Revealed earlier this year by the Department of Energy and Climate Change (DECC), the Warm Home Discount scheme is a four-year initiative that runs until March 2015 to help low-income and vulnerable households with energy costs.
The scheme will be worth up to £1.1 billion over the next four years and it is expected around 2 million low-income and vulnerable households will be assisted annually.
The scheme will require participating energy companies to give a discount on electricity bills to a specified group of their older customers, known as the 'Core Group'. A rebate of £120 off electricity bills will be provided to older people where they pay their own bills and are in receipt of Pension Credit Guarantee Credit.
Although this is good news for many people, particularly those at risk this winter, the proposed ‘Core Group’ is relatively small and there have been recent discussions within the media about how much money is actually available from the energy companies. Speaking on the BBC Breakfast programme, Energy Minister Greg Barker said he wants to see them "rising to the challenge" after E.On, nPower and SSE announced they could not commit to give the discount to all those low-income customers eligible.
Households with disabled people or a child under five should qualify for the discount if they also get a means-tested benefit, such as income support or jobseeker's allowance. Up to 1.5 million might fulfill these conditions, but as the money for the scheme now appears to be limited, most firms have said they would pay on a first-come first-served basis.
That could mean individual energy companies limiting the payment to just a few thousand customers.
However it is possible to make similar monetary savings by installing home insulation – which in many cases could be completely free or severely discounted.
If you receive either Child Tax Credit under £16,190, Income based Jobseekers Allowance, Income Support, Disability Premium or Employment & Support Allowance then you are already eligible to receive loft and cavity wall insulation completely free of charge, installed by energy saving experts Solarwall.
According to the National Insulation Association the average household energy bill now totals £1,293 a year - almost double the amount of just five years ago. In many homes up to 60% of the heat generated is lost through uninsulated walls and roof spaces – a massive waste of both carbon and money. By installing insulation that meets with current regulations it is possible to reduce this loss and save an estimated £635 in fuel bills over the coming year.
Sue Lamb, Director of Solarwall, said: "Now is the perfect time to insulate your home. It has already been predicted that the coming winter will be harsh, and regardless of government schemes like the Warm Home Discount, it is always possible to improve the thermal efficiency your home in a cost effective manner. There is funding out there for lots of people – get what you deserve before the cold weather sets in."
Solarwall is a long-established home energy company based in York and servicing Yorkshire, Humberside, Lincolnshire and the North East. Solarwall of York provides cost effective energy saving solutions to reduce fuel bills, combat climate change and make homes warmer.
Since the company was founded over 33 years ago they have saved the local area over 1.5 million tonnes of CO². They have a commitment to quality and reliability and offer guarantees on all the work they carry out.
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