Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Accepted
Publish analysis of unredeemed energy vouchers and actions to increase household redemption rates.
Recommendation
The Department is still not doing enough to ensure that support reaches the two million consumers on prepayment meters. Those on prepayment meters are typically on more expensive energy tariffs due to the cost of the systems used to run the meters. Two million households in Great Britain on traditional prepayment meters need to redeem vouchers to claim their £400 payment through the EBSS. These consumers tend to be poorer and are more likely to be in arrears on their energy bills and can be unaware of national and local initiatives to reduce fuel poverty. As we warned in November 2022, however, some vulnerable customers, such as those on prepayment meters, faced extra challenges in accessing the support designed to help them with their bills. By the end of January 2023, 76% of vouchers issued to households to support them with their energy bills had been redeemed. The Department is working on increasing this figure, although the responsibility of ensuring households on prepayment meters redeem their vouchers also sits with suppliers. We are concerned that recent media coverage has also brought to light unacceptable practices of suppliers forcing entry into vulnerable customers’ homes to install prepayment meters, often as a result of consumers falling behind on payments. Recommendation 2: The Department should set out, as part of its Treasury Minute response, its analysis of which groups of households have not redeemed their vouchers and what further action it will take to increase the redemption rate of vouchers. 6 Energy bills support
Government Response Summary
The government provided analysis identifying low voucher redemption in urban areas, socially rented properties, and ethnic/multicultural areas. It took further actions including focused communications, coordinated media campaigns, and a ‘National claim your voucher day’, which improved redemption rates from 76% to 85% by May 2023.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The government has closely monitored Energy Bills Support Scheme (EBSS) voucher payments to traditional prepayment meter customers in Great Britain and published data regularly. Supplier data has provided detailed geographical understanding of areas with low voucher up-take. Lowest redemption is seen in urban areas, with 9 out of the 10 local authority areas with lowest up-take in London. Postcode sector level data provides insight into the types of households likely to be found in each area. A higher proportion of customers with unredeemed vouchers live in socially rented terraced properties or flats, or in primarily ethnic and multicultural areas. This understanding enabled focused communications efforts on areas and at demographics with most impact. Government and supplier communications campaigns have encouraged voucher up-take throughout delivery. A further, coordinated media campaign was launched at the end of May. ‘National claim your voucher day’ was supported by suppliers, charities and consumer groups. Voucher redemption rates improved from 76% at the end of January 2023 to 85% at the end of May 2023. In Northern Ireland, support was delivered through a single cash payment, due to the high usage of heating oil. Thus, scheme design and the nature of the electricity market meant that voucher redemption has been less of an issue and rates rapidly rose to in excess of 90% shortly after launch. On that basis, additional specific analysis has not been conducted.