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Energy Bills Rebate

Question for Treasury

UIN 126562, tabled on 21 February 2022

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of the £200 energy bill rebate on people that do not currently own a home but will be purchasing one within the next five years.

Answered on

1 March 2022

All domestic electricity customers in Great Britain will receive a £200 reduction in their electricity costs from this October. This will be delivered via energy suppliers and will be clearly identifiable as a line item on electricity bills.

To spread the cost of the reduction as widely as possible, all domestic energy consumers will pay a charge in future years. This will be reflected by Ofgem in the price cap for future years, and sufficient notice will be given to suppliers to price it into fixed and other tariffs.

There will be cases where changes in people’s personal circumstances mean they may not directly be the recipient of the reduction, but still pay charges in future bills, or vice versa.

The £200 reduction will help households manage the increase in energy bills by spreading the increased costs over a few years. The reduction will give households time for their finances to adjust rather than having to deal with the whole price increase up front, providing relief to millions of households.

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