£400 energy discount (EBSS) not repeated for winter 2023/24

The £400 energy discount for electricity customers, known as the Energy Bills Support Scheme (EBSS), is not set to be repeated this winter, according to Which?¹. The discount was paid in monthly instalments between November 2022 and March 2023¹. No replacement scheme for winter 2023/24 has been reported.

The energy price cap, which limits the price of a single unit of energy for customers on variable tariffs, was set at a level meaning a typical household using a medium amount of energy and paying by direct debit would pay £1,874 per year, or around £156 per month, as of 1 October 2023¹. Ofgem sets the level of the price cap and changes it every three months¹. The headline figure of the price cap is £1,834, based on a typical household using a medium amount of gas and electricity and paying by direct debit¹. Exactly what a household pays depends on how much gas and electricity it uses, where it lives, how it pays and the type of meter it has¹.

Other cost of living payments continue. The lowest income households in the UK will each receive a £900 cost of living payment spread over 2023 and early 2024, paid directly into accounts by the Department for Work and Pensions or HMRC in three instalments¹. The first part, of £301, was paid during April and May 2023; the second payment of £300 is during October and November 2023; and the third payment of £299 will be in spring 2024¹. To be eligible, a person must be receiving certain means-tested benefits, including Universal Credit, tax credits and pension credit¹. For the autumn payment, the qualifying period was 18 August to 17 September 2023¹.

People who receive non-means-tested disability benefits should have received a £150 disability payment during summer 2023¹. Disabled people who also get means-tested benefits can receive both the £900 payment and the £150, bringing the total additional payment in 2023/24 to £1,050¹. Pensioners who receive the Winter Fuel Payment should get £150 or £300 during winter 2023/24, and eligibility requires being born on or before 25 September 1957¹. Payments are between £100 and £300 depending on age and circumstances¹. Those on lower incomes who claim pension credit will also receive the £900 as part of the means-tested benefits package¹.

Why it matters for households

Households that received the £400 EBSS discount in monthly instalments between November 2022 and March 2023 will not receive those payments this winter¹. The discount reduced electricity bills over five months; without it, the same household faces the price cap rate without that reduction. The price cap as of 1 October 2023 means a typical household paying by direct debit would pay £1,874 per year, or around £156 per month¹. The £900 means-tested payment is being made in three instalments across 2023 and early 2024, with the second payment of £300 during October and November 2023 and the third of £299 in spring 2024¹. The £150 disability payment was paid in summer 2023¹. Winter Fuel Payments of £150 or £300 are being paid during winter 2023/24 to those born on or before 25 September 1957¹. The Household Support Fund helps people in England who are vulnerable or cannot afford the cost of essentials, including energy bills, with local councils running schemes under different eligibility criteria¹. The Warm Home Discount gives £150 off a bill for those who get the guarantee element of Pension Credit, and others who meet their supplier's criteria¹. The Cold Weather Payment gives extra support when temperatures are below zero for seven days in a row, for those on qualifying benefits¹. The Winter Fuel Payment is available to those born on or before 25 September 1957¹.

What happens next

The third means-tested cost of living payment of £299 will be paid in spring 2024¹. The energy price cap is expected to increase slightly at the end of the year, according to Which?¹. Ofgem changes the price cap every three months¹. No repeat of the £400 EBSS discount for winter 2023/24 has been reported¹.