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Energy Bills Rebate: Repayments

Question for Treasury

UIN HL5935, tabled on 3 February 2022

To ask Her Majesty's Government what steps they will take to repay the rebate announced to help alleviate household energy bills; and what assessment they have made of the impact on households as a result of such repayment.

Answered on

10 February 2022

In recognition of the increase in energy costs and the impact this will have on households, the Government is providing significant financial support – up to £350 – to the majority of households. One element of this is a £200 discount for households delivered via their energy bill this autumn.

We expect households will pay back the discount from 2023 – when energy prices are expected to be lower - through an increase to standing charges on their bills of around £40 per annum over five years.

This approach is fiscally responsible while also helping customers manage the unprecedented increase in energy bills by spreading the increased costs of global prices over time. The policy will provide a significant discount to bills this year whilst gas prices are at historic highs.

The government will explore this issue through a public consultation run by the Department for Business Energy and Industrial Strategy (BEIS) in the spring.

This policy is on top of wider support available for vulnerable households, elderly and low-income people this winter. These schemes include the Warm Home Discount, which is being expanded to 3m people and increased to £150, up to £300 Winter Fuel Payment for all households with at least one member above State Pension age and a £25 per week Cold Weather Payment. These measures will help ensure those most vulnerable are better able to heat their homes over the winter.

There is also our £500m Household Support Fund which will help vulnerable households, including pensioners, with the costs of essentials this winter – local authorities will ensure it reaches those who need it most, and 50% of the funding is ringfenced for households with children.

In addition to these measures, we’re 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.

Answered by

Treasury