Energy bills support schemes: A key step in protecting consumers

The UK government introduced eight energy bills support schemes between 2022 and 2023, spending an estimated £44bn to protect households and businesses from escalating energy prices caused by the pandemic and the war in Ukraine. This support helped reduce fuel poverty, with around 289,000 households saved from the worst impacts of rising costs.

However, the final cost of the schemes was significantly lower than the original estimate of £139bn, partly due to lower-than-expected energy prices and a milder winter in 2022.

While these schemes succeeded in preventing widespread fuel poverty, 238,000 households still fell into fuel poverty during the same period. Further, some individuals and businesses, especially those with less direct access to suppliers, experienced lower take-up rates.

There were challenges in understanding the commercial sector’s energy needs, leading to one-size-fits-all support for businesses, which did not account for differing energy consumption patterns. However, Department for Energy Security and Net Zero (DESNZ) is improving its approach to this sector and is considering more targeted support for any future interventions.

Looking ahead, DESNZ is considering data-matching initiatives to better target future support, alongside long-term strategies for reducing energy bills through renewable energy investments, efficiency improvements, and emissions reductions. However, these measures will take years to fully materialise.

Gareth Davies, Head of the National Audit Office (NAO), said: “The government acted quickly to provide critical support, helping protect many from soaring energy bills. Moving forward, it’s essential to build on the lessons learned to improve value for money and target future interventions more effectively.”