Fifty-Eighth Report - Energy bills support

The government provided analysis identifying low voucher redemption in urban areas, socially rented properties, and ethnic/multicultural areas. It took further actions including focused communications, coordinated media campaigns, and a ‘National claim your voucher day’, which improved redemption rates from 76% to 85% by May 2023.

The government plans a second REMA consultation in Autumn 2023, with overall timescales varying by reform complexity. It explains REMA will consider options to shield consumers from price spikes and notes the Contracts for Difference (CfD) scheme already provides insulation.

The government agrees that the recommendation has been implemented, explaining it closely monitored Energy Bills Support Scheme voucher payments, published data, and conducted focused communications and a media campaign to improve redemption rates for prepayment meter customers from 76% to 85%.

The government agrees, stating that teams working on energy support schemes have transferred to the new department to ensure lessons learned are not lost. It describes how experience is being used to improve future delivery and how lessons are captured and shared through individual schemes and a cross-cutting exercise. The response does not address fraud and error rates.

The government states it will keep the Energy Price Guarantee (EPG) in place as a safeguard for winter 2023-24 and continue the Energy Bills Discount Scheme (EBDS) for non-domestic customers. It has also committed to £900 in cost-of-living payments for vulnerable households and decided not to cap support for high energy users, keeping the EPG universal.

The government agrees with the observation, stating the price cap is now £2,074 for Q3 2023 and is forecast to fall. It confirms the Energy Price Guarantee (EPG) will remain a safeguard over the coming winter and outlines existing cost-of-living payments, while deciding not to cap support for high energy users to maintain universal access.

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.

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%.

The government agrees, stating it takes fraud and error risks seriously and is continuing proactive work with the Public Sector Fraud Authority to detect and reduce instances, and will work with external scrutiny providers to provide the Committee with latest estimated rates.

The government agrees, confirming its ongoing efforts to detect and reduce fraud. It further commits to writing to the Committee by the end of 2023 to outline how lessons learned from the energy schemes will be preserved and shared for future delivery.

The government agrees with the observation, affirming its serious approach to fraud and error risks. It commits to continuing proactive work to detect and reduce fraud and error, and will work with external scrutiny providers to provide the committee with the latest estimated rates.

The government agrees with the observation, affirming its serious approach to fraud and error risks and its ongoing proactive work to detect and reduce instances in energy affordability schemes, promising to provide estimated rates.

The government agrees with the committee's observation, affirming its serious approach to fraud and error risks in the schemes. It commits to continuing proactive work to detect and reduce fraud and error, and will work with external scrutiny providers to provide the committee with the latest estimated rates.

The government, perceiving an implicit recommendation, states it agrees and has implemented it. It outlines that HM Treasury carefully considers tax system impacts, DESNZ will publish monthly EBDS discount scales, and an evaluation of energy support schemes is being commissioned, with findings due by summer 2025.

The government, perceiving an implicit recommendation, states it agrees and has implemented it. It details ongoing actions including reviewing the tax system, engaging with stakeholders, and commissioning an evaluation of the Energy Bill Discount Scheme and Energy Bill Relief Scheme.

The government, perceiving an implicit recommendation, states it agrees and has implemented it. It outlines its commitment to reviewing the tax system and reliefs, engaging with stakeholders, and commissioning an evaluation of the energy support schemes, confirming that the EBDS will provide a discount for 12 months.

The government agrees with the conclusion, stating the price cap is £2,074 for Q3 2023 and prices are forecast to fall. It confirms the Energy Price Guarantee (EPG) will remain a safeguard over the coming winter and the Energy Bill Discount Scheme (EBDS) will continue for non-domestic customers until March 2024.

The government states it agrees with the committee's implied recommendation and commits to publishing a second REMA consultation in Autumn 2023, with a target implementation date for this step by Autumn 2023. It will also take quicker decisions on shorter-term reforms, while acknowledging that the overall REMA timescale depends on reform complexity.