Warm Home Discount and Social Tariffs

Key takeaways

• Social tariffs have now been phased out. They were designed to offer discounted energy prices to vulnerable consumers and those in fuel poverty, such as those over 60 or receiving means-tested benefits and aimed to reduce the burden of high energy costs

• Starting in 2011, social tariffs were gradually replaced by the Warm Home Discount, which provides a £150 annual reduction on electricity bills for eligible households. This has become increasingly important with the ongoing cost of living crisis. Now, social tariffs have ceased to exist at a time when pricing is controlled due to Ofgem’s price cap

• The Warm Home Discount is available to those on certain benefits, this discount can be applied to any tariff, offering flexibility and control over energy expenses

• Some energy providers offer funds and personalised payment services to assist vulnerable customers

The landscape of energy assistance in the UK has seen significant changes over the past decade. Social tariffs have been phased out and replaced by other measures like the Warm Home Discount scheme.

In this article, we'll explore what options are currently available for those in need.

What were social energy tariffs?

Social tariffs were introduced as a form of financial relief designed to support households that spent a disproportionate amount of their income on energy bills.

These special tariffs aimed to alleviate the strain of fuel poverty, a condition where more than 10% of a household's income is consumed by energy costs.

Vulnerable consumers benefited from discounted prices, making it easier for them to heat and power their homes.

What did social tariffs offer?

The structure of social tariffs was quite straightforward. They were priced to be on par with the cheapest energy tariffs available, providing an affordable option for those who qualified.

Along with the reduced rates, these tariffs often included additional support services, such as energy efficiency advice, to help consumers further lower their bills.

Eligibility was typically extended to individuals over 60, those receiving means-tested benefits, and households identified as living in fuel poverty or having a low income.

When were social tariffs phased out?

The shift away from social tariffs began in 2011, with energy suppliers gradually moving customers to the cheapest available tariffs. In place of social tariffs, the Warm Home Discount was introduced, offering a different form of assistance.

However, it's important to note that not all customers who were eligible for social tariffs are able to receive the Warm Home Discount, leaving some without the support they previously had.

Since the energy crisis began during the pandemic and then in the wake of the conflict in Ukraine, the rising cost of energy bills and the ever changing energy price cap has meant energy suppliers have begun offering more bespoke help for those on universal credit or struggling with fuel poverty.

What is the Warm Home Discount?

The Warm Home Discount scheme provides eligible households with a £150 reduction on their electricity bills annually, typically between October and March.

Unlike social tariffs, the discount can be applied to any tariff, giving consumers the freedom to choose from the cheapest options on the market. This flexibility allows for greater control over energy expenses. It is paid as one lump sum.

Am I eligible for the Warm Home Discount?

The eligibility criteria for the Warm Home Discount is as follows. To qualify, you or your partner must be a customer of a participating supplier and have your name (or your partner's name) on the electricity bill. Additionally, you must receive one of the following benefits:

• Guarantee Credit element of Pension Credit

• Universal Credit

• Housing benefit

• Or be on a low income

The government also takes into account the size and age of your home when determining eligibility. Some energy-efficient homes may not qualify for the discount.

For those seeking more information, the Warm Home Discount scheme can be reached at 0800 030 9322.

In Scotland, you must be receiving:

• Guarantee Credit element of Pension Credit

• Or be on a low income. You must also meet specific conditions depending on your energy supplier

What other social tariff schemes are available?

If you're struggling to manage your energy bills, it's worth inquiring about the Warm Home Discount with your supplier.

Many offer advice on debt management and energy efficiency to help you reduce costs. Companies like British Gas have established funds to assist vulnerable customers in clearing their debts.

Other available schemes include:

Eligibility for these payments generally includes recipients of certain benefits, such as Pension Credit and Universal Credit. The government's dedicated website provides more information on these schemes.

Energy grants

Beyond immediate bill reductions, the government offers grants for home improvements that enhance energy efficiency. These can cover costs for measures like insulation or the installation of renewable energy systems.

Organisations such as the Home Heat Helpline (0800 33 66 99) and the Energy Saving Trust are valuable resources for information on available grants and schemes.

Current energy provider offers

While specific social tariffs are no longer available, some energy providers have stepped up to support vulnerable customers. Here’s what some providers offer and how you can find out more.

Available social tariffs

Today's energy market may not feature social tariffs as they once existed, but there are still avenues for assistance with gas and electricity payments.

For those looking to navigate the current support landscape, see our full guide to finding help for energy bills. It's a comprehensive resource designed to point you in the right direction for the help you need. Citizens Advice can also offer support and energy saving tips

As the energy sector continues to evolve, staying informed about the latest support options is crucial for those looking to manage their energy costs effectively.

While the transition from social tariffs to schemes like the Warm Home Discount has been significant, there are still opportunities to find relief and ensure that your home remains warm and well-lit throughout the year.