Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Not Addressed
Improve administrative processes to increase energy bill support voucher redemption rates for vulnerable customers.
Recommendation
We examined the government’s support for customers’ and businesses’ energy bills in November 2022 and June 2023. We concluded that many vulnerable customers faced extra challenges accessing benefits designed to help people with their energy bills. We also found that the Department was not doing enough to ensure that support was reaching some of those most in need, for example the two million consumers on prepayment meters who needed to redeem vouchers to claim their payment through EBSS. We recommended that the Department identify and address any administrative issues that were preventing people from access the support available to them, and that it should set out how it would increase the redemption rate of vouchers.47 When we examined the energy bills support being provided by the Department in June 2023, we found that 76% of vouchers issued to eligible households across Great Britain to claim their £400 payment through the Energy Bills Support Scheme had been redeemed. Uptake was lower in metropolitan areas, with take-up being just 60% in London.48 We therefore asked witnesses how many customers had now redeemed their £400 energy voucher. Ofgem explained that it was using multiple approaches to reach the remaining vulnerable customers including notices through the post, publicity campaigns and having energy companies proactively contact the remaining customers to ensure they took up the support.49 Following our evidence session, Ofgem wrote to us on 14 June 2023 to notify us that the region with the highest uptake of the energy vouchers as of May 2023, was the East Midlands at a redemption rate of 80% while the lowest, London, had an uptake rate of 68%. The total rate across all regions was 76%.50
Government Response Summary
The government states it agrees and that the recommendation is implemented, but its response describes ongoing general energy support schemes like the EPG and Warm Home Discount. It does not specifically detail how it has addressed administrative barriers or increased the redemption rate for past energy vouchers as explicitly recommended.
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.