Source · Select Committees · Public Accounts Committee

Recommendation 3

3 Accepted

Develop strategies for next winter to support consumers at greater risk of fuel poverty.

Conclusion
The Department has not done enough to address the challenges of providing financial support to vulnerable consumers in the event of another crisis. The Department reported that between mid–2022 and mid–2023 the Energy Price Guarantee (EPG) and Energy Bills Support Scheme (EBSS) prevented around 289,000 households in England from going into fuel poverty. However, this was not enough to offset the wider impact of soaring energy prices, which still pushed an estimated 238,000 more households into fuel poverty overall. At the same time, take–up of the scheme supporting households without a domestic electricity supply, such as those in care homes and park homes, was low—only 18.2% in Great Britain and 19.1% in Northern Ireland (of the Department’s provisional estimate of eligible recipients). While the Department worked with local authorities on some schemes to identify vulnerable consumers, the low take–up suggests that this approach did not fully reach all those in need. The Department says it channelled funds via social landlords, but gaps in communication and data tracking meant some eligible tenants were still missed. The Warm Homes Discount, an existing support scheme that the Department expects will mitigate high energy prices this winter, excludes some groups who are more exposed to high energy costs like certain people with disabilities whose costs can be 25% higher than those without disabilities. recommendation The Department should, in time for next winter, develop strategies for providing financial support to consumers at greater risk of fuel poverty. These strategies should consider how to work with organisations with helpful insights, such as registered social landlords.
Government Response Summary
The government has consulted on expanding the Warm Home Discount scheme, which is estimated to reach an additional 2.7 million households, and is considering options for better targeting of future bill support.
Government Response Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. fuel poor households with an annual energy bills rebate of £150. The government has consulted on expanding eligibility in England and Wales to all households where the bill payer (or their partner or nominee) is in receipt of means tested benefits, with a proportionate increase in the funding available through the Scottish scheme. Under the expansion, it is estimated that 1.6 million fuel poor households across Great Britain would receive the rebate, representing an increase of around 500,000 compared to the current scheme. In total the expansion of the scheme is estimated to reach a further 2.7 million households. The department is considering options for better targeting of bill support schemes, including in the event of a future energy crisis. DESNZ is working closely with other government departments to unlock the data that will enable targeting support more effectively to those who need help with their energy bills. The department is working with relevant stakeholders, including advocacy charities, to inform this work. Ministers regularly meet with a range of stakeholders to discuss fuel poverty strategy, and this has included the National Housing Federation.