Thousands of eligible households miss out on WHD

Tens of thousands of eligible customers in Scotland will miss out on Warm Home Discount (WHD) payments due to differences in how the scheme works north of the border.

Under the current rules customers who either get the Guarantee Credit element of Pension Credit or are on a low income and have high energy costs in England and Wales receive an annual £150 discount off their electricity bill to help with costs in colder months.

Last year the rules applying to the scheme were changed in England and Wales to ensure greater uptake, yet this was not reciprocated north of the border. In a government document published last year, the then Department for Business, Energy and Industrial Strategy explained the changes were not possible in Scotland due to differences in the way data is held, so there is a separate scheme.

Instead, Scotland kept the old system where suppliers were given a quota of households to help based on their market share. This means that some eligible households will miss out once the quota is filled.

Highlighting the impact this will have on vulnerable consumers, prepayment meter (PPM) specialist energy supplier Utilita has announced its new charity, Utilita Giving, has committed £500,000 to plug the £150 shortfall to more than 3,100 Utilita customers in Scotland who will not receive the WHD through no fault of their own.

Utilita Giving executive director Helen Boardman said: “Some households in the coldest parts of Scotland are eligible for the Warm Home Discount but have missed out on their £150 helping hand this year due to the lottery of applying and falling outside of the quota.

“This is patently unfair. Imagine if the same were true for other government benefits such as the State Pension and Universal Credit… ‘Yes, you are eligible, but our quota is filled, so we will not be able to make a payment to you this year’.

“We cannot let politics and bureaucracy get in the way – affordability is the biggest crisis facing households, so we have had to step in to help them.”

In response, Scottish Government energy minister Gillian Martin said: “The Scottish Government has consistently called on the UK Government to fully use all levers at its disposal, including its powers over the Warm Home Discount, to make changes to benefit consumers in Scotland. We have also called on them to introduce a social tariff to target support at those who need it most. We were deeply disappointed it missed the opportunity to do so in the Chancellor’s Autumn Statement.

“The Scottish Government continues to do everything within its limited power to support households struggling with energy bills – trebling the Fuel Insecurity Fund to £30 million this year.”

A Department for Energy Security and Net Zero spokesperson said: “Funding for the Warm Home Discount is spread equally across Great Britain – with three million households expected to benefit from £150 targeted support this winter.

“Our Energy Price Guarantee remains in place to protect people until April next year and we’re continuing to help the most vulnerable, with eight million households expected to benefit from a £900 cost-of-living payment for those on means-tested benefits, and an extra £150 for disabled people.”

Utilita Giving has received £5 million in seed funding from the PPM supplier which will be used to help households in need access food and fuel.

The charity will accept applications for support from organisations in England, Wales, and Scotland, with immediate effect.