Recommendation 19

HM Government Acknowledged

In the Energy White Paper, Government set out its goal to ensure that energy bills are affordable and that households in fuel poverty are not left behind in the transition to a net- zero future. We agree that energy efficiency improvements provide the most sustainable long-term solution to fuel poverty, and Government has a statutory target to ensure as many fuel poor homes as reasonably practicable achieve a minimum energy efficiency rating of Band C by 2030. However, improving energy efficiency takes time, and there is continued recognition in both the Energy White Paper and the recently published Sustainable Warmth strategy that some households are in need of additional, immediate support. This is why we continue to promote a range of measures to tackle fuel poverty, including energy bill rebates delivered through the Warm Home Discount scheme. The Warm Home Discount is a key policy in Government’s programme to tackle fuel poverty and the effects of rising energy prices on low-income households. As noted by the Committee, the scheme helps over 2 million low income and vulnerable households each winter with their energy costs. A total of over £3 billion of direct assistance has been provided to low income and vulnerable households in the ten years since the scheme began, largely through the provision of energy bill rebates, now worth £140 for each household. These rebates are designed primarily to help households struggling with energy costs. Rebates are delivered through energy suppliers and, in most cases, they are applied to a customer’s electricity or gas bill directly. The Government has committed to expanding the Warm Home Discount scheme, increasing the total spending envelope to £475 million per year (in 2020 prices), thereby supporting more households with the costs of heating their homes. The Government will consult on proposals to improve the fuel poverty targeting of the scheme, directing the support to those who need it most. energy suppliers to better identify those most suitable for assistance under ECO. In addition to rebate provision, in the 2019/20 scheme year, over £37m of Industry Initiatives were delivered through the Warm Home Discount. As part of this, over £12.4m (or 33.6%) was spent by energy suppliers on a range of energy efficiency measures targeted at fuel poor households. These measures include thermal efficiency improvements, energy efficient appliances or micro generation, as well as energy efficiency advice. These packages of measures provide vital financial and non- financial sources of support for households in, or at risk of, fuel poverty. 14 Energy efficiency of existing homes: Government Response