The Government published an explainer of the Energy Bills Discount on 1 April 2022, renaming it the Energy Bills Support Scheme (EBSS)1. The scheme had first been announced by the Chancellor of the Exchequer on 3 February 2022 as part of an Energy Bills Rebate support package, alongside a council tax rebate and an expansion of the Warm Homes Discount Scheme1.
At that point the Energy Bills Discount was described as "an up-front discount on their bills worth £200", to be given to all domestic electricity customers in Great Britain in autumn 2022, with the Government proposing at the time that customers would pay the money back through bills in later years1. On 26 May 2022 the Chancellor announced a further Cost of Living support package, in which he said the EBSS would be doubled to £400 and would now be provided as a non-repayable grant1.
The scheme as amended provides a one-off £400 payment to households to help with bills over winter 2022-231. All households with a domestic electricity connection, and/or a domestic electricity meter, receive the £400 non-repayable grant as a credit from their energy supplier in autumn 2022, automatically and without needing to apply1. The grant is paid over six months from October 2022, with suppliers required to provide each eligible domestic electricity customer they serve on the Qualifying Date, the first day of each EBSS delivery month, with either £66 or £67 a month during each month that they are eligible1.
Direct debit and credit customers receive it as credit to their account, smart prepayment meter customers see it credited directly to their meters each month, and traditional prepayment meter customers are provided with discount vouchers each month, issued via SMS text, email or post1. Those customers need to take action to redeem the vouchers at their usual top-up point, such as their nearest local PayPoint or Post Office branch1.
The EBSS applies to consumers in England, Scotland and Wales1. The Government said it would fund the Northern Ireland Executive "to provide comparable support with around £150 million through the Barnett formula in financial year 2022 to 2023"1. The consultation response published on 29 July 2022 reconfirmed that position and said the Government was "working urgently to ensure that the people of Northern Ireland receive the equivalent support as soon as possible"1.
The £400 grant is additional to the £150 council tax rebate announced on 3 February 2022, a non-repayable rebate for households liable for council tax in bands A to D in England, expected to benefit 80% of homes in England and paid directly by local authorities from April 20221. Local authorities were given £144 million of discretionary funding to support people needing help with energy bills who were not eligible for the council tax rebate, and the devolved administration received around £715 million to provide comparable support where UK Government support did not cover Scotland, Wales or Northern Ireland1.
"On 1 April 2022, the Government published an explainer of the Energy Bills Discount, renaming it the Energy Bills Support Scheme"
| Item | Detail |
|---|---|
| EBSS grant | £400 non-repayable, all households with a domestic electricity connection |
| Instalments | Six monthly payments from October 2022, £66 or £67 a month |
| Council tax rebate | £150 non-repayable, bands A to D in England, from April 2022 |
| Discretionary funding | £144 million to local authorities |
| Northern Ireland | Around £150 million through the Barnett formula, 2022 to 2023 |
Why it matters for households
The renaming marked the point at which the discount stopped being framed as money to be recovered later and became a grant. The £400 was paid automatically through electricity accounts, so a household's energy bills and energy independence rested on a credit applied by the supplier rather than on any action by the occupant. Because it was delivered in six instalments, households that moved home during the six months could still receive the portion of the total £400 for the months in which they were eligible1. The scheme has since closed, and the closed energy bill support payments page covers EBSS, the £400 and Alternative Fuel Payments.
The context was steep. The price cap increased by 54% in April 2022, and forecasts at the time pointed to a further large rise in October 2022, with Cornwall Insight then estimating around £3,580, or 80% above the current cap1. The £400 was therefore a fixed contribution against a rising unit cost, not a cap on what a household paid. Households not on the mains gas grid using an alternative fuel such as heating oil were addressed separately through Alternative Fuel Payments, a one-off £200 for households and at least £150 for non-domestic customers1.
What happens next
The Government held a consultation on technical proposals for the EBSS from 11 April to 23 May 2022 and published its consultation response on 29 July 2022, setting out final policy decisions for delivery1. Alongside the response, the Department for Business, Energy and Industrial Strategy published a draft Secretary of State Direction to suppliers, with a final version to be issued ahead of the scheme's launch1. Ofgem was expected to announce the next price cap level on 26 August 20221.
Sources1 cited
- Energy Bills Support Scheme: Government policy and FAQs - House of Commons Library, commonslibrary.parliament.uk