Department for Business, Energy and Industrial Strategy written question – answered at on 19 January 2021.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to reduce fuel poverty in winter 2020-21.
Improving the energy efficiency of homes is the best long-term solution to tackle fuel poverty. The Energy Company Obligation is a GB wide energy efficiency scheme worth £640m per year until March 2022 and is focused on low-income and vulnerable households. The Green Homes Grant, launched in September 2020, is a £2 billion programme which will help improve the energy efficiency of homes in England. Of this, around half is specifically for low income, vulnerable and fuel poor households.
We recognise that some households may need immediate support this winter and so we provide assistance with energy bills for low income and vulnerable consumers through the Warm Home Discount, Winter Fuel Payments and Cold Weather Payments.
We have also successfully negotiated an agreement with energy suppliers to support customers impacted by COVID-19. Based on the circumstances, this could include reassessing, reducing, or pausing debt repayments for households in financial distress and support for prepayment meter customers to stay on supply.
The energy price cap currently protects around 11 million households in Great Britain on standard variable and default tariffs. From January 2021 a further 4 million households with prepayment meters will also come under the protection of the cap after the prepayment meter price cap expires. The cap ensures that loyal energy customers are protected from poor value tariffs, saving consumers a total of around £1 billion on their bills annually.
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