Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Accepted
Government and suppliers launched campaigns to increase prepayment meter voucher redemption rates.
Conclusion
In response to our report, in January 2023, the government told us that energy suppliers had sent vouchers to all two million customers who had a traditional prepayment meter. It explained that it was urging customers to redeem vouchers through a communications campaign targeted specifically at traditional prepayment meter users, which included “posters, social media posts and radio broadcasts to ethnic minority radio stations in different languages, as well as communications direct from suppliers to customers”. It committed to monitoring voucher redemption rates, and to work with suppliers to ensure they were taking action to contact those with unredeemed vouchers and reissue lost vouchers.26 As part of its guidance for energy suppliers, in November 2022 the Department stated that it expects energy suppliers to take all reasonable steps to ensure the EBSS payment is both provided and delivered to prepayment customers.27 Suppliers must make a minimum of three attempts to contact customers who have not redeemed their vouchers. Vouchers expire after 90 days and can be reissued by the supplier on request. By January 2023, 98% of vouchers had been delivered to eligible households, either by text, email or post. All vouchers must be redeemed by 30 June 2023 – just over 90 days after the scheme finishes.28
Government Response Summary
The government agrees the observation is implemented, having monitored voucher payments, used data for focused communication campaigns, and observed improved redemption rates for prepayment meter customers.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 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. 2.3 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. 2.4 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. 2.5 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.