Government’s energy bills support took too long to get to those most in need, say MP

New Public Accounts Committee report calls on government to set out how it intends to be better prepared to support vulnerable consumers through any future energy market interventions

The Public Accounts Committee has found that the government's support for energy bills took too long to get to those most in need.

In a new report, Energy bills support, the Committee notes that –

'In autumn 2022, the government introduced support schemes for households through the Energy Bills Support Scheme (EBSS) and Energy Price Guarantee, and for businesses via the Energy Bill Relief Scheme. It also introduced additional schemes to support consumers not on conventional energy contracts, such as those living in park homes.'

However, the Committee finds that, while the government introduced the schemes quickly, its lack of understanding of customers’ circumstances meant that it took too long to get support to some of those most in need –

'The 836,000 households in Northern Ireland only began receiving support with their energy bills from the EBSS in January 2023, three months later than in the rest of the UK. Some 900,000 customers without a direct relationship to a domestic energy supplier, such as those in park homes or living on boats, had to wait until 27 February 2023 to be able to apply for the EBSS Alternative Funding Scheme, meaning that by March 2023, some consumers were yet to receive their payments.'

As a result, the Committee recommends that, in its response to the report, the government should set out how it intends to be better prepared to support vulnerable consumers through any future energy market interventions.

In addition, noting that a quarter of the EBSS vouchers issued to the two million households on prepayment meters had still not been redeemed as of February 2023, the Committee says that the government should set out what it will do to improve uptake.

Turning to next winter, the Committee also notes that household energy bills are expected to increase by another £775 in 2023/2024 and says that it expects an update on plans to ensure energy affordability during the winter months, including how the government will fix the problems for those most in need.

Committee Chair Dame Meg Hillier said today –

'The surge in energy prices has caused serious difficulties and hardship for households across the UK. It is of course welcome to see government moving quickly to put in place support for both households and businesses to keep the lights on. But many of those who most needed help were kept waiting longest for it. For some households, every day left without support presented impossible choices.

We need to see better understanding from government on vulnerable customers’ circumstances so that help can be prioritised for those who need it most, and to deliver value for money in these extremely expensive schemes. Almost halfway through the year we have not yet seen plans to ensure energy affordability for the coming winter. As a matter of urgency government must show it's clear not just on how households and businesses will be protected in any future price rises, but how to ensure resilience in the sector as a whole.'

For more information, see Energy bills support took too long to get to those most in need from parliament.uk