Martin Lewis on possibility of Warm Home Discount increase
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Earlier this week Money Saving Expert Martin Lewis criticised the Warm Home Discount amount, saying the scheme has not kept up with the times as the cost of energy bills has soared. He urged the Government to add money to the Warm Home Discount Scheme, saying the lack of an increase in the discount over the last nine years “doesn’t add up.”
The Warm Home Discount could potentially provide people with £140 off their electricity bill during the winter months, when heating is crucial.
The scheme provides a one-off discount between October and March, aiming to help those on low incomes to keep their homes warm.
The cheapest tariffs have gone up by 60 percent and the price cap is rising, however the Warm Home Discount has been the same for nine years.
When asked about the Warm Home Discount on Good Morning Britain Mr Lewis explained: “The Warm Home Discount is a certain amount of money given to those on low incomes.
“It’s currently £140 a year but someone has just tweeted me from Good Morning Britain saying a minister has announced it should go up to £150.
“I have been lobbying for it to go up as energy bills are going up 60 percent from the cheapest year on year and the Warm Home Discount has been £140 to help vulnerable people and it’s stayed like that for nine years.
“£150 isn’t going to tickle the sides to be honest but it’s an eight percent rise and energy prices are going up far more than that.”
Not all energy firms offer the Warm Home Discount – it is mainly the bigger companies that offer this.
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Those receiving the Guarantee Credit element of Pension Credit are eligible to claim the Warm Home Discount, also those people on a low income who meet their energy supplier’s criteria to be entitled to the discount.
The scheme does not impact the Cold Weather Payment or Winter Fuel Payment for anyone also taking advantage of those schemes.
It may be possible to get the discount on gas bills rather than electricity bills if one uses the same supplier for gas and electricity.
The scheme opens next month on October 18, 2021.
If someone uses a pre-pay or pay-as-you-go electricity meter, they can still apply.
Their relevant supplier can explain how the discount will be received once someone has been deemed eligible.
Many households are facing much higher gas and electricity bills this winter due to a global surge in wholesale gas prices that have forced some energy companies to go bust.
Britons have been hit with energy price hikes over the last few months and could be paying hundreds more this winter.
The rise in prices is set to cost Britons around £153 a year.
It is expected that millions of households across the country will see their energy bills rise by 13 percent.
On Twitter, the Resolution Foundation’s Chief Executive Torsten Bell discussed the negative effects of these changes.
He said: “In October not only will those on Universal Credit see their incomes cut by five percent overnight, but the energy price cap also increases reflecting hikes in wholesale prices (the cap will increase again in the spring by £100s).
“The result: the autumn is looking like a cost-of-living crunch.
“Millions of households will see their energy bills rise by 13 percent at exactly the same time as their income falls by £1000 a year. And remember general inflation is likely to hit four percent this winter.”
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