Urgent Alert for DWP Claimants as Scammers Target Benefits Scheme

Millions of benefit claimants in the UK are being urged to remain vigilant following reports of a new scam targeting individuals receiving financial aid. The Department for Energy Security and Net-Zero has issued a nationwide warning for those on six means-tested benefits, advising them to be cautious as scammers attempt to exploit a newly introduced energy bill discount.

From October 16, 2023, eligible claimants will receive letters informing them they qualify for a discount of £150 under the Warm Home Discount Scheme. This initiative aims to alleviate energy costs for low-income households by directly reducing the amount owed to energy suppliers. Importantly, the government has clarified that no cash will be handed out directly to claimants, which is vital information as the scam unfolds.

Scammers are reportedly sending fraudulent text messages and emails, falsely claiming that individuals need to apply to receive the discount directly. Victims of these scams could find themselves tricked into providing sensitive bank details, resulting in the theft of funds. The Department for Energy Security and Net-Zero emphasizes that there is no application process for this scheme, and any unsolicited communication regarding it should be disregarded.

The department has acknowledged an increase in scam attempts, reiterating that claimants should not engage with any messages requesting personal information. The fraudulent communications are designed to mislead recipients into thinking they must act to receive their entitled benefits.

The Warm Home Discount Scheme, which will now include an additional 2.7 million households, is set to benefit over six million households across Great Britain. Eligibility criteria stipulate that individuals must be the named bill payer and recipients of specific means-tested benefits, such as Housing Benefit, Income-related Employment and Support Allowance (ESA), Income-based Jobseeker’s Allowance (JSA), Income Support, Pension Credit, or Universal Credit.

Letters notifying eligible claimants will begin mailing from mid-October and will continue until December 2023. Residents in England and Wales who meet the criteria can expect clear guidance through this official communication.

In addition to the alert about scams, financial experts have shared practical tips for households to manage their energy bills effectively. Laura Court-Jones, Small Business Editor at Bionic, suggests simple measures such as:

1. **Lowering the thermostat by one degree**: This small adjustment can lead to significant savings, potentially reducing heating costs by approximately £171.70 annually.

2. **Switching off unused appliances and lights**: Turning off devices not in use can save households an estimated £20 on energy bills each year.

3. **Installing a smart meter**: These devices can help users monitor their energy consumption in real time, allowing for better management of usage.

4. **Considering energy supplier options**: Households are encouraged to review their energy contracts regularly to ensure they are receiving the best available rates, particularly after fixed-rate agreements expire.

As the October deadline approaches, the Department for Energy Security and Net-Zero continues to stress the importance of remaining vigilant against scams. By staying informed and cautious, claimants can safeguard their finances while benefiting from essential government assistance.