'Warm Home Discount claims are still open' - displaced energy customers urged to apply
ENERGY consumers who have been displaced by the ongoing crisis have been urged to apply for the Warm Home Discount scheme. This scheme allows claimants to save £140 on their energy bills.
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Energy firms have been going bust over the last few weeks or so as gas prices skyrocketed. More than two million customers have been displaced from failed suppliers but according to Uswitch.com, these consumers still have time to apply for the Warm Home Discount from the providers they find themselves with.
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Consumers need to act fast
According to Uswitch, the "six major suppliers that have taken on displaced customers" will allow "first come, first served" applications from affected claimants. These suppliers are British Gas, British Gas Evolve, EDF Energy, E.ON Next, Octopus Energy and Shell Energy.
Uswitch warned with 15 suppliers having exited the market in 2021, some eligible households may be at risk of missing out on the discount if they forget to re-apply with their new supplier.
Research from the company showed there is still time to apply, as all the major providers who have taken on displaced customers this year are still open to applications.
New British Gas customers who were accepted onto their former supplier’s Warm Home Discount scheme as part of the Broader Group will be automatically added to British Gas’ scheme. However, displaced customers with other suppliers will need to re-apply once they receive their new customer number.
On top of the "six major suppliers", many other companies that operated the scheme last year are also still open to applications, including Ovo Energy, SSE, Scottish Power, and others.
Utilita remains the only supplier to have already closed applications, while So Energy has yet to open theirs. However, So Energy confirmed its applications will open this month.
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Lack of awareness
The Warm Home Discount aims to reduce fuel poverty by providing low-income households with a £140 discount on their energy bills. The Government is also proposing to increase the discount to £150 from 2022.
While this support will be crucial for many, previous Uswitch research found there is a widespread lack of knowledge about the scheme, leading many to miss out. Nearly a third of people (32 percent) who could be eligible for the discount did not know the scheme existed.
Additionally, Last year, the Government pledged to consult on providing automatic rebates to people in fuel poverty, and Uswitch called on ministers to implement this process as soon as possible.
Uswitch reiterated the importance of applying early in the face of limited availability. The scheme is operated on a "first come, first served" basis and there is a fixed pot of money to be distributed.
This year, the total amount has risen with inflation from £351million to £357million and qualifying applicants will have their rebates paid by March 31, 2022.
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Justina Miltienyte, energy policy expert at Uswitch.com, commented: "Eligible consumers are in danger of falling through the cracks if their supplier goes bust and they are moved to another provider.
“The £140 may not be enough to balance out rising energy prices, but it will still be a lifeline to many people on low incomes this year.
“Thankfully, Warm Home Discount applications are still open with almost all the suppliers which were involved last year. This includes all the major providers who have taken on customers from those that have exited the market.
“If you believe you are eligible for the discount, we recommend that you apply for it through your supplier as soon as possible. Even if you applied with an energy company which has since gone bust and moved to a new provider, we recommend that you re-apply with the new supplier so you do not miss out.”
Warm Home Discount eligibility
There are two ways to qualify for the Warm Home Discount Scheme. Claimants will be eligible if they get the Guarantee Credit element of Pension Credit - known as the "core group".
Those on low incomes, and who meet their energy supplier’s criteria for the scheme, will also qualify and be known as the "broader group".
Claimants in the core group will qualify if on July 4 2021 their energy supplier was part of the scheme, their name (or their partners) was on the bill and they or their partner are getting the Guarantee Credit element of Pension Credit. The scheme for the core group opens today and eligible recipients should expect a letter between now and December 2021 telling them how to get the discount.
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Discounts should be applied by March 31, 2022.
Those who qualify under the broader group will be eligible if they're on a low income and get certain means-tested benefits. To get the discount under these parameters, claimants will need to stay with their supplier until it's paid.
Supplier's themselves will decide who can get the discount within this group.
The Government notes the number of discounts suppliers can give is limited and as such, claimants should check with their supplier as early as possible to see if they're eligible and how to apply.
Claimants will need to check even if they were eligible for a discount last year.
