According to newly released official data, a record number of homes accepted government assistance for energy costs.
76% of all Energy Bills Support Scheme vouchers have now been redeemed, with 1.7 million used in the month of January alone. This follows a government communications campaign, with the Energy Security Secretary calling on suppliers to do everything they can to deliver support. Over £7.2 billion has now been provided to 98% of eligible households in England, Scotland, and Wales, with redemption rates ranging from 0% to 100%.
Local leaders are urged by ministers to help ensure that information and support reach every household in the nation.
In January, a record number of energy bill support vouchers were redeemed by families with traditional prepayment meters (PPM) than at any other time in the program’s history.
Three-quarters of all coupons have now been used, as a result of a targeted government campaign and appeals from the Energy Security Secretary for energy suppliers to do more to help customers access all available resources.
In January, households with prepayment meters in the United Kingdom utilized 1,7 million vouchers, 130,000 more than in December, according to data released today (20 February 2023) Via the Electricity Bills Support Programme (EBSS), some of the most needy households have received the highest rate of government assistance to date, with a total of £530 million distributed under EBSS.
The vouchers distributed through the program provide a total of £400 in monthly payments to assist with winter energy bills.
E Gas & Electricity and Octopus, whose conventional Prepayment Meter (PPM) clients redeemed 87% and 85% of their coupons, respectively, are the best-performing electricity suppliers with the highest redemption rates.
The five suppliers with the greatest number of PPM customers – Centrica (British Gas), E.On, Ovo, EDF, and Scottish Power – all experienced an increase in voucher redemptions, but they remained among those with the lowest redemption rates overall.
It is in response to the Energy Security Secretary’s demand that suppliers do more to assist vulnerable consumers, as well as worries over the low uptake of EBSS coupons. In order to reach eligible clients, the government has also increased campaign advertising on community radio, social media, and in national magazines.
As of the end of January, 76% of all vouchers distributed to date have been redeemed, indicating that more assistance has reached these homes than at any other time since the program’s inception.
Yet, despite this progress, the government is urging providers to continue their efforts to reach customers with unredeemed vouchers, of which there are approximately 1.9 million.
Grant Shapps, secretary of energy security, said:
This winter, we are covering around half of the energy bills for the majority of households, an unprecedented level of assistance.
In certain parts of the country, January temperatures were as low as -10 degrees, and I am glad to report that a record number of homes have applied for government assistance.
But, many homes have not yet redeemed the vouchers to which they are entitled, and I want energy providers to redouble their efforts to provide assistance to those who require it.
The EBSS has now delivered almost £7.2 billion to 98% of British homes, according to the most recent data. Rates of voucher redemption grew across all regions, but London (58%), Scotland (68%) and the Southeast of England (69%) had the fewest households redeeming vouchers, indicating that many families are still missing out.
In all other regions, redemption rates are already above 70%, but ministers continue to urge communities, local leaders, and suppliers to ensure that homes with traditional prepayment meters are informed of the assistance and how to obtain it.
Around a third of vouchers remain unclaimed in London’s Local Authorities, with households from Brent to Lewisham missing out on support to which they are entitled. Outside of London, Edinburgh (59%), Brighton (61%) and Glasgow (62%) have some of the lowest redemption rates.
Yorkshire & Humber and the North East of England have the highest overall PPM voucher redemption rates, at 75% and 74% respectively; however, even in these regions, a greater number of voucher redemptions would assist more households with traditional prepayment meters.
While most customers receive the discount immediately each month they qualify, those with a traditional PPM receive vouchers that must be redeemed at a Post Office or PayPoint. Suppliers are responsible for informing PPM customers on how to redeem coupons for government assistance and must make multiple attempts to contact those who have not yet redeemed their certificates.
James Jamieson, Head of the Local Government Association, which represents over 350 councils in England and Wales, stated:
All around the nation, councils are intensifying their efforts to ensure that this assistance reaches people who require it. In the midst of a cost-of-living crisis, it is crucial that households claim the assistance to which they are entitled.
Last year, Energy Minister Graham Stuart met with providers to discuss additional steps to enhance voucher redemptions by PPM customers. Many suppliers provided ongoing training for their call centre personnel, while others sent people door-to-door to spread the message.
The Energy Security Secretary has also pushed suppliers to replace traditional meters with smart meters, which can automatically receive government support payments and detect self-rationing and disconnection by customers.
It is in addition to a broader crackdown on the mistreatment of vulnerable consumers by the Energy Security Secretary, after concerns were made about the significant increase in corporations seeking warrants to forcefully install prepayment meters.
Since Mr. Shapps’ intervention, all energy suppliers have pledged to end the forced installation of prepayment meters in the homes of vulnerable customers, Ofgem has pledged to speak with consumers rather than just suppliers about their experiences, and Lord Justice Edis has ordered magistrates’ courts to stop approving warrants to force-fit prepayment meters, putting an end to the practice.
Remarks to editors
The current EBSS delivery data for England, Scotland, and Wales are available here: Energy Bills Support Programme transparency data: payments made by power companies to customers.
Today’s data update the number of coupons issued by suppliers and redeemed by customers through the first day of February 2023. In addition, redemption rates are broken out for the months of October, November, and December by supplier, local authorities, and constituency.
Government continues to collaborate with suppliers, charities, consumer groups, and local leaders to reach additional customers with unused vouchers.
»Energy bill support reaches vulnerable households at its peak in January«
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