Warm Home Discount scheme set to be changed – how Britons could be impacted in 2021

Martin Lewis outlines the Warm Home Discount criteria

The Warm Home Discount Scheme is available this winter, offering a discount between September 2020 and March 2021. It is likely energy bills, electricity bills included, will rise this winter, as many people attempt to keep warm at home. But this can create a financial toll on families across the country, and thus the Warm Home Discount attempts to provide assistance.

Currently, the Warm Home Discount scheme is scheduled to finish for the final time in March 2021.

The government has explained the regulations end in the spring, and thus this kind of support is set to be withdrawn.

However, partially due to the impacts of the ongoing COVID-19 pandemic, the government is now considering an extension of the scheme.

In a one-year extension, the Warm Home Discount may be able to provide additional support to Britons for another year.

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The report reads: “We propose to continue to provide energy bill support through the WHD scheme for over two million low income and vulnerable households into winter 2021/22.

“Our proposals will also enable the continuation of vital Industry Initiatives support from April 2021.”

COVID-19, the report went on to state, has highlighted key issues of fuel poverty across the UK.

While initiatives have made progress on helping many Britons, there is further work to be done on the matter.

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For the 2021/22 year, it is proposed that the major elements of the scheme are kept the same.

Eligibility for the Core Group – those on the Guarantee Credit element of Pension Credit – and the Broader Group – those on low income – will continue into the new year.

At present, 1.1 million Pension Credit Guarantee Credit recipients can receive money off their electricity bills.

These individuals are joined by the 1.2 million low income households the government states are eligible through the Broader Group.

The proposal also states the rebate level will be kept at £140, as those who are eligible are likely to increase due to the pandemic.

However, the government consultation did ask Britons if the size of the rebate should change, and if so, why.

The Department of Work and Pensions (DWP) has now said it is “analysing feedback” from the consultation document.

As a result, Britons can expect to receive news in due course, and of course, find out whether the Warm Home Discount will be extended. 

To be eligible for the Warm Home Discount, people must either receive the Guarantee Credit element of Pension Credit, or be on a low income.

The latter group must also meet their energy supplier’s criteria for the scheme in order to receive a payment.

While the Core Group will receive the discount automatically, others will be required to apply by reaching out to their energy supplier. 

However, an issue with the Warm Home Discount scheme, with some stating the ‘first come first served’ policy means those who were slow to apply may have missed out.

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