Commons Sense

House of Commons · Ministers' Questions

Energy Bill Relief Scheme

Tuesday 18 April 2023 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 3 Not answered 0

Key points

  • The Government's energy bill relief scheme has spent over 5 billion to date, providing support of around 35 million per day.
  • The energy bills discount scheme is in place to assist businesses, charities, and public sector organisations until April 2024.
  • The energy bill relief scheme is expected to cost 7.3 billion in total and provides a discount on the wholesale element of gas and electricity.

Topics (select to filter)

Questions & Answers

Q1 Gagan Mohindra Con South West Hertfordshire
Energy
Context

The MP is concerned about the effectiveness of recent measures to help businesses and organizations with their rising energy costs.

Question

What recent assessment has been made of the effectiveness of the energy bill relief scheme? The Government's programme has spent over £5 billion so far, which is around £35 million a day. However, the questioner wants to know if this support is sufficient and effective in helping businesses pay their bills.

Answer from Amanda Solloway

The Government's assessment of the energy bill relief scheme shows we have spent over £5 billion to date—that is around £35 million a day to help businesses, charities and public sector organisations to pay around half of their wholesale energy costs this winter. This support has been unprecedented in nature, demonstrating that this Government are always on the side of business.

Answered
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Q2 Gagan Mohindra Con South West Hertfordshire
Energy Business & Trade
Context

The MP highlights the struggles of small businesses, like Linda from the Kitchen Croxley, who face rising costs and are unsure how to continue operating.

Question

What is being done to support hard-working people such as Linda, a business owner facing rising energy bills? The questioner asks specifically about assistance for small businesses to keep their doors open to customers.

Answer from Amanda Solloway

I applaud the work my hon. Friend does to support businesses in his constituency such as the Kitchen Croxley. I understand times are tough for many small businesses, which is why the Government have implemented the energy bills discount scheme, to take effect until April 2024. Businesses fixed into more costly long-term contracts are more likely to receive the energy bills discount scheme payment support due to how the baseline discount is calculated.

Answered
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Q3 Drew Hendry SNP
Energy
Context

The MP raises concerns about energy companies increasing direct debits while holding onto consumer credits. He asks for updates on discussions with Ofgem and invites the Minister to support a campaign in Committee Room 11.

Question

Can the Minister update us on conversations with Ofgem to regulate energy companies from increasing direct debits while holding onto reasonable amounts of credit belonging to consumers? The MP also invites the Minister to join the It's Your Money campaign at 2.30 PM in Committee Room 11.

Answer from Amanda Solloway

That was an excellent plug by the hon. Member. He will know that I have been engaging with stakeholders—a whole range of stakeholders—including, of course, Ofgem.

Partly answered

Not addressed: conversations with Ofgem

How: That Was An Excellent Plug

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Q4 Jane Hunt
Energy
Context

A company in the MP's constituency is concerned about not being eligible for additional support under the energy bill relief scheme despite high energy usage. The questioner asks for a review of eligibility criteria.

Question

The constructional steelwork sector, a high energy user, is not included in industries eligible for higher support under the energy bill relief scheme. Without this £75,000 additional support, costs will be passed on to customers, including the Government. The MP requests a review of eligibility criteria and inclusion of the constructional steelwork sector.

Answer from Amanda Solloway

The energy bill relief scheme is expected to cost £7.3 billion over its duration. It provided a discount on the wholesale element of gas and electricity to ensure all businesses and non-domestic customers were protected from excessively high energy costs over the winter period. Of course, the EBDS will continue to provide a discount eligible to non-domestic customers, with a higher level of support provided under the energy-intensive industrial element of the scheme, which will be available to most energy and trade-intensive businesses, primarily in the manufacturing sector.

Partly answered

Not addressed: specific eligibility criteria for constructional steelwork sector

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Q5 Tim Farron Lib Dem Westmorland and Lonsdale
NHS Energy
Context

The MP highlights that despite a 350% increase in energy costs, hospices are not included in the list of eligible industries for higher support under the energy bill relief scheme.

Question

Our hospices face a 350% increase in energy costs but are considered businesses when it comes to energy bill relief. Despite previous discussions on this matter, there is no special programme or specialist scheme to assist them. The MP asks what progress has been made in looking at a package to help support our hospices and others who care for those in desperate need.

Answer from Amanda Solloway

I thank the hon. Member for bringing up such an important subject. He will be pleased to know that this week I met Hospice UK to discuss that very subject and, indeed, I am working to see how we can be the most supportive.

Partly answered

Not addressed: specific package for hospices

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