Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Not Addressed
Government implemented extensive £69 billion financial measures to support energy bill payers.
Conclusion
Over the course of 2022, the government announced £69 billion worth of measures to protect billpayers from price increases. In February 2022, it announced a £200 upfront reduction in customers’ bills from October 2022, which was expected to be repaid by customers over five years from April 2023. In May 2022, this became the Energy Bills Support Scheme (EBSS), with the government doubling the payment to £400 per household and removing the requirement for it to be repaid. In December 2022, it also created the equivalent scheme, Alternative Funding Scheme, for households without a direct relationship with an electricity supplier, such as those living in park homes and care homes.46 44 Qq 6–9, 42–43; C&AG’s Report, paras 1.2, 2.10 45 Qq 10, 18–20 46 Committee of Public Accounts, Energy Bills support, Fifty-Eighth Report of Session 2022–23, HC 1074, 16 June 2023, recommendation 1–2, para 3 18 Bulb Energy
Government Response Summary
The government's response describes existing and ongoing energy support schemes (EPG, cost-of-living payments, EBDS, WHD) for households and businesses. However, the original committee item was a descriptive statement of past government measures, not a recommendation, and the response does not address any specific implicit recommendations from it.
Government Response
Not Addressed
HM Government
Not Addressed
1.3 The government agrees with the Committee’s recommendation. Recommendation implemented 1.4 Energy prices have fallen significantly throughout 2023. In the near term, the Energy Price Guarantee (EPG) is still in place should prices exceed £3,000 and will remain so until the end of March 2024. Additional cost-of-living payments, worth up to £900, are also in place supporting the most vulnerable households. 1.5 The Energy Bill Discount Scheme (EBDS) will continue to provide support to non-domestic customers who have a contract with a licensed energy supplier until 31 March 2024 and who are not receiving additional support via the Energy and Trade Intensive Industries scheme. The EBDS also provides a higher level of support for heat networks with domestic end consumers. This aims to ensure that customers on heat networks do not face disproportionately higher bills. 1.6 The department expects over three million households to receive a Warm Home Discount (WHD) rebate during the winter of 2023-24 and the government continues to explore options to make the WHD more flexible. Households who meet the eligibility criteria then receive a rebate. The official statistics for the 2022-23 scheme show that in the winter of 2022-23, 95% of recipient households received their rebates this way, with the remaining 5% receiving their rebate following a claim to the associated helpline.