logo
Ofgem fines Utilita over Warm Home Discount payment delays

Ofgem fines Utilita over Warm Home Discount payment delays

Glasgow Times18-06-2025
The regulator found Utilita – which supplies 800,000 customers – failed to pass on the mandatory discount to more than 4,000 customers over 2023 to 2024 because of an internal error in processing payments.
The Warm Home Discount scheme – which is administered by Ofgem on behalf of the Government – helps eligible energy consumers on low incomes by offering an automatic payment of £150 each year.
⚠️@utilitaenergy missed the 31.03.24 deadline to make Warm Home Discount payment by 12 days due to internal error. Utilita self-reported this to us last year
Affected customers have been contacted, don't need to do anything and will be auto-compensated
➡️https://t.co/tj55IR6qsp pic.twitter.com/3BJN7zPeEb — Ofgem (@ofgem) June 17, 2025
Ofgem said Utilita had agreed to pay £247,000 of compensation to those affected, who will receive further payments of up to £150 each.
This is in addition to £30,000 of compensation Utilita paid to affected customers shortly after the error was identified.
Cathryn Scott, regulatory director of market oversight and enforcement at Ofgem, says: 'The Warm Home Discount is a lifeline for vulnerable energy consumers on low incomes. Even a short delay in making these payments can cause harm to vulnerable customers, so it's vital that suppliers make these payments on time and without hassle.
'Unfortunately, on this occasion, Utilita fell short of our standards by failing to pay some of their customers in a timely manner. Utilita has conducted an audit of their Warm Home Discount processes to make sure this doesn't happen again.
'It's our duty to protect consumers. Today's outcome, as well as the findings set out in our Supplier Performance Report, serve as a reminder to all suppliers that failures to make scheme payments on time are unacceptable, and that we can and will take enforcement action to put things right for customers.'
Recommended reading:
A Utilita spokesman said: 'Due to an administrative oversight, we missed the March 31 deadline to process the Warm Home Discount payment for a small cohort of customers.
"All customers received their payment within 12 days.
'We sincerely apologise for any inconvenience this may have caused. We promptly reported our mistake to Ofgem and paid the impacted customers a goodwill gesture.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The government must ensure the promise of free childcare is delivered
The government must ensure the promise of free childcare is delivered

The Independent

time3 hours ago

  • The Independent

The government must ensure the promise of free childcare is delivered

Takeup of the government's offer of free childcare has been one-quarter higher than predicted, which has prompted some voices in the sector to warn of its imminent 'collapse', because it is unclear how the planned expansion of the scheme in September will be funded. Bridget Phillipson, the education secretary, in an exclusive interview with The Independent, says the unexpectedly high numbers signing up for the scheme is a 'good problem to have'. There is no doubt that there is a problem, however. The higher takeup meant that the Department for Education spent £2bn on the scheme in the last financial year, covering most of the first year of the Labour government, rather than the planned £1.6bn. That gap was covered by additional funding announced in the spending review in March, but as we report today, the Institute for Fiscal Studies estimates that the gap will continue to widen as the scheme expands. The next expansion will happen in September, when working parents with children aged nine months and older will be offered 30 hours a week of 'free' childcare. Of course, the care is not 'free' in that it has to be paid for by taxpayers generally – on the grounds that helping the parents of young children to work is a public good. As Ms Phillipson puts it: 'If people are able to work, or work a few more hours, that helps us all as a society as well and it gets economic growth going.' The funding of the scheme will continue to be under pressure, but the most important fact about the scheme so far is that it has not collapsed. The Independent was among those voices warning that it had been underfunded by the Conservative government, but to its credit the new government has increased the money available. The finances of the scheme may be stretched, and many childcare providers continue to say that they cannot recruit enough staff at the wages they can afford, but the gloomier warnings of chaos and thousands of parents left without places have not yet been borne out. It is crucial to remain vigilant as the scheme expands so that remains the case. At the insistence of Jeremy Hunt, the chancellor in the previous government, the scheme was designed to start small, with a limited offer of free hours to older children, before expanding gradually to provide full coverage. This September's expansion is the final stage of that planned rollout, which so far has gone more smoothly than we expected. If the last stage is a stretch too far and some parents cannot immediately find the places they want, that would be a blow to the government's ambitions. Ms Phillipson is right that the problem facing the scheme in its final phase is the problem of success. The higher-than-expected demand means additional pressure on the public finances in the later years of this parliament – pressure that coincides with other increased demands on Rachel Reeves, the chancellor, from slow growth, higher interest rates and a government U-turn on disability benefits spending. Providing greater access to free childcare is a good policy that will help working families. Its success and ambition should be applauded. The government must now make sure that its expansion is a success.

Charming English town is getting new £42million train station that will reopen key link shut for over 60 years
Charming English town is getting new £42million train station that will reopen key link shut for over 60 years

Scottish Sun

time4 hours ago

  • Scottish Sun

Charming English town is getting new £42million train station that will reopen key link shut for over 60 years

BACK ON TRACK Charming English town is getting new £42million train station that will reopen key link shut for over 60 years Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A RURAL English town has been given the green light for a new £42million train station that will reopen a vital link. After more than 60 years without a railway station, Cullompton has been granted funding by the Department of Transport and HM Treasury. Sign up for Scottish Sun newsletter Sign up 2 Cullompton has been given the green light for a new £42million train station Credit: Alamy 2 The new station will also be next to the motorway services at Junction 28 of the M5 Credit: Alamy The announcement is set to turbo-charge the economy of the Devon town and provide desperately needed transport links for locals and visitors. The funding will also help to support plans for a new station in Wellington. Cullompton station first opened in 1844 and closed in 1964. The reopening will be key to enabling the Culm Garden Village development, which will create around 5,000 homes. The new station will also be next to the motorway services at Junction 28 of the M5. Councillor Jacqi Hodgson, Devon County Council Cabinet Member for Climate Change and Biodiversity, said: 'Further investment in rail infrastructure in Devon is always welcome and this railway station for Cullompton is key to the town's economic growth and will help reduce carbon emissions in the county. "People need improved public transport options if they're going to be encouraged to change their travel habits. "Hopefully Cullompton could follow the success of Okehampton Station and the re-opening of the Dartmoor Line, which is a great example of what can be achieved given the necessary funding from government.' In April, a delegation of 30 people from the region travelled to London to hand-deliver powerful letters of support to rail minister Lord Hendy. Backed by a cross-party group of South West MPs and Wellington Town Council, the letters stressed how restoring rail links to both Okehampton and nearby Wellington could unlock major economic, social and environmental benefits. Lord Hendy said: 'The stations would contribute to sustainable development, connecting new residential areas with regional employment, education and healthcare opportunities. "The case for taking a combined approach presents significantly higher value for money compared with a stand-alone project in either area.' He added: 'Reopening Cullompton and Wellington stations would be a strategic investment aligning with the Government's goals to drive economic growth, reduce environmental impact and improve social mobility.' Economic growth Gideon Amos, who also backed the scheme, said: 'For the cost of around £42 million, £180 million of economic growth would go into the region — which I know the Government would want to see. 'Frankly, there is no other rail project in the south-west that is ready to go and could be built and completed in the next two years, as the project is so far advanced. 'In fact, had it not been for the review in July last year, the spades would be in the ground and the platforms under construction, because the contract was about to be let and the detailed design was almost finished.' And Labour MP Simon Lightwood added in the Commons: 'The strategic objectives are clear. "Enhancing public transport connectivity will support growth and productivity in Exeter, Taunton and Bridgwater, while also reducing road congestion, car dependency and carbon emissions.' He continued: 'The stations would contribute to sustainable development, connecting new residential areas with regional employment, education and healthcare opportunities." This comes as satellite images of a new £15million train station at Okehampton were revealed. The station, which will be the newest addition to the Dartmoor Line, connecting West Devon, Torridge and North Cornwall with Exeter and beyond, will also benefit education and leisure services in the region. GWR Regional Growth Manager David Whiteway said the project would provide "valuable support for the community and local economies". Satellite images show the rapid development of the £15million scheme, which is being funded by the Department for Transport with contributions from Devon County Council and West Devon Borough Council. Since work began in January, major progress has been made to create the new station on the edge of Okehampton, two minutes from the A30. In March, 300 metres of the single-line track was moved 90cm north to allow a new platform to be built alongside it.

Get early retirees off the golf course and back to work – why early retirement isn't good for UK plc
Get early retirees off the golf course and back to work – why early retirement isn't good for UK plc

The Guardian

time5 hours ago

  • The Guardian

Get early retirees off the golf course and back to work – why early retirement isn't good for UK plc

Early retirement is a wealthy indulgence that needs to be discouraged. As a minimum, ministers should strip away any inducement offered by the tax system for people who want to retire in their 50s. Every western country needs their more mature workers to keep going, if not full time, then part time. And if not paid work, then unpaid voluntary work that acknowledges the luck that flows from being a 21st-century baby boomer in good health. Communities, regions and countries cannot afford for older people to pack up and head for the golf course, or worse, book a permanent cruise and spend their cash in international waters. Last week, the government convened a pensions commission to consider a narrow question: how to boost the incomes of lower-paid workers in retirement. It is understandable that the government is worried about the increasing numbers of low-income workers who will soon spend a long retirement struggling to make ends meet. This is a genuine concern and a subject worthy of a commission. Yet there is a need to address a far wider question, which is how society will thrive when the age pyramid is inverted, with only a smattering of young people holding up a mountain of retirees. Retirement has its origins in the Industrial Revolution and the need to prevent older people from ending their years in abject poverty, not to fulfil a bucket list of expensive desires. The commission should ask why anyone in the 21st century should think they can put their feet up seven days a week when they are fit and well, and able to participate in economic life. Yet a prosperous retirement is the aim of so many – and not only when they are approaching their 60s. If you look at the strike record of full-time university lecturers you would think they obsess about their pensions every day. Council staff spend precious hours scrolling through WhatsApp groups discussing the most mundane changes to their retirement plans with a degree of attentiveness that, to give them credit, is in line with the generosity of their benefits. Company boardrooms are no different. Executives will set aside huge amounts of time to manage their complex and stunningly generous pensions. Having a financial consultant ready and available on the phone to talk about their retirement plans has become a must-have demand in the corporate world. Maybe its the lure of sailing on the Adriatic or cruising the Caribbean that captivates so many, or less positively, the frustration and anxiety from working near, with or for incompetent or venal managers in a succession of modestly paid jobs. Still, whatever the reason, too many people want to cash out of the economy, trading their pension and property gains for a long period of rest, with only the stress of remembering what day it is to bump their heart rate. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Some economists have argued that this moment – when boomers are no longer participating in the workplace – will trigger a profound shift in the economy. Those workers still in the labour market will bid up their wages, pushing up prices and making high inflation a permanent feature. Governments will find it harder to borrow money, in part because pension funds, after decades of growth, will have a declining need to buy their bonds. There are also extra bills to pay. In its latest report on the UK, the International Monetary Fund says the effects of population ageing on health and pension costs will account for a further 8% of GDP by 2050 compared with an extra 5.5% of GDP, on average, in other advanced European economies. These are important issues connected with the nation's finances. So, too, are the ways better-off baby boomers insulate themselves. First, they take most of the pension money and invest it abroad where the gains are much higher, either because their workforces are young, dynamic and more productive or because the companies are American and enjoy monopolistic strangleholds in their respective markets. Investing abroad gives the boomer a ring-fenced income no matter how clapped out the economy they call home. The second track is to import young workers from abroad, boosting the labour supply as boomers make their exit. Financial insulation is understandable when government finances are under strain. Yet one of the reasons the wheels are coming off the modern liberal state is because baby boomers, who by sheer force of numbers and their better education spurred the postwar recovery, are causing the downturn by bailing out. Worse, they are cashing out, too. Without a debate about what it means to be old and the responsibilities that come with receiving a pension, the government's commission will be left to merely tinker. We are only a few years away from the baby boomer generation all reaching retirement age. Everyone born in the years up to 1964 will be eligible to collect the state pension in 2031. It's a turning point that everyone should be preparing for, especially when all the Pimm's-drinking early retirees are added to the list. The commission's remit should be wider.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store