Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether she is considering the potential merits of introducing an Essential Energy Guarantee to lower energy bills for households.

Tackling the cost of living is a priority for this Government. The measures announced at the Autumn Budget on 28 October provide breathing space for families and businesses, particularly with energy costs.

The Government is extending the VAT cut on qualifying domestic electricity supplies until July 2027, which is expected to ensure the annual Ofgem price in April 2027 remains around £50 lower than it would otherwise have been.

The Government is also launching a £2.6 billion Household Energy Payment, which will provide a £100 payment directly into bank accounts from January 2027 for households in England in council tax bands A-D, supporting up to 20 million households. Devolved Governments will receive their share of this additional funding through the Barnett formula.

These measures accompany other forms of support, such as the Warm Home Discount, which supports 5.7 million households.

The Government will continue to explore ways to support households with the cost of living. A key part of this is making better use of data across the public sector, allowing support to be better targeted to those who need it most. DESNZ is working with other Government departments to improve the use of data in targeting support.