Energy Bill Discount Scheme

(asked on 7th February 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the amount that a household of two people would receive from the energy bill discount scheme in 2022-23; what estimate he has made of the amount that they would pay in (a) 2022-23 and (b) in each of the next five years in respect of the increase in standing charge in the event that they subsequently split into two households of one person from the financial year 2023-24 onwards.


Answered by
Helen Whately Portrait
Helen Whately
Minister of State (Department of Health and Social Care)
This question was answered on 10th 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 the £200 reduction for every electricity customer in Great Britain delivered via their energy bill this autumn.

We expect households will pay this back 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 reduction to bills this year whilst gas prices are at historic highs.

There will be cases where changes in people’s personal circumstances at the time mean they may not directly be the recipient of the reduction, but still see increases in future bills. The government will look at these issues further through a public consultation run by the Department for Business Energy and Industrial Strategy (BEIS) in the spring, but to spread the cost of the reduction as widely as possible, all domestic energy consumers are expected to contribute to future repayments.

Reticulating Splines