same people would be getting £540 worth of help this year, but with the change its £400, which is indeed as you say better that £140. If you live in Scotland the criteria has stayed the same for the broader group apparently.

No, the requirement to apply for the broader group remains, but the eligibility has changed (I'm not sure if the eligibility criteria has yet been finalised by the Westminster government?), but it looks likely some (many?) former recipients will no longer be eligible (as also seems to be the case in England/Wales?).

SJMALBA

Looking into this further in respect of Scotland, it seems as though the eligibility criteria hasn't yet been finalised? - I'm sure that Octopus had a page showing a list of qualifying, means-tested benefits, but his has been removed and replaced by the previous 'More information on the application scheme will be available when the regulations come into force from September 2022.'

BG says: 'Alternatively, customers in Scotland who receive other specific benefits and meet the government’s criteria can apply for a Warm Home Discount payment. We don’t know exactly who will qualify for this and the opening for applications is likely to be later than normal. But we’ll update this webpage with details once we know and we will do everything we can to make sure you receive your payment on time'

etc.

A work still in progress, then?

(with apologies to the OP for taking the thread further OT)

Chrysalis

Max68 said:

Really good explanation there thank you.  So basically, those on a low income who in previous years received the WHD only really receive £260 worth of help this year, that's the Government £400 minus last year's £140 WHD.  I suspect this is going to come as a shock to many.  I consider myself fairly on the ball with making sure I applied on time for this, hence why I found this out now - many will be expecting payment as per usual and it will be a while before they find out they aren't going to get it,

The core group is pretty much as it was its now the first core group, whats changed is those who used to get it in the broader group.  Although this year everyone on PIP and DLA got a £150 payment (or still to get not sure if its been paid out yet) which compensates them for the loss of WHD.  But I know of course thats not everyone who used to be eligible for WHD.

Scotland is still on the old WHD scheme (I think) so wont have the problems I put in the previous post.  Applicants apply as normal.  But of course those who would qualify for the new WHD and didnt before lose out in Scotland.