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Energy: Debts

Question for Treasury

UIN 117863, tabled on 3 February 2022

To ask the Chancellor of the Exchequer, if he will increase funding to help households who have outstanding energy and electric debt.

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.

This is on top of wider support for vulnerable households, elderly and low-income people this winter through the Warm Home Discount (which is being expanded by a third to 3m people and increased to £150), up to £300 Winter Fuel Payment and £25 per week Cold Weather Payment, which help ensure those most vulnerable are better able to heat their homes. Our £500m Household Support Fund will also help vulnerable households with the costs of essentials over the winter.

For consumers with existing debt with their energy supplier, the Government will explore how the rebate can lower their bills from October, while supporting their repayment plans, through a public consultation run by the Department for Business Energy and Industrial Strategy (BEIS) in the spring.

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