What is the Warm Home Discount?

What is the Warm Home Discount?

Some of you are probably already familiar with the term Warm Home Discount (WHD). The WHD means that you can get a one-time £140 discount against your energy bills if you are eligible. However, there’s a good chance many of you are not sure what it exactly implies, and above all, what you will need to become eligible for it. In the following lines, we’ll delve deeper into the matter and shine some light on it.

Why Was the Warm Home Discount Established?

The Warm Home Discount Regulations established the Warm Home Discount scheme in 2011. The government wanted to help people who were having a hard time paying their electricity or gas bills in the UK.

There Are Two Types of the Warm Home Discount

The scheme consists of domestic energy suppliers. As a result, they can provide a discount either directly or indirectly.
● Directly means that many eligible customers could get a direct rebate of £140. That will certainly make your energy bills more affordable. In order to get the £140 off your energy bill, you must buy your energy from an obligated energy supplier. You will also have to meet certain eligibility requirements, which we will discuss a bit later.
● Indirectly means that some suppliers will offer the discount by providing the customers with third-party service and support. They will use it to reduce the cost of your energy. You can apply for it even if your energy supplier isn’t participating in the Warm Home Discount scheme.

Are You Eligible for the Warm Home Discount?

You must meet the eligibility criteria for one of the two categories in the scheme. These are the Core Group and the Broader Group. The Core Group is an element of the WHD scheme, intended to support pensioners through a direct annual rebate of £140 to their electricity or gas bills. Also, if you want to get a direct discount on your bills, you will have to buy your energy only from a supplier that is participating in the WHD scheme.

The Broader Group covers a wider range of people and circumstances. Basically, that means that the suppliers who must participate also have their own means to provide £140 rebates to customers who are at risk of not being able to pay for gas or electricity.

Now let’s look at the criteria that you will need to meet in order to acquire a discount in the aforementioned groups.

Eligibility Criteria for the Core Group

We must mention again that the Core Group is designed for pensioners. By becoming eligible, you will get a £140 annual rebate off your electricity or gas bills.

You are eligible for the Core Group rebate scheme if:
● Your energy supplier is a part of the WHD scheme either by being obligated or by volunteering.
● You have the Guarantee Credit element of the Pension Credit.
● You have yours or your partner’s name on the energy bill.

The Department for Work and Pensions will usually identify you as an eligible Core Group customer automatically. If you are eligible for the WHD, you will probably get a letter, which will state that you will be applied for getting the discount automatically. Or, in contrast, it will tell you that you have to apply by January of the following year. The letter will also include the details on how to do this.

Everyone eligible for the WHD will usually receive a letter by the end of November. But what happens if you have not received a letter, but you think you should qualify for the WHD? In that case, you can contact the Warm Home Discount office by calling 0345 603 9439.

Eligibility Criteria for the Broader Group

You can get the Broader Group discount only if you buy energy from suppliers who are obligated to be a part of the WHD scheme. For example, if your energy supplier participates voluntarily, then you will not be eligible to get a discount. Also, customers must apply directly to their energy suppliers to get the rebate. Usually, you will be able to learn all the application details on your supplier’s website.

If you want to know whether you are eligible for the Warm Home Discount, you will need to read the guide on the Ofgem website. The criteria can be based on multiple factors. Furthermore, the compulsory WHD suppliers usually modify the criteria to suit the needs of their customers.

A part of the criteria includes that you receive the Universal Credit. Also, you will have to be either employed or self-employed and have an annual household income that is less than £16,190. Plus, you will have to be in receipt of a disabled child element, a limited capability for work element or responsible for a child under the age of 5 who lives with you or is in your custody.

What Will Happen to Your Warm Home Discount If You Switch Suppliers?

Most of you will agree that switching between energy suppliers can be an effective way to reduce your bills. But when considering the WHD, you should check the rules of your suppliers in regard to the switching.

Above all, if you have already received the discount, then you will probably be fine to choose a different supplier. In contrast, if you are still in the process of getting your WHD, then some complications may arise, and you could lose your discount.

Bottom Line

The government devised the WHD to help those in need when it comes to paying gas and electricity bills. With it, you can reduce your bills easily. However, in order to get the discount, you have to check all the eligibility requirements. Make sure that your energy supplier is participating in the scheme. Also, be careful when switching suppliers and make sure to get the discount first.

We hope that we’ve managed to clear up things when it comes to this matter. For more information, please check the government website here.

Energy Companies that currently are part of the Warm Home Discount

Below is a list of all companies that are currently part of the WHD. If your energy company isn’t on here, it still may be worth checking. This list was last updated october 2018.

  • Angelic Energy – see Robin Hood Energy
  • Atlantic – see SSE
  • Boost – see OVO
  • Bristol Energy – only if you’re eligible for the ‘core group
  • British Gas
  • Bulb Energy
  • Citizen Energy – see Robin Hood Energy
  • Co-operative energy
  • Ebico – see Robin Hood Energy
  • Economy Energy
  • EDF Energy
  • E.ON
  • First Utility
  • Flow Energy
  • GB Energy – see Co-operative energy
  • Great North Energy – see Robin Hood Energy
  • Green Star/Hudson
  • Liverpool Energy Community Company (LECCy) – see Robin Hood Energy
  • Lumo – see OVO
  • Manweb – see Scottish Power
  • M&S Energy – see SSE
  • npower
  • Our Power – only if you’re eligible for the ‘core group’
  • OVO
  • Powershop – see npower
  • Ram Energy – see Robin Hood Energy
  • Robin Hood Energy – only if you’re eligible for the ‘core group’
  • Sainsbury’s Energy – see British Gas
  • Scottish Gas – see British Gas
  • Scottish Hydro – see SSE
  • ScottishPower
  • Southern Electric – see SSE
  • Spark Energy
  • SSE
  • SWALEC – see SSE
  • Utilita
  • Utility Warehouse
  • White Rose Energy – see Robin Hood Energy
  • Your Energy Sussex – see Robin Hood Energy