Policy

Helping households to cut their energy bills

Supporting detail:

Warm Home Discount scheme

The Warm Home Discount scheme is a 4-year initiative (April 2011 to March 2015) aimed at helping around 2 million of the UK’s most vulnerable customers with their electricity bills annually. The £1.1 billion scheme is funded by energy suppliers.

We have recently committed to additional spending of £320m on the Warm Home Discount scheme in 2015/16.

Elements to the scheme

There are 4 elements to the scheme:

Core group of pensioners on low incomes

This is the most vulnerable group of customers. In 2012 to 2013 participating electricity suppliers made almost 1.1 million automatic payments of £130 to this group. Payments for 2013 to 2014 will be £135 for each eligible household.

Broader group of ‘at risk’ energy customers

Examples of people who may qualify for this discount are those on low incomes with a disability and those with a long-term illness or with young children. Participating electricity suppliers determine their criteria for eligibility, which are then approved by the Office of the Gas and Electricity Markets (Ofgem). There are limits on the number of customers who can benefit from Broader group schemes.

In the 2013 to 2014 period, approved Broader group scheme customers will receive a £135 discount on their electricity bills.

See below for a list of electricity suppliers offering Broader group schemes.

Legacy spend

Energy suppliers can continue to provide support through discounted/social tariffs and rebates.

Industry initiatives

These are energy supplier-funded programmes and partnerships that assist those in or at risk of fuel poverty by providing benefit entitlement checks, debt advice and energy efficiency measures.

Winter 2013-to-2014 payments

All those eligible or potentially eligible for a Core Group discount will have received a letter by mid January. Those whose letter asks them to contact the helpline to claim their discount will need to call by 14 March 2014. Discounts should be credited to electricity accounts by end of March 2014.

The discount only applies to electricity accounts, so if customers use different suppliers for their electricity and gas they should only contact their electricity provider for this scheme.

Participating electricity suppliers

The electricity suppliers participating in the Warm Home Discount scheme are:

Electricity suppliers offering Broader Group schemes

The suppliers offering Broader Group schemes are:

Further information

Three other schemes supporting people at risk from fuel poverty are the:

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