The government published its response to the technical consultation on the Energy Bills Support Scheme (EBSS) on 29 July 2022, setting out the final policy decisions for delivery of the scheme1. The response was accompanied by a draft Direction made by the Secretary of State for Business, Energy and Industrial Strategy2. The consultation ran from 11 April to 23 May 2022 and received 233 written responses from large and small suppliers, Distribution Network Operators, consumer groups and charities; officials also held engagement sessions with more than 93 interested parties1.
The scheme will provide energy bill discounts to 29 million households across Great Britain1. The £400 discount, administered by energy suppliers, will be paid over six months with payments starting from October 20221. Households will see a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 20231. Suppliers will be 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 eligible3.
How a household receives the money depends on its payment method2:
| Payment method | How the discount is delivered |
|---|---|
| Direct Debit | Reduction to the monthly Direct Debit amount collected, or a refund to the bank account following collection; Direct Debit dates remain unchanged |
| Standard credit (pay on receipt) | Credit to the account in the first week of each month of delivery, appearing as if a payment had been made |
| Payment card | Credit to the account in the first week of each month of delivery, as if a payment had been made |
| Smart prepayment meter | Remotely applied as credit to the meter in the first week of each month of delivery |
| Traditional prepayment meter | Vouchers or Special Action Messages redeemable at the usual top-up point, issued from the first week of each month via SMS text, email or post |
The government said the instalment approach means that where a person's housing circumstances change during the six-month period, such as those leaving or moving home, they will still benefit from the relevant portion of the total £4001. This also applies to students and other tenants renting properties with domestic electricity contracts from landlords where fixed energy costs are included in rental charges; landlords who resell energy to tenants should pass the discounted payments on appropriately, in line with Ofgem rules to protect tenants1. In all cases, no household should be asked for bank details at any point1.
The scheme applies to consumers in England, Scotland and Wales1. The UK government said it is urgently working to ensure the people of Northern Ireland receive the equivalent of this support as soon as possible1. Further funding will be available to provide equivalent support of £400 for energy bills for the 1% of households who will not be reached through the EBSS, including those who do not have a domestic electricity meter or a direct relationship with an energy supplier, such as park home residents; an announcement on how and when these households can access support will be made in autumn1.
"Today we have set out how the government will deliver discounts to help 29 million households with their energy bills this winter."
Why it matters for households
The EBSS is a universal discount delivered through electricity suppliers rather than a grant application, so most households receive it automatically without applying3. For a household's energy independence, the practical effect is a fixed reduction in the amount billed over the winter, spread across six months rather than paid as a lump sum. Because the discount is tied to the electricity meter point and the qualifying date each month, a household that moves home mid-period still receives the portion due for the months it was eligible1. Households on traditional prepayment meters must redeem vouchers or Special Action Messages at a top-up point, so the discount is not applied without action on their part1. The government also launched an online service to help homeowners make informed choices on the energy efficiency of their homes, alongside the consultation response1.
What happens next
The government will work with Ofgem and suppliers on guidance ahead of implementation of the scheme from October 2022, including a full set of EBSS reporting requirements for suppliers to be published in due course1. A final version of the Secretary of State Direction to suppliers will be issued ahead of scheme launch2. An announcement on how households not reached through the EBSS can access equivalent support will be made in autumn1. Ofgem is expected to announce the next price cap level on 26 August 20223.