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Energy: Prices

Question for Treasury

UIN HL5936, tabled on 3 February 2022

To ask Her Majesty's Government what long-term arrangements they will put in place to assist (1) low-income households, and (2) pensioners on fixed incomes, to alleviate their domestic energy costs.

Answered on

10 February 2022

The Government recognises many households will need support to help deal with the rising cost of energy prices. Therefore, we are providing support worth £9.1bn in 2022-23 composed of:

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

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.

This 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.

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.

In the longer term, the Government will look to reduce our reliance on global gas prices by moving to a cleaner, more resilient energy system and improve energy efficiency to help keep bills down.

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