diff --git a/changelog.d/502-warm-home-discount-corrections.changed.md b/changelog.d/502-warm-home-discount-corrections.changed.md new file mode 100644 index 0000000000..1a0870ad87 --- /dev/null +++ b/changelog.d/502-warm-home-discount-corrections.changed.md @@ -0,0 +1 @@ +Corrected the Warm Home Discount plan (docs/book/programs/gov/ofgem/warm-home-discount-plan.md): the April-to-March scheme year, the Scottish core group under Schedule 1 to SI 2026/488, the pre-2022 rebate amounts, the 2025-26 qualifying benefits, the helpline route and the ESA take-up caveat. diff --git a/docs/book/programs/gov/ofgem/warm-home-discount-plan.md b/docs/book/programs/gov/ofgem/warm-home-discount-plan.md index 151871ce26..7f179f7833 100644 --- a/docs/book/programs/gov/ofgem/warm-home-discount-plan.md +++ b/docs/book/programs/gov/ofgem/warm-home-discount-plan.md @@ -3,7 +3,9 @@ ```{warning} **Not yet modelled.** The Warm Home Discount (WHD) is a £150 rebate off a household's electricity bill each winter, paid by energy suppliers -under schemes that Ofgem administers. PolicyEngine UK doesn't model it. +under schemes that Ofgem administers. PolicyEngine UK doesn't model it; +draft [#2504](https://github.com/PolicyEngine/policyengine-uk/pull/2504) +implements Phase 1 below. This page sets out the proposed scope, tracked in [#502](https://github.com/PolicyEngine/policyengine-uk/issues/502). Updated October 2026: in England and Wales eligibility is now based on @@ -21,13 +23,19 @@ They replace the [2022 Regulations](https://www.legislation.gov.uk/uksi/2022/772/contents) (SI 2022/772), which applied to both England and Wales. -Under the 2022 Regulations, the means-tested group had to pass a -"high cost to heat" test based on property data. For winter 2025-26 -that test was removed, so every household on a qualifying means-tested +Under the eligibility statements made under the 2022 Regulations, the +means-tested group (Core Group 2) had to pass a "high cost to heat" test +based on property data. For winter 2025-26 the eligibility statement +removed that test, so every household on a qualifying means-tested benefit became eligible. The government estimated this would bring -2.7 million more households into the scheme, taking it to more than -6 million households in Great Britain -([government response, June 2025](https://assets.publishing.service.gov.uk/media/6852e6e9679778c74ec15e82/expanding-the-warm-home-discount-scheme-2025-to-2026-government-response.pdf)). +2.7 million more households into the scheme +([government response, June 2025](https://assets.publishing.service.gov.uk/media/6852e6e9679778c74ec15e82/expanding-the-warm-home-discount-scheme-2025-to-2026-government-response.pdf)), +taking it to around 6.1 million households in Great Britain +([impact assessment](https://assets.publishing.service.gov.uk/media/68529908ff16d05c5e6aa678/expanding-the-warm-home-discount-scheme-2025-to-2026-impact-assessment.pdf)). +For winter 2025-26 (qualifying date 24 August 2025) the qualifying +benefits also included income-based Jobseeker's Allowance and Income +Support, with Pension Credit Guarantee Credit in a separate core group +([eligibility statement, 2025 to 2026](https://www.gov.uk/government/publications/warm-home-discount-eligibility-statement-england-and-wales-2025-to-2026-scheme-year/warm-home-discount-eligibility-statement-england-and-wales-2025-to-2026)). For winter 2026-27, GOV.UK ([eligibility in England and Wales](https://www.gov.uk/the-warm-home-discount-scheme/if-you-live-in-england-and-wales)) @@ -41,7 +49,9 @@ their partner gets one of: - income-related Employment and Support Allowance; - Pension Credit. -The rebate is applied automatically. +Most eligible households get the rebate automatically through data +matching; the rest are sent a letter and must call the helpline by +26 February 2027 to confirm their details. ### Scotland @@ -53,12 +63,18 @@ The scheme runs under separate Scottish regulations. (SI 2022/1073). Both 2026 Regulations set the rebate at £150. For winter 2026-27 ([eligibility in Scotland](https://www.gov.uk/the-warm-home-discount-scheme/if-you-live-in-scotland)): -- **Core group, automatic:** Pension Credit; Universal Credit with an - extra amount for a disability or health condition; income-related ESA - with a disability or pensioner premium; or a Support for Mortgage - Interest loan with one of those premiums. Also people responsible for - a child under 5 who are unemployed and on Universal Credit or - income-related ESA, or have a Support for Mortgage Interest loan. +- **Core group, automatic.** Under Schedule 1 to the Regulations: + anyone on Pension Credit; Universal Credit claimants with the disabled + child addition, or who are not in work and have a child under 5 or + limited capability for work (with or without work-related activity); + income-related ESA claimants with a child under 5, a pensioner, severe + disability or enhanced disability premium, or limited capability for + work or work-related activity; Income Support or income-based JSA + claimants with a child under 5 or a pensioner, higher pensioner, + disability, severe disability, enhanced disability or disabled child + premium; and people receiving loans for mortgage interest through + Pension Credit, or through one of those legacy benefits with a child + under 5 or a qualifying premium. GOV.UK's summary is narrower. - **Broader group, by application** to the energy supplier, which can set its own extra criteria. @@ -76,22 +92,29 @@ extends to Great Britain only. Now a rule on benefit receipt: - Parameter `gov.ofgem.warm_home_discount.amount`: £150, the - "prescribed rebate" in both sets of 2026 Regulations (£140 before - winter 2022-23). -- Parameter listing the qualifying benefits, so a reform can widen or - narrow the list. + "prescribed rebate" in both sets of 2026 Regulations (£150 since + winter 2022-23; under the Warm Home Discount Regulations 2011 it was + £140 from 2014-15 to 2021-22, after £120, £130 and £135 in the first + three scheme years). +- Parameter listing the qualifying benefits by scheme year, since the + 2025-26 and 2026-27 lists differ, so a reform can widen or narrow the + list. - Variable `warm_home_discount` (Household, YEAR): the amount if the household is in England or Wales and any benefit unit receives a qualifying benefit. Read receipt from the modelled benefits, for example `universal_credit`, `housing_benefit`, `esa_income` and - `pension_credit`, so that take-up carries through. -- No separate take-up flag, since the rebate is paid without a claim. + `pension_credit`, so that take-up carries through (`esa_income` is + reported receipt, screened by capital and work tests). +- No separate take-up flag, since most rebates are paid through data + matching without a claim (a minority must phone the helpline). ### Phase 2: Scotland core group -The core group can be built from the same benefit variables plus the -Universal Credit disability elements, the ESA premiums and the age of -the youngest child. +The core group can be built from the same benefit variables plus +Universal Credit's disabled child and limited capability for work +assessments, whether the claimant is in work, whether there is a child +under 5, and legacy-benefit premiums. ESA's pensioner premium and loans +for mortgage interest have no variables yet. ### Phase 3: Scotland broader group @@ -100,8 +123,8 @@ published recipient numbers for Scotland, on top of the eligible group. ## Data and calibration -- Ofgem's [Warm Home Discount pages](https://www.ofgem.gov.uk/environmental-and-social-schemes/warm-home-discount-whd): - recipients and spend by group and country. +- Ofgem's [Warm Home Discount reports and data](https://www.ofgem.gov.uk/environmental-and-social-schemes/warm-home-discount-whd/warm-home-discount-whd-reports-and-data) + and annual reports: recipients and spend by group and country. - DWP benefit caseloads, already used to calibrate the qualifying benefits. - The 2025-26 impact assessment and government response give the @@ -110,10 +133,11 @@ published recipient numbers for Scotland, on top of the eligible group. ## Open questions -- **Timing.** The scheme year runs from October to March, with the - qualifying date in August. A model year (April to March) contains one - winter's rebate, so pay the rebate in the year that contains the - winter. +- **Timing.** The scheme year runs from April to March, but rebates are + paid in the winter: letters go out from late October and suppliers + apply the discount by 31 March, with the qualifying date in August. A + model year (6 April to 5 April) contains one scheme year's rebate, so + pay it in the model year that contains the winter. - **Who counts as the household.** The rebate attaches to an electricity account. In multi-benefit-unit households, decide whether one qualifying benefit unit is enough (simplest, and likely right for @@ -130,7 +154,9 @@ published recipient numbers for Scotland, on top of the eligible group. - [The Warm Home Discount (England and Wales) Regulations 2022 (SI 2022/772)](https://www.legislation.gov.uk/uksi/2022/772/contents). - [The Warm Home Discount (Scotland) Regulations 2026 (SI 2026/488)](https://www.legislation.gov.uk/uksi/2026/488/contents). - [The Warm Home Discount (Scotland) Regulations 2022 (SI 2022/1073)](https://www.legislation.gov.uk/uksi/2022/1073/contents). -- DESNZ, [Expanding the Warm Home Discount scheme, 2025 to 2026: government response](https://assets.publishing.service.gov.uk/media/6852e6e9679778c74ec15e82/expanding-the-warm-home-discount-scheme-2025-to-2026-government-response.pdf). +- DESNZ, [Expanding the Warm Home Discount scheme, 2025 to 2026: government response](https://assets.publishing.service.gov.uk/media/6852e6e9679778c74ec15e82/expanding-the-warm-home-discount-scheme-2025-to-2026-government-response.pdf) and [impact assessment](https://assets.publishing.service.gov.uk/media/68529908ff16d05c5e6aa678/expanding-the-warm-home-discount-scheme-2025-to-2026-impact-assessment.pdf). +- DESNZ, [Warm Home Discount eligibility statement, England and Wales, 2025 to 2026](https://www.gov.uk/government/publications/warm-home-discount-eligibility-statement-england-and-wales-2025-to-2026-scheme-year/warm-home-discount-eligibility-statement-england-and-wales-2025-to-2026). +- [The Warm Home Discount Regulations 2011 (SI 2011/1033)](https://www.legislation.gov.uk/uksi/2011/1033/regulation/2): earlier rebate amounts. - GOV.UK, [Warm Home Discount Scheme](https://www.gov.uk/the-warm-home-discount-scheme). -- Ofgem, [Warm Home Discount scheme pages and reports](https://www.ofgem.gov.uk/environmental-and-social-schemes/warm-home-discount-whd). +- Ofgem, [Warm Home Discount scheme pages](https://www.ofgem.gov.uk/environmental-and-social-schemes/warm-home-discount-whd) and [reports and data](https://www.ofgem.gov.uk/environmental-and-social-schemes/warm-home-discount-whd/warm-home-discount-whd-reports-and-data). - Issue: [#502](https://github.com/PolicyEngine/policyengine-uk/issues/502).