Around 210,000 disability benefit claimants set to lose Warm Home Discount

Around 210,000 people claiming Disability Living Allowance (DLA), Personal Independence Payment (PIP) and Attendance Allowance (AA) are set to lose the Warm Home Discount, according to Fair By Design, an independent organisation that responded to the government's consultation on the scheme¹. The government published its response to the Warm Home Discount: Better targeted support from 2022 consultation in the week before 12 April 2022, the date of Fair By Design's response¹.

Under the changes, the rebate rises from £140 to £150¹. Fair By Design said the scheme will provide rebates automatically to those eligible, and that energy supplier thresholds are being lowered so that companies with smaller numbers of customers will have to provide the rebate¹. The organisation said it had called, alongside National Energy Action, for an extension and expansion of the Warm Home Discount so that all eligible low income working age households receive the rebate automatically without having to apply each year to their supplier¹.

Martin Coppack, Director at Fair By Design, said:

Fair By Design said it was "very concerned" that people claiming DLA, PIP or AA are set to lose the discount, adding that most of these people will already be paying a poverty premium for their energy and that removing the discount will exacerbate this¹. The organisation said it will continue to call for the government to ensure people claiming DLA, PIP or AA do not end up losing money and being worse off through the eligibility changes, and for the future rebate to rise to reflect the rising cost of bills¹.

The government's own response document is cited by Fair By Design but its contents are not set out in the material available; the figures for who gains and loses eligibility, and the timetable for the changes, have not been reported here beyond what Fair By Design states¹.

Why it matters for households

The Warm Home Discount is a rebate on electricity bills delivered through energy suppliers, and the changes described affect which households qualify. On Fair By Design's account, around 210,000 people receiving DLA, PIP or AA will no longer receive the discount¹. Those claimants are the group identified as losing out, while the rebate itself rises by £10, from £140 to £150¹. Fair By Design also states that eligibility will be assessed automatically rather than through a yearly application to a supplier, and that smaller suppliers will have to take part¹. The organisation's comparison is with bill prices, which it says have risen 54%¹. The practical effect for a household that loses the discount is the loss of the rebate on its electricity costs; for those who keep it, the amount changes. The dates on which the new eligibility rules and the £150 rebate take effect are not stated in the material available¹.

What happens next

Fair By Design says it will continue to campaign for people claiming DLA, PIP or AA not to be made worse off by the eligibility changes, and for future rebates to keep pace with the cost of bills¹. No further government announcement or implementation date is reported in the material available¹.

More on the scheme and other bill support is in our guide to the Warm Home Discount, and disability and means-tested payments are covered in our benefits section.