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What Is The Warm Home Discount?

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Warm home discount

With energy costs soaring, the UK government has stepped in to help reduce the energy bills of domestic and non-domestic customers. This is needed to keep the general populace afloat in tough times.

In this piece, we’ll discuss the Warm Home Discount Scheme, focusing on how it works, who is eligible, and more. Read on if you want to find out more.

What Is The Warm Home Discount?

The Warm Home Discount Scheme is a government-led initiative to help UK residents cope with rising energy costs in winter. The scheme requires energy suppliers to grant eligible customers a £150 rebate on their electricity bill or gas bill.

The scheme has become more well-known recently due to the increase in energy prices. It was established in 2011 and has been extended to March 2026.

The scheme is not government funded and requires energy suppliers to volunteer for the scheme to provide support to UK residents. Specifically those with cold-related illnesses, low income, and those who live in fuel poverty.

You may get direct support and receive a £150 energy rebate on your electricity account. It could also be indirect; from a third party acting on behalf of a supplier that provides support services to customers to reduce fuel poverty.

To receive this £150 rebate, you will first need to be purchasing your energy from an obligated energy supplier. You will also need to meet a variety of eligibility requirements.

If you don’t use an obligated energy supplier, you could still benefit from the Industry Initiative part of the scheme. This element applies to a larger group of fuel-poor UK residents.

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Am I Eligible For The Warm Home Discount?

You will be eligible to receive the Warm Home Discount if you fall into any of the core groups listed below.

Core Group 1

You will fall under Core Group 1 if you are already receiving the Guarantee Credit Element of Pension Credit. This also means that you will automatically qualify and won’t need to do anything further to receive your rebate.

These are the criteria you will need to meet in order to qualify:

  • Your name or your partner’s name will need to be on the energy bill.
  • You or your partner receives the Guarantee Credit Element of Pension Credit.
  • You purchase your energy from an obligated energy supplier that offers the Warm Home Discount.

Core Group 2

You will fall under Core Group 2 if you have a low income and are already receiving means-tested benefits.

Core Group 2 customers based in England and Wales won’t need to apply for the Warm Home Discount, as they will be identified by the Department for Work and Pensions, and their rebates will also be applied automatically.

These are the criteria you will need to meet in order to qualify:

  • You will need to be purchasing your energy from a supplier that offers the Warm Home Discount.
  • You will need to have a low income, already be receiving certain means-tested benefits, and are either in fuel poverty or at risk of fuel poverty.

Fuel poverty is measured differently in the countries within the UK, so these criteria will also determine whether you qualify or not.

  • The Warm Home Discount Scheme is not available in Northern Ireland, but there are other schemes that help residents with their energy bills, such as the Affordable Warmth Scheme.
  • If you’re based in England, you’ll be assessed on whether you have high household costs and are on income support.
  • If you’re based in Scotland or Wales, then you’ll qualify for the Warm Home Discount Scheme if you spend more than 10% of your household income on your energy bills.

Scottish Broader Group

If you live in Scotland and are not eligible to fall under Core Group 1, then you may still be a part of the Scottish Broader Group.

The eligibility criteria include the fact that you need to be receiving at least one of the following qualifying benefits:

  • Income support
  • Income Related Employment and Support Allowance (IR ESA)
  • IR ESA and are a member of a work-related activity group
  • Income-Based Jobseeker’s Allowance
  • Housing benefit
  • Universal credit alongside a disabled child element, child element, or a disability or pensioner premium
  • Child tax credit by virtue of an award

If you live in Scotland and receive any of those means-tested benefits, you must meet at least one of the following criteria to qualify:

  • Having parental responsibility for a child or children under the age of 5.

  • Currently receiving a disabled child premium, child tax credit, disability premium, or pension premium.

How Do I Apply For The Warm Home Discount?

If you fall under either Core Group 1 or Core Group 2, then you no longer need to apply for the Warm Home Discount to receive it. Your electricity supplier will already know whether you qualify or not.

However, if you fall under the Scottish Broader Group, you will need to apply by contacting your electricity supplier. You should do this as soon as possible as well due to there being a limited number of discounts available. You will also need to manually apply for the discount if you live in a park home.

If you want to find out whether you qualify, you can call the Warm Home Discount phone line on 0800 731 0214. Some energy providers do not offer this discount, however. If this is the case, you should consider changing suppliers.

We will list all of the energy suppliers that offer the Warm Home further on, so read on to find out.

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Which Energy Companies Offer The Warm Home Discount?

The compulsory participants in this year of the Warm Home Discount Scheme include:

  • British Gas
  • Bulb Energy
  • E (Gas and Electricity)
  • E.ON
  • Ecotricity
  • EDF Energy
  • So Energy
  • Outfox the Market
  • Good Energy
  • Octopus Energy
  • OVO Energy
  • Scottish Power
  • Shell Energy
  • Utility Warehouse
  • Utilita

The suppliers below voluntarily contribute to the scheme and, therefore, only offer support to those that fall in the Core Groups.

  • Green Energy (UK)
  • Rebel Energy

There are also some other energy suppliers that make use of “white label” energy providers that are not licensed to supply gas or electricity themselves.

If you are with one of these suppliers, then you may also be eligible to receive the Warm Home Discount:

  • Affect Energy
  • Atlantic
  • Boost
  • British Gas Evolve
  • Co-op Energy
  • Ecotricity
  • London Power
  • M&S Energy
  • Nabuh Energy
  • Sainsbury’s Energy
  • Scottish Gas
  • Scottish Hydro
  • Southern Electric
  • SSE
  • Swalec

What If I Have A Prepayment Or Pay-As-You-Go Meter?

If you are on a direct debit, you won’t need to do anything more, as your Warm Home Discount will be applied to your electricity account or your gas account on request.

However, things work a little bit differently if you prepay for your energy bills, as you will be credited against future energy use. Some suppliers may also tender payment directly to you.

Prepayment meter customers and Core Group customers who have switched suppliers may receive their rebate as a cheque, voucher, or Special Action Message. Energy suppliers are responsible for checking if rebate vouchers have been delivered and redeemed.

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Final Thoughts

While energy costs have skyrocketed (with no sign of slowing down), the government has launched schemes to help UK residents.

If you want to see how else you can save on your energy bills, compare business gas prices and compare electricity prices with us at Business Energy Comparison. We can provide you with free quotes and compare business energy suppliers to find the best deal for your business.

Frequently Asked Questions

Will I receive a rebate even if I switch suppliers?

If you switch your energy supplier, and are in Core Group 1 or 2, your previous energy supplier must provide you with your rebate.

You can contact the supplier of your original contract on the qualifying date to check if they have your details. They should also be able to tell you when and how you will receive your rebate.

If you did not have a contract with a participating electricity supplier on the qualifying date, you won’t receive a rebate for this scheme year. This will still be the case if you change over to a participating electricity supplier.

 

What should I do if I don't get a letter from the government, but I believe I will be eligible?

The Department for Business, Energy, and Industrial Energy (BEIS) generally determines which Core Group you will fall into. They can also tell you whether you won’t be eligible to receive a discount from the scheme.

If you believe you are eligible but don’t receive a letter from the government, contact the Warm Home Discount team to check if you qualify.

Will the Warm Home Discount affect my Cold Weather Payment or my Winter Fuel Payment?

No, receiving a Cold Weather Payment or a Winter Fuel Payment will not disqualify you from receiving your Warm Home Discount rebate.

Where can you redeem a Warm Home Discount voucher?

You can redeem a Warm Home Discount voucher at any Post Office branch in the UK.

What should I do if my Warm Home Discount voucher isn't working?

If your Warm Home Discount voucher does not work, then you will need to contact your electricity supplier.

You will also need to make contact with your supplier if your meter is changed to a Smart Pay As You Go meter so that your supplier can apply your rebate.