PIP claimants could lose out if Warm Home Discount eligibility changes | Personal Finance | Finance
The Warm Home Discount offers £140 off one’s electricity bill, and it will be raised to £150 from next winter. Despite more people qualifying for the cash boost, charities are warning that there will be more than 200,000 disabled people who receive Personal Independence Payments (PIP) and Disability Living Allowance (DLA) who will reportedly no longer get the payment. Campaigners are hoping for an announcement in tomorrow’s Spring Budget to clear up any confusion.
Rachel Tomlinson currently qualifies for the Warm Home Discount as she gets PIP, however she fears that she may lose this benefit when the proposed changes come to effect.
Rachel has mobility issues and has an extra need for fuel as she uses an electric wheelchair which needs to be triple charged, as well as certain household appliances such as a tumble dryer and dishwasher to make things easier for her as she can’t bend down easy.
On BBC Money Box, she explained that not having the Warm Home Discount will throw her into further fuel arrears because she does not have any choice but to use these things. There is no way for her to reduce her usage.
She said: “I feel like we’re getting knocked back from every angle at the minute with the cost of living and everything else that goes with it.”
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Currently, if people receive DLA or PIP, and another means tested benefit, then they will very likely qualify for the Warm Home Discount.
It’s £140 off someone’s electricity bill, but they have to apply for it.
Louise Rubin, Head of Policy and Campaigns at the disability equality charity Scope discussed what the proposed changes will mean when enforced.
She said: “Under the new proposed system, you will have to demonstrate that you are in fuel poverty as well as being on a means tested benefit.”
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With the cost of living crisis, and tax hikes looming, it will put a financial squeeze on disabled people with low incomes who will no longer receive the cash boost.
She said: “The proposal should be abandoned all together.
“We hope to see an announcement in the spring statement, we really need an end to the confusion on this now.”
The planned changes are in England and Wales. The scheme doesn’t operate in Northern Ireland and Scotland is expected to announce its own scheme later.
A Department for Business, Energy and Industrial Strategy spokesperson said: “Our reforms to the Warm Home Discount scheme will prioritise those households who are most likely to struggle to heat their homes. It is a fuel poverty scheme and we are increasing both the number and amount of fuel poor households that can benefit from it.
“The discount is just one measure we are taking to help tackle rising energy costs. Our energy price cap continues to insulate households from volatile gas markets, and we are also providing a £200 reduction on bills this autumn and a £150 non-repayable reduction in Council Tax bills.”
BBC Money Box is available to listen to on BBC Sounds.
