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Warm Home Discount

The Warm Home Discount is a UK Government initiative to help low income and vulnerable households with energy costs. The scheme will be worth up to £1.13 billion over the four year period that runs from April 2011 to March 2015.  It aims to help around 2 million low income and vulnerable households annually.

The Department of Energy and Climate Change (DECC) is responsible for Warm Home Discount policy and legislation. The funding comes from the participating energy suppliers.

There are four elements to the scheme:

·         Core Group

Support is targeted at the households of less well-off pensioners.  Vulnerable customers identified by a data-matching process with the Department for Work and Pensions receive an automatic annual rebate on their electricity bill.  For Winter 2014 – 2015 the discount is £140.

·         Broader Group

In addition to the Core Group, suppliers are required to provide an annual rebate to a wider group of customers who are fuel poor or in a group at risk of fuel poverty. Eligibility for these customers is set by suppliers themselves, but approved by Ofgem under the Warm Home Discount regulations.

·         Legacy Spending

Suppliers have the option to continue to offer discounted/social tariffs or rebates to vulnerable customers who benefited from these initiatives under the previous Voluntary Agreement.  This area of the Warm Home Discount is expected to diminish over the lifetime of the obligation.

·         Industry Initiatives

The Industry Initiative element enables suppliers to provide assistance, beyond direct financial support, to customers in fuel poverty or at risk of fuel poverty.

Reporting

For a review of progress see:

Warm Home Discount Scheme Annual Report: Scheme Year 2

Warm Home Discount Scheme Annual Report: Scheme Year 1

For More Information

GOV.uk - DECC

WHD Website - Ofgem