Chancellor statement sets end date for energy support schemes

The Energy Price Guarantee, the Energy Bills Support Scheme and the Energy Bill Relief Scheme for business customers are all due to end in their current form on 31 March 2023, Consumer Scotland said following the Chancellor's statement of 17 October 2022¹. The body, which describes itself as independent, set out the position in a blog post by its chief executive Sam Ghibaldan published on 18 October 2022¹.

Consumer Scotland said the Energy Price Guarantee was "significant and welcome", along with the Energy Bills Support Scheme and the Energy Bill Relief Scheme¹. It added that a number of issues remain, and that many consumers will face ongoing uncertainty over their energy bills pending the outcome of the government's review¹.

The blog said consumers have faced bills from 1 October 2022 nearly double the rate they were in March, and 25% more than the previous month¹. It cited the price cap at £1,277 per annum as of 1 October 2021 and £1,971 per annum as of 1 April 2022¹.

Consumer Scotland said pre-payment meter customers are much more likely to be in fuel poverty than those on direct debit, at 36% compared with 22% respectively, and that if they cannot top up their meter they may be left without essential heat and power¹. It said 183,000 households in Scotland rely on solid and liquid fuels for heating, that the price of liquid fuels rose by 129% in the 12 months to June 2022 before falling recently, and that these consumers appear to be offered only £100 per household, against higher support for consumers connected to the gas grid¹.

On business support, the blog said the Energy Bill Relief Scheme is initially for six months, that over a quarter of Scottish businesses recently cited energy prices as their biggest concern in an ONS business insight survey, and that over 52% reported being affected by the increase in energy prices in some way¹. It said the UK Government has promised to review the relief scheme after three months to inform any extension after March¹.

Why it matters for households

The three schemes named by Consumer Scotland are the main bill support measures for households and businesses. On the body's account, they lapse in their current form on 31 March 2023, so the level of support in place from April 2023 has not been settled¹. The government's review is intended to "design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need", according to the wording quoted by Consumer Scotland¹.

The blog sets out which groups it says are less fully covered by the current measures: pre-payment meter customers, who it says face higher fuel poverty rates than direct debit customers; households with higher than typical energy demand; and the 183,000 Scottish households using solid and liquid fuels, which it says are offered £100 per household against higher support for gas grid consumers¹. It also notes that the Energy Bill Relief Scheme is initially a six month measure for businesses¹.

What happens next

The UK Government has promised to review the Energy Bill Relief Scheme after three months to inform any extension after March¹. Consumer Scotland said it will conduct research and work with advice providers over the coming months to develop its analysis of consumers' needs in Scotland, and will contribute to the UK government's review of its energy support schemes¹. The outcome of the review, and any decision on support beyond 31 March 2023, has not been reported.