Energy Bills Support Scheme Archives - End Fuel Poverty Coalition

Poorest constituencies missing out on support for energy bills

New analysis of Government data by the End Fuel Poverty Coalition has revealed that some of the poorest constituencies in the country had some of the highest levels of undelivered or unredeemed payments through the Energy Bills Support Scheme. [1]

Westminster Constituency-specific data shows that some of the constituencies with the highest levels of child poverty were the least likely to get the full amount of support payments that they were owed.

In Brent Central, where more than a third of households with children are in poverty [2], more than one in twenty (6.18%) of vouchers were not delivered or redeemed.

Meanwhile in Liverpool Riverside, more than 22,000 (5.19% of payments) were not processed, even though more than 7,000 families are in poverty.

The latest UK-wide figures show that millions of pounds worth of support has not made it to the households that it was meant for, with the majority of that due to those on prepayment energy meters (PPMs).

In the constituency of Hampstead & Kilburn, 43% of vouchers issued to PPM households have not been redeemed. And while the problem is worst in London, other places across England have also been hit hard. In Bradford West, a third of vouchers are still to be claimed, in places such as Preston or Pendle, the figure is 29%.

Scotland’s voucher redemption rate (26% left unclaimed) is worse than everywhere else in the UK apart from London (32%). Constituencies such as Edinburgh East, Edinburgh North & Leith, Glasgow North (all 36%) and Inverclyde (35%) all have low take up rates.

The government provided households across the country with £400 of energy bills support from October 2022 until March 2023 through the Energy Bills Support Scheme. For traditional prepayment meter customers, this support came in the form of vouchers delivered monthly by text, email or post.

The deadline to collect any missed payments is 11.59pm on 30th June.

A spokesperson for the End Fuel Poverty Coalition, which is part of the Warm This Winter campaign, commented:

“Far too often support payments under this scheme have not found their way to vulnerable households. There is now less than a week to go before this support will be lost to households forever.

“If anyone feels they have missed out on Energy Bills Support Scheme payments they should contact their energy firm immediately.”

Frazer Scott, CEO of Energy Action Scotland commented “Over 1 in 3 households in Scotland are in fuel poverty and are struggling to access heat and power to maintain their health and wellbeing. Energy debt levels are rising yet vital support is not reaching people. Legacy prepayment meter households should be receiving the support to which they are entitled. It isn’t right and it isn’t fair that so many voucher remain unredeemed.”

Jonathan Bean of Fuel Poverty Action said: “As usual in our cruel energy system, those that need the help most are not getting it. Government and energy firms are failing vulnerable people again. Extra time and effort is needed to sort out this mess.”

ENDS

[1] End Fuel Poverty Coalition analysis of official Government data published on 20 June 2023. All data is available to download from: EFPC EBSS Calculations energy-bills-support-scheme-gb-payments-june-2023

[2] End Child Poverty Coalition / Loughborough University data https://endchildpoverty.org.uk/child-poverty/

Public urged to claim energy bills vouchers before June deadline

The government is urging UK energy customers with a prepayment meter (PPM) to redeem any unclaimed Energy Bill Support Scheme vouchers before they expire at the end of June.

Claim Your Energy Voucher day takes place on May 31, and marks one month until unredeemed vouchers are due to expire.

Previous data revealed that in some areas of the country more than 1 in 20 payments were not delivered or claimed during the scheme.

The latest government data shows that energy firms still owe £130m to households through unredeemed PPM vouchers.

A spokesperson for the End Fuel Poverty Coalition commented:

“We’ve been calling on the government for some time to rectify this situation and ensure that every household receives the support that they are owed.

“We are delighted that they are listening, and we urge every PPM customer to double-check that they received and redeemed their full £400 in vouchers during the scheme.”

The Government advises that if customers have their vouchers already, they must take their ID and vouchers to a Post Office or Paypoint to redeem them before June 30.

Those on a traditional prepayment meters who have not received the vouchers, or are unsure of how to redeem them, or need a voucher to be reissued, should contact their energy supplier.

Households using prepayment meters who use alternative fuels such as LPG, heating oil or biomass as the main way they heat their homes also have until June 30 to use their vouchers worth up to £200 in energy bills support.

Other households who are due support through an “alternative method” (such as those in park homes or on care home complexes) have also to apply for the scheme, with the Mirror revealing that just 13% of eligible households had applied.

Energy Bills Support Scheme gaps hit areas of high fuel poverty

New analysis of Energy Bills Support Scheme (EBSS) data reveals that in some areas of the country more than one in twenty payments were not delivered or vouchers left redeemed.

Regional data from the first five months of the scheme has revealed the areas with the highest rates for missed payments are some of the areas hardest hit by fuel poverty.

These include the London Borough of Brent where 6.62% of payments have not been delivered or redeemed, Birmingham (4.68%), Stoke (4.00%), Wolverhampton (4.26%), Coventry (3.86%) and Sandwell (4.21%).

Rural areas are also hit with poor delivery rates, such as Na h-Eileanan Siar (4.86%), Pendle (4.28%) and even Rishi Sunak’s own backyard of Richmondshire (4.08%, which equates to £285k still owed to his constituents by energy firms).

In Scotland, the Herald reports that that the value of these missed payments tops £29m. In cities like Birmingham, Glasgow and Leeds, the value of these missed payments are over £4m a piece.

Data for the full scheme also reveals that energy firms still owe £241m to households through the support scheme, a majority of that being through unclaimed PPM vouchers with new figures expected to be published next week.

A spokesperson for the End Fuel Poverty Coalition, which is part of the Warm This Winter campaign, commented:

“Since the initial revelations about the missing payments, it is welcome that energy firms have made more effort to track down customers and deliver payments to them, but this work must continue until they have exhausted every avenue to get money into the hands of people who need it.

“However, what is very concerning about these figures, is that the Energy Bills Support Scheme is not getting through to the very areas of the country which need it most.

“In towns and cities, which will also be the battlegrounds in the next general election, households have been left in the cold this winter as payments are not getting through and vouchers are left unredeemed.

“But even in rural areas – where many homes have also suffered from delays in payments not shown in these figures by being offgrid – there are still massive gaps in the support getting through.

“If anyone feels they have missed out on Energy Bills Support Scheme payments they should contact their energy firm immediately.”

Frazer Scott, CEO of Energy Action Scotland, said:

“It is simply disgraceful that so many households have been failed by Government support. The EBSS vouchers expire in June and it is now unlikely that most of these households will now receive some or all of the £400 to which they are entitled.

“People will have simply gone without heat and power across the coldest months putting their health and wellbeing at risk. It is made all the more difficult due to the credit holding limitations of older prepayment electricity meters. This ranges from £99 to £250 depending on your meter and supplier. The larger the outstanding voucher value, if you have it, the more difficult it may be to apply it.

“Those living in rural areas face even more barriers to accessing the value of their vouchers with many having to pay significant travel costs to access their local post office or other redemption point.

“It isn’t right that those in the lowest incomes are enduring yet another unfairness in a system that for the majority, including the most wealthy of households, people with multiple homes, was provided automatically.”

Any money unclaimed by the public or undelivered by the energy firms is due to be returned to the Government after deadline for claims to the scheme ends in June.

ENDS

Full Data Set Available: EFPC April energy-bills-support-scheme-gb-payments-april-2023

Energy firms holding £280m of cash meant for customers

Britain’s leading energy firms are sitting on a multi-million pound cash stockpile which is earmarked for customers under the Energy Bills Support Scheme which finished in March.

According to figures reported in the Mail on Sunday, over four million monthly payments of £66 or £67 had still to be made to or redeemed by households for the period October 2022 to February 2023. Figures including March payments will be available later this month.

The value of these missed payments stacks up to almost £280 million, with half owed to customers on traditional prepayment meters who have not cashed in 2.1m vouchers issued by the firms.

While there are no suggestions of wrongdoing – as any money not paid out to consumers will be returned to the Treasury – the revelations highlight the problem of energy firms not passing the EBSS payments onto people who will be in desperate need and that spent the winter in cold damp homes.

A spokesperson for the End Fuel Poverty Coalition, which is part of the Warm This Winter campaign, commented:

“In some cases, energy firms have been far too slow to pass on these vital funds to customers who may have spent the winter living in cold damp homes.

“While many millions of households have had their payments issued with no problem, the figures around pre-payment meter voucher redemption are particularly worrying. These customers are often among the most vulnerable and have been paying more for their energy in the first place.

“Energy firms need to up their game significantly to end this breakdown in customer service and help get the Energy Bills Support Scheme to those who need it.

“If a customer believes they are missing a payment or a voucher for their prepayment meter they should contact their energy supplier as soon as possible as payments can still be made and vouchers can be reissued.”

The Government also issued figures under Freedom of Information rules to The Times suggesting that the number of prepayment meter vouchers still to be cashed in now stands at 341,000. However, the official published data suggests that this figure is the number of prepayment meter vouchers that have been paid to energy firms but have yet to be delivered to households, rather than the number not redeemed by customers.

Energy firms told the Mail on Sunday that would also urge customers to claim the payments.

The full data set is available to download: MoS EFPC CALCULATIONS

Government announce cut in financial support next winter

The Government has announced a cut in the support available to households in fuel poverty next winter.

While the Energy Price Guarantee will continue to cap the unit cost of energy, all energy bills will increase from 1 April 2023 – at the same time as the Energy Bills Support Scheme finishes.

The final increase will depend on energy prices, which have fallen in recent months, but currently predictions range from a 12% to 20% increase.

In 2022/23, the most vulnerable households were given support of up to £1,500. According to media reports, for 2023/24 the figure reduces to £1,350. A 10% cut in support.

These changes come on top of additional increases in energy costs which many Economy 7 customers saw on their bills from 1 January 2023. Support in 2023/24 for households not on means-tested benefits and those living in “off gas grid” properties have also yet to be confirmed by the Government.

A spokesperson for the End Fuel Poverty Coalition commented:

This winter we have seen over 9m adults living in Dickensian conditions in cold damp homes.

Yet despite energy bills increasing by 20% from April 2023, the support for the most vulnerable announced by the Government has not increased from last year.

In short, bills are going up, support is going down and households will be worse off than they were this winter.

While we support the principle of prioritising support for those who need it the most, the Government must go further to help the millions of homes in fuel poverty throughout 2023.

This does mean more financial support, but also non-financial measures such as banning the forced transfer of households onto more expensive pre-payment meters.

Based on media reports, the End Fuel Poverty Coalition estimate that the support on offer in 2023/24 will be as below:

Financial Year 2022/23	Financial Year 2023/24
£2,500 average household bill through Energy Price Guarantee*	£3,000 average household bill through Energy Price Guarantee*
£400 Energy Bill Support Scheme to all households.	No plans to extend scheme.
£650 cost-of-living payment for means-tested benefit claimants, split into two payments (in summer and autumn 2022).	£900 payment to 8m households on means tested benefits (in four instalments through to Spring 2024)
£150 payments for people with disabilities.	£150 payment for more than six million people with disabilities.
Up to £300 payment for pensioners.	£300 for over eight million pensioners on top of their Winter Fuel Payments.
Source: https://www.gov.uk/guidance/cost-of-living-payment	Source: Press Association as reported by ITV and others.

* Please note the Energy Price Guarantee caps the unit cost paid, not the total bill. This may change due to changing energy prices. Many more vulnerable households pay significantly more than the average stated. The average household bill in winter 2021/22 was £1,277, meaning the average household will be paying £1,523 to £1,723 more by winter 2023/24.

Fuel poverty levels in Sunak, Mordaunt, Johnson & Hunt seats revealed

New estimates by the End Fuel Poverty Coalition reveal that the axing of the Energy Price Guarantee could lead to almost 11m UK households in fuel poverty from April 2023.

And in the constituencies of the Tory leadership candidates, tens of thousands of homes will face fuel poverty.

The figures come as the Warm This Winter campaign has called for £14bn of additional financial support as well as non-financial help for households this winter.

Chief among the non-financial asks is an immediate suspension of all forced transfers of households onto more expensive pre-payment meters (PPMs), whether by court warrant or remotely via smart meters.

These demands come alongside calls for more investment in energy efficiency and a move towards a renewable energy future, and away from oil and gas.

A spokesperson for the End Fuel Poverty Coalition, commented:

The constant u-turns and paralysis in government has millions of victims: the people condemned to fuel poverty.

Had we had a functioning government this year, the energy bills crisis would not have gotten out of hand and we wouldn’t be in a situation now where we have 7m homes in fuel poverty.

People are now dreading the dark nights and cold weather. The NHS is at crisis point and will be unable to cope with the health impacts of people living in cold damp homes.

We need to see an immediate £14bn package of support to help the most vulnerable stay warm this winter.

In addition, the Chancellor must urgently meet with charities and consumer groups to devise support plans for 2023 and beyond to stop even more households falling into fuel poverty.

Tessa Khan, director of Uplift, which is part of the Warm This Winter campaign, said:

Is anyone in Westminster paying attention to what’s happening in the rest of the country? We urgently need a plausible energy plan from the government to ensure people can stay warm this winter and next.

Truss’ ideas, which relied on fracking and new North Sea gas, were as misguided as her economic plan. Neither will make a material difference to people’s lives, they would just make oil and gas companies even richer.

The Chancellor needs to bin Truss’ energy plan, as he has the rest of her agenda, and replace it with measures that will genuinely make a difference to people’s lives, like a subsidised programme of home insulation and more affordable renewable energy.

Cara Jenkinson, Cities Manager at Ashden, which is part of the Warm This Winter campaign, added:

Poor quality homes that leak energy are currently causing the NHS £1.4bn a year as well as misery for people in damp, cold homes.

To solve fuel poverty for good, we need a rapid scale-up of home retrofit focused on the areas that need it most, with an investment in the construction skills needed so that work isn’t stalled by a lack of workers.

Details of Energy Bills Support Scheme announced

Millions of households across Great Britain will receive non-repayable discounts on their energy bills this winter, as the UK Government today has set out further details of the Energy Bills Support Scheme (EBSS).

The £400 discount, administered by energy suppliers, will be paid to consumers over six months with payments starting from October 2022, to ensure households receive financial support throughout the winter months.

The Government has stressed that in all cases, no household should be asked for bank details at any point. Ministers are urging consumers to stay alert of potential scams and report these to the relevant authorities where they are suspected.

A spokesperson for the End Fuel Poverty Coalition commented:

The details of the Energy Bills Support Scheme are broadly welcome.

The officials involved in the development of the scheme have done a good job in listening to the concerns of End Fuel Poverty Coalition members and have taken steps to ensure that every household will be able to benefit.

While there are a few outstanding concerns, we are pleased that BEIS has agreed to work with our members to address these.

The bigger issue, however, is that the level of support available will not be enough to offset the rises in energy bills expected in October and Ministers will need to instruct officials to expand the funding for the scheme.

The Government has issued detailed information for people on how the scheme will work, based on the current proposed £400 discount:

The £400 discount will be administered by suppliers and paid to consumers over six months with payments starting from October 2022, to ensure households receive financial support over the winter months.
Households will see a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 2023.
The discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly or have an associated payment card.
Households will never be asked for their bank details, and those with a domestic electricity connection will not need to apply.
There is no need to contact your supplier as all domestic electricity customers will be automatically eligible. Electricity bill payers should enquire with their supplier if they have not received their first instalment by the end of October.

Breakdown of the delivery process for each payment method:

Direct Debit customers will receive the discount automatically as a reduction to the monthly Direct Debit amount collected, or as a refund to the customer’s bank account following Direct Debit collection during each month of delivery.
Standard credit customers and payment card customers will see the discount automatically applied as a credit to standard credit customers’ accounts in the first week of each month of delivery, with the credit appearing as it would if the customer had made a payment.
Smart prepayment meter customers will see the discount credited directly to their smart prepayment meters in the first week of each month of delivery.
Traditional prepayment meter customers will be provided with redeemable vouchers or Special Action Messages (SAMs) in the first week of each month, issued via SMS text, email or post. Customers will need to take action to redeem these at their usual top-up point.
Landlords who have a domestic electricity contract with a licensed electricity supplier and then resell the electricity to their tenants based on energy usage must comply with the maximum resale price rules. The maximum resale price for electricity is currently set as the same price as that paid by the person reselling it. Under these circumstances, the Government expects landlords to pass on the discount received to each tenant.
Landlords with a domestic electricity connection who charge ‘all inclusive’ rent, often the case for many student houses, where a fixed cost for energy costs are included in their rental charges, must pass on the discounted payments to tenants.
Approximately one per cent of UK households are currently ineligible to receive Energy Bills discount as they do not have a domestic electricity meter and a direct relationship with an electricity supplier. The government has confirmed that further funding will be available to provide equivalent support of £400 for energy bills for the 1% of households who will not be reached through the Energy Bills discount. An announcement with details on how and when these households across Great Britain can access this support will be made this Autumn.

The Energy Bills Support Scheme forms part of the Government’s £37 million Cost of Living Support package, providing Help for Households with rising prices, targeted at those most in need.