Warm Home Discount Broader Group Eligibility Criteria

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Dear Office of Gas and Electricity Markets,

I understand that Ofgem E-Serve have responsibility for approving a supplier's eligibility criteria for the broader group.

According to The Warm Home Discount Regulations 2011 Reg. 19(5) as amended, the criteria set out in Schedule 2 to those regulations are compulsory.

These criteria include people receiving child tax credit "by virtue of an award which is based on an annual income not exceeding £16,190", as stated in Paragraph 5 of the above Schedule.

This definition clearly relies on the calculation of income made by tax credits. Tax credits do not include Working Tax Credit as income when calculating a claimant's annual income.

However, after carrying out some research, I have found that many energy companies, both online and on the phone, say that a potential claimant must be earning less then £16,190 including WTC.

For example, see note 4 right at the bottom of this page: https://www.britishgas.co.uk/energy/ener...

Another example is page 4 here: https://cdn.first-utility.com/wp-content...

Please can you provide me with any information you hold showing that you are fulfilling your duty to only approve a supplier's criteria for eligibility to the Broader Group when those criteria include all the descriptions in the legislation.

This would include the submissions made by Britsh Gas and First Utility (for example) showing compliance with the Regulations. Alternatively, legislation or guidance showing that WTC can be included as income when calculating a claimant's annual income.

Yours faithfully,

Charles Ellinson

FOI, Office of Gas and Electricity Markets

3 Attachments

Dear Mr Ellinson

 

Thank you for your request which is acknowledged under reference
FOI-EIR-5-2018.  We will respond within 20 working days.

 

Kind Regards

Hayley Marsh

 

Hayley Marsh

Consumer Contacts and Information Rights

Communications

9 Millbank

London

SW1P 3GE

[1]www.ofgem.gov.uk

 

 

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FOI, Office of Gas and Electricity Markets

Dear Mr Ellinson,

Thank you for your email regarding eligibility criteria for Warm Home Discount (WHD).

Suppliers provide submission prior to opening their broader group. Within this submission there is a confirmation that they will include the mandatory criteria, as well as detailing any additional criteria they wish to use. We assess compliance at the end of the scheme year, both by requiring suppliers to submit returns and through an audit programme conducted by a third party. Further details can be found in our guidance to suppliers, which can be found here: https://www.ofgem.gov.uk/system/files/do...

In respect of the specific suppliers you highlight, the suppliers should be using the “relevant income” as defined in the Tax Credits Act 2002. We will contact obligated suppliers, including those highlighted below, to ensure they are acting consistent with this requirement. Any non-compliance will be considered as part of the year end process.

I trust this answers your question, but please contact [email address] should you wish to discuss matters further.

Kind regards,

Sarah Methven
Customer Contact and Information Requests
9 Millbank
London
SW1P 3GE
www.ofgem.gov.uk

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