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Energy: Meters

Question for Treasury

UIN 117859, tabled on 3 February 2022

To ask the Chancellor of the Exchequer, if he will provide additional financial support to households with prepayment meters in response to the energy price cap increase announced on 3 February 2022.

Answered on

10 February 2022

The Government recognises many households will need support to help deal with the rising cost of energy prices and is providing support worth £9.1bn in 2022-23 including:

o A £200 discount for households delivered via their energy bill this autumn, paid back automatically over the next 5 years, spreading the increased costs of global prices over time in a way that is more manageable for households.

o A £150 non-repayable cash rebate to 80% of households to help with rising costs now, delivered as a payment from government to Local Authorities, for implementation from this April via a payment to all households in Council Tax Bands A-D.

o £144 million of discretionary funding for Local Authorities to support households who need support but are not eligible for the Council Tax reduction.

Domestic energy customers will receive the discount regardless of the type of payment method. The Department for Business, Energy and Industrial Strategy (BEIS) will work closely with industry and consumer groups on how best to deliver this policy, including through a public consultation in the Spring.

We have consulted on expanding the Warm Home Discount by almost a third from 2.2m to 3m vulnerable households and increasing the rebate value to £150 each year.

The Government is also providing £3bn over this Parliament to help more than half a million lower income homes become more energy efficient, saving them £290 per year on average, including through the Social Housing Decarbonisation Fund and Home Upgrade Grant.

Answered by

Treasury