The Energy Bills Support Scheme, which gave £400 per household off their bills last winter, has ended, the Bevan Foundation said on 20 November 20231. The charity set out the change alongside its assessment of the winter ahead for households in Wales1.
The foundation said energy prices are more than 50 per cent higher than in 2021/22, with gas at 7p per kWh and electricity at 27p per kWh in October to December 20231. It put the bill of a typical household using the same amount of energy as in previous years at £1,923 a year, or around £37 a week, and said Ofgem had dropped its estimate of the typical household bill to £1,834 a year on the grounds that households have cut back on consumption1.
On the outlook, the foundation said Ofgem will announce the price cap for January to March 2024 on 23 November, with many forecasting unit costs will rise1. It cited Cornwall Insight predicting prices will rise by five per cent, to £1,931 using new consumption figures, from 1 January 2024, and staying high for the rest of the year1. It also said analysts are forecasting a steep increase in electricity standing charges from April next year as a result of a review by Ofgem, which could mean households paying 61p a day, or £4.27 a week, simply to have an electricity supply before using any units1.
The foundation said some help remains for pensioners through the Winter Fuel Allowance, as in previous years, but that for people of working age there is nothing1. It reported that four out of ten people in Wales (39 per cent) were forced to cut back on heating last winter, falling to 27 per cent over the summer1.
"And third, although prices remain high, the Energy Bills Support Scheme, which gave £400 per household off their bills last winter, has gone. There is some help for pensioners, through the Winter Fuel Allowance, as in previous years but for people of working age there is nothing."
The foundation said people in Wales face energy prices among the highest in the UK, particularly in north Wales, homes among the least energy efficient, mainly because of their age, and household incomes among the lowest1. It said Wales produces nearly twice as much electricity (27.1 TWh) as it consumes (14 TWh)1.
Why it matters for households
The £400 per household payment that reduced bills last winter is no longer being made1. The foundation said pensioner households can still receive the Winter Fuel Allowance as in previous years, while working age households have no equivalent support1. Energy prices remain more than 50 per cent above 2021/22 levels, and the foundation said forecasts point to a five per cent rise to £1,931 from 1 January 2024, with high prices expected to persist through the year1. It also flagged a possible steep rise in electricity standing charges from April 2024, which would raise the fixed daily cost of having a supply before any energy is used1. The foundation said the summer fall in the number of households cutting back on heating may have created a false sense of security1.
What happens next
The Chancellor delivers the Autumn Statement on Wednesday 22 November, followed by Ofgem's decision on the energy price cap on Thursday 23 November1. The foundation said prices for the next quarter remain speculation until Ofgem announces its decision, and that it remains to be seen whether the Chancellor provides any respite in the Autumn Statement1. Help with bills is covered in the site's guide to the Warm Home Discount and other help with energy bills, and wider support in the benefits hub.
Sources1 cited
- Winter warning for Welsh heating bills - Bevan Foundation bevanfoundation.org
Turn2usFree benefits calculator and grants search from a charity
Citizens AdviceFree advice on money, consumer and legal problems in England and Wales
GOV.UKOfficial information on tax, benefits and government services
MoneyHelperFree, impartial money and pensions guidance, set up by government