Changes to energy bill discount scheme will discriminate against many disabled people, campaigners warn

Campaigners have warned a minister that the decision to change how the Warm Home Discount Scheme is funded will discriminate against disabled people with high energy needs.

Ministers decided last month to “rebalance” the costs of the scheme by moving them away from standing charges (a fixed daily charge paid by all energy-users) and placing the costs instead onto unit charges (which will see higher energy-users pay more).

Such a move is likely to benefit lower-income households because they tend to use less energy.

But the change will also mean that many disabled people will face higher energy bills because they often need to use more energy than non-disabled people in similar homes, for example to run vital medical and mobility equipment, or to keep warm for health reasons.

The discount scheme – which sees £150 taken off an individual’s electricity bills – is available in England, Scotland and Wales, but only to those on low incomes.

The Disability Poverty Campaign Group (DPCG) – led by Disability Rights UK (DR UK) and Inclusion London – has now written to energy consumers minister Martin McCluskey to ask him to redesign the scheme in consultation with disabled people and their organisations to ensure that those with unavoidably high energy costs are not penalised.

In the letter, DPCG says: “As it stands, the proposal threatens to prejudicially impact a group who are already at the brunt of the energy affordability crisis.

“Disabled people are almost twice as likely as our non-disabled peers to be unable to afford to keep our homes warm.”

DPCG also asks McCluskey in the letter to extend eligibility for the discount to those receiving personal independence payment (PIP), attendance allowance (AA), disability living allowance (DLA), and contribution-based employment and support allowance (ESA).

The government’s decision to alter funding of the discount scheme – set to take effect on 1 April – came in its response to a consultation that ended on 6 January.

In the response, the government said that recovering costs through unit rates was “a more progressive approach to funding the scheme”, although it accepted that “some households have high and unavoidable energy needs”.

But it also argued that “wider measures to reduce energy bills” announced in November’s budget meant the “net impact” on “typical consumers” would be a “significant reduction in costs”.

DPCG told the minister in the letter that, despite the department’s recognition of disabled people’s additional needs, the change “pushes the dial in the opposite direction, threatening to further widen the financial gap between Disabled and non-disabled energy consumers”.

Dan White, DR UK’s policy and campaigns officer and DPCG’s co-chair, said this week: “Shifting the levy for the warm home discount onto unit rates risks punishing disabled people simply for needing the energy that keeps us alive.

“Many disabled households rely on feeding pumps, ventilators, electric wheelchairs, hoists and heating for health reasons. These are not optional extras — they are essential.

“At a time when disabled people are already disproportionately in deep poverty and facing unaffordable bills, the government must not introduce reforms that make life even harder.

“Instead of loading costs onto those who use the most energy out of medical necessity, the government need to digest our asks, and action what we believe to be fair and just recommendations.”

Asked if the government would extend eligibility to those on PIP, DLA, AA and contribution-based ESA, the Department for Energy Security and Net Zero (DESNZ) had declined to comment by 11am today (Thursday).

But DESNZ said that, taking the change to the scheme alongside energy bill measures announced at last November’s budget, a gas-heated household with high usage due to medical needs could save £195 a year.

The government expanded the discount scheme to all households on means-tested benefits last year, and DESNZ said that its analysis (PDF) has suggested that more than two-fifths of people receiving disability benefits also receive a means-tested benefit, so could be eligible for the discount.

A DESNZ spokesperson said: “Tackling the affordability crisis is the government’s number one priority.

“That is why we are acting to bring bills down now and for the long term – taking an average of £150 of costs off energy bills from April.

“We are also acting to make our energy system fairer by bearing down on standing charges, which we know are a big concern for many households.

“Taken together, these changes will create cost savings for everyone, particularly benefiting those with high electricity use who are often in the greatest fuel poverty.”