Households warned about warm home discount loopholes that could see you miss out on £150 free cash

HARD-UP households get a yearly discount on their energy bills – but there are loopholes which mean you may miss out.

The Warm Home Discount (WHD) rules have changed recently, and certain eligible people no longer qualify.

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The scheme offers a £150 discount on energy bills.

It helps thousands of households as they battle through winter and the cost of living crisis.

But the government flipped the rules last year which means hundreds of thousands of people will no longer qualify.

According to National Energy Action and Scope, over half a million households in England and Wales will now miss out on the payment.

This includes those on Disability Living Allowance and Personal Independence Payments.

Below we round up loopholes affecting recipients and how you could potentially avoid them.

You weren’t in receipt of the benefit by the right date

One of the biggest ways people fall through the cracks is because they weren’t receiving the letter on or by the allotted date, according to consumer expert Martyn James.

For example, to get the latest payments, you need to have been receiving certain benefits on or before Sunday, August 21.

However, if you later launch a successful claim for backdated benefits, you may still be able to qualify after this date.

So, do try and apply anyway or contact the government to explain your circumstances.

Your energy provider hasn’t signed up to the Warm Home Discount

Smaller energy providers do not have to offer the WHD, According to Sarah Coles, senior personal finance analyst at Hargreaves Lansdown,

This means that those customers may be eligible but can’t even get their foot in the door because their provider is not signed up.

If you’re able to, Sarah pointed out that it might be worth switching to an energy provider who has signed up to the scheme.

Check that you’re eligible first and do weigh up the cost of your new provider, switching versus what you’re paying now.

Here’s the full list of providers who offer the WHD:

• Affect Energy – see Octopus Energy
• Atlantic – see SSE
• Boost
• British Gas
• British Gas Evolve (formerly British Gas X) – see British Gas
• Bulb Energy
• Co-op Energy – see Octopus Energy
• E (Gas and Electricity)
• Ecotricity
• E.ON
• E.ON Next
• EDF
• GEUK (Green Energy UK) – if you live in Scotland, you must be in the ‘core group’ to be eligible
• Good Energy
• London Power
• M&S Energy
• Nabuh Energy – see British Gas
• Octopus Energy
• Outfox the Market
• OVO
• Rebel Energy – if you live in Scotland, you must be in the ‘core group’ to be eligible
• Sainsbury’s Energy
• Scottish Gas – see British Gas
• Scottish Hydro – see SSE
• ScottishPower
• Shell Energy Retail
• So Energy
• Southern Electric – see SSE
• SSE
• Swalec – see SSE
• Utilita
• Utility Warehouse

Your name isn’t on your energy bill account

Another loophole Sarah mentioned is if your name isn’t on your energy bill, but you qualify for the WHD – these people may also missing out.

This particularly affects those who may be unable to have their own name on the energy account because their disability means they struggle to communicate, for example.

Unfortunately, there isn’t much that can be done and it means that over 500,000 households, particularly disabled households, will lose the support.

However, you can still get it if the person on the bill is named on the benefit record of the person who qualifies.

Your property is too small

A key element of the changes for 2022-23 concerns the size of properties, Sarah said.

Bigger, older homes are generally harder to keep warm and so the government is focussing on providing more support to these properties.

This new “high energy cost” rule now means that those in smaller homes, or flats even will now miss out.

Those living in newer properties could also miss out.

The government calculates the score based on the size, age and type of property you live in.

It means those using more energy as their house is too big to heat, will be a priority.

Of course, it’s always worth applying for the WHD anyway, you never know.

You use a prepayment meter

Martyn James also told us that those on pre-payment meters have been left behind too.

That’s because the WHD is paid using a voucher to these customers, but Martin said that some people have been reporting problems with not only getting the voucher but also redeeming them.

This only related to those in England and Wales.

If you are a pre-payment meter customer and are having issues, do keep trying.

How do I get the discount?

People living in England and Wales don’t need to apply for the Warm Home Discount as of this year.

You get the payment automatically if your electricity supplier is part of the scheme and you qualify.

Though energy regulator Ofgem says some people may be asked to contact a Government helpline to confirm their eligibility.

The money won’t be paid to you directly – it’ll be added as credit to your electricity account. This usually happens between October and April.

Visit the Government website for more information.

How do I secure the discount in Scotland?

The Scottish Government has refused to renew their Warm Home Discount scheme in-line with England and Wales’ new application-free scheme.

Households in Scotland will have to follow the rules set out in the legacy scheme.

This means they’ll likely still be a “core group” that’ll receive an automatic payment and a “broader group” who’ll have to apply for the scheme with their energy provider.

You’ll need to check with your energy supplier directly to see the eligibility requirement and details on how to apply.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk