DECC Consultation on the Warm Home Discount Scheme 2016/17

[ALEO Admin]

The Department of Energy and Climate Change (DECC) are now consulting on the Warm Home Discount Scheme 2016/17.

The consultation, issued on 8 April 2016, sets out government proposals for changes to the scheme for tax year 2016 to 2017 and also seeks views on some aspects of the scheme after 2016/17, including who will receive the rebate in future scheme years.

DECC have also published an accompanying Impact Assessment, which sets out the impact of the changes for 2016/17 and provides an overview of the costs accompanying the scheme.

The deadline for responses is 6 May 2016.

The Executive Summary of the consultation document states:

Should Government obtain wider data sharing powers, this could pave the way for the Warm Home Discount providing all direct energy bill rebates using data matching from 2017/18. Until that time, we are proposing to keep the Core and Broader Group elements of the scheme unchanged for 2016/17. That would mean that all eligible pensioners on Pension Credit Guarantee Credit would continue to receive £140 off their bills. Under the Broader Group, suppliers would continue to provide £140 rebates to eligible low income and vulnerable households who successfully apply.

We are also proposing to continue the Industry Initiatives element of the scheme where we are proposing some changes in 2016/17. Firstly, we are proposing a cap on the total proportion of its spending each supplier can use on debt assistance (last year suppliers spent over 70%). We are also proposing to enable organisations which create innovative schemes to alleviate fuel poverty to bid for industry initiatives funding. This will enable innovation in how the most vulnerable are identified and helped as well as providing a simple way for suppliers to meet their obligations.

In addition, we are proposing to make small operational changes this year which would allow rebates off gas bills and better reflect final spending on rebates for prepayment meter customers. Finally, we are seeking initial views on the future of the Warm Home Discount beyond 2016/17, including on the participation threshold for suppliers.

To download the full consultation document and impact assessment, visit:
https://www.gov.uk/government/consultat ... eme-201617

[ALEO Admin]

ALEO will be providing a national response to DECC's consultation on the Warm Home Discount (WHD) Scheme and we would very much like to hear your views.

You can provide comments, either by posting to this forum or emailing the ALEO National Secretariat rob.leeson@aleo.org.uk. Your comments can be related to any of the specific consultation questions or more general views. We would also be interested to hear from you if you are providing your own response to the consultation, and we would be pleased if you would like to send a copy of your response to us.

The consultation deadline is 6 May 2016; however, we would like to hear your views by Friday, 29 April, please, to allow time for us to incorporate them into our response.

Please refer to Ofgem's full consultation document, which is available from https://www.gov.uk/government/consultat ... eme-201617

The consultation questions are as follows:

Question 1: Do you agree that the Core Group eligibility criteria should be retained for those people in receipt of Pension Credit Guarantee Credit in 2016/17?

Question 2: Do you agree that we should keep the Broader Group element unchanged?

Question 3: Do you agree that the value of the rebate should be £140 in 2016/17?

Question 4: Do you think the current range of activities that count as Industry Initiatives represent value for money? Are there any other activities that should qualify as Industry Initiatives that currently do not? Are there any activities that currently count
as Industry Initiatives that you think should not? Please provide evidence to support your answers.

Question 5: What are your views on suppliers having the option to achieve part of their Industry Initiatives spend through contribution to a central pot of funding in future years, which could then be used to fund innovative approaches to reaching and supporting those in greatest need?

Question 6: Do you agree that Government should place a cap on the amount of each supplier’s Industry Initiative spend that can be spent on debt assistance? What are your thoughts on the cap being set at 50% of each supplier’s Industry Initiative spend in 2016/17?

Question 7: Do you agree that there should be no provision for any overspend to reduce future non-core obligations?

Question 8: Should spending targets be adjusted so that actual spending reflects the number of PPM customers benefitting from the rebate?

Question 9: Do you foresee any issues with the scheme year for 2016/17 running from August to May?

Question 10: Do you foresee any issues or risks associated with allowing suppliers to start Industry Initiative activities before the regulations are in place?

Question 11: Do you foresee any issues with suppliers having the option to pay the rebate on customers gas accounts?

Question 12: If the scheme is made cheaper to deliver from 2017/18, should the participation threshold be reduced below 250,000 domestic customer accounts? What would be the costs and benefits of such a change?

[ALEO Admin]

The Association of Local Energy Officers has now responded to the DECC consultation on the Warm Home Discount Scheme 2016/17.

Many thanks to all those who sent in comments for this.

ALEO's full consultation response is available to download from
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