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Energy: Prices

Question for Treasury

UIN 118593, tabled on 4 February 2022

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of changing the repayable loan of £200 to assist households with increased energy prices into a non-repayable grant in the event that energy and gas prices continue to rise in 2023-24.

Answered on

14 February 2022

The Government recognises that many households will need support to help deal with the rising cost of energy. Therefore, the Chancellor of the Exchequer announced a package of support worth £9.1bn in 2022-23 on 3 February. This is composed of:

  • A £200 reduction in households' energy bills this autumn, paid back automatically over the next 5 years, spreading the cost of high global gas prices in a way that is more manageable for households.
  • A £150 non-repayable cash rebate for 80% of households to help with rising costs now, delivered as a payment to all households in Council Tax Bands A-D from April this year.
  • £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 in addition to the existing support measures that are helping those most vulnerable to heat their homes over this winter. These 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 – plus our £500 million Household Support Fund. 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.

The £200 reduction will be paid to all households and recouped over the next 5 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 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.

Answered by

Treasury