Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Accepted
Significant regional disparities observed in energy support voucher redemption rates.
Conclusion
We asked witnesses about the take-up rates for the vouchers. The Department told us that 76% of vouchers had so far been redeemed across Great Britain. It accepted that take- up was lower in metropolitan areas, and that the take-up rate was just 60% in London.29 The NAO found that the Department believed that voucher redemption was likely to have been affected by a number of factors, including the weather (people might hold on to vouchers in anticipation of cold snap), voucher loss, and some people not opening their post.30 The Department told us that it thought that take-up in urban areas might also have been affected by changes in tenancy as it was more complicated to keep track of people in urban areas, particularly London. It explained that it had work underway to support this in the remaining weeks of the scheme. The Department told us that it will continue working to increase the redemption rates beyond the end of the scheme in April 2023.31 We asked what more government needed to do to ensure take-up of the vouchers. Citizens 24 Department of Energy & Climate Change, Understanding the behaviours of households in fuel poverty, July 2014 25 Committee of Public Accounts, Regulation of energy suppliers, Twenty-Fifth Report of Session 2022–23, HC 41, 13 November 2022 26 HM Treasury, Treasury Minutes Government Response to the Committee of Public Accounts on the Twenty-third to the Twenty-sixth reports from Session 2022–23, CP 781, January 2023 27 Department for Business, Energy & Industrial Strategy, Energy Bills Support Scheme – Guidance for Electricity Suppliers, November 2022 28 C&AG’s Report, para 3.13 29 Qq 161–163 30 C&AG’s Report, para 3.13 31 Qq 163–164 14 Energy bills support Advice told us that one in 20 people do not have the internet, and roughly one in 10 do not have some of the essential skills to engage digitally, so it would be important to ensure there are offline methods of delivering information about the vouchers.32
Government Response Summary
The government agrees the recommendation is implemented, detailing its close monitoring of Energy Bills Support Scheme voucher payments and its efforts, including targeted communications and a media campaign, which led to an increase in voucher redemption rates from 76% to 85%.
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.