The Energy Bill Support Scheme (EBSS) ended in March 2023, closing the £400 discount that every household with a domestic energy connection in Great Britain received for winter 2022 to 20231. Payments ran from October 2022 to March 2023 and were made automatically by energy suppliers2. The scheme has not been extended or replaced2.
The discount was paid in monthly instalments of £66 or £67 across the October to March period3. Households using alternatives to mains gas for heating, such as heating oil, liquefied petroleum gas or coal, received a separate one-off £200 credit on energy bills from February 2023 under the Alternative Fuel Payment1. Prepayment meter customers who received their EBSS payment as a voucher had to use it within three months, with 30 June given as the last day to activate one2.
The EBSS sat alongside the Energy Price Guarantee (EPG), which set maximum prices for gas and electricity below the level of the existing price cap1. The EPG was set at £2,500 a year for typical levels of consumption and was initially planned to last two years1. Following changes announced in the spring Budget 2023, it remained at £2,500 until the end of June 2023 and then rose to £3,000 from July 2023 to March 20241. The EPG is set to end in 20241.
Which? estimated that the ending of the £400 payment would leave the average household in the lowest 10 per cent of incomes paying £209 more in 2023/24 than in 2022/23, compared with £135 more for a median-usage household4. It said the loss was greater for lower-income households because their lower energy usage means they gain less from falling prices, while the loss of the £400 is the same4. The consumer body also estimated that a median-usage household's annual bill would rise from £1,983 to £2,1184.
"The Energy Bill Support Scheme - which provided an additional £400 to all households in the UK from October 2022 - March 2023 - has also ended."
| Measure | Amount | Period |
|---|---|---|
| Energy Bill Support Scheme | £400 discount, all GB households with a domestic energy connection | October 2022 to March 20231 |
| Alternative Fuel Payment | £200 one-off credit for households off mains gas | From February 20231 |
| Energy Price Guarantee | £2,500 a year for typical consumption | To end of June 20231 |
| Energy Price Guarantee | £3,000 a year for typical consumption | July 2023 to March 20241 |
Why it matters for households
The EBSS was universal: it reached every household with a domestic energy connection in Great Britain regardless of income, and it was paid automatically rather than claimed1. Its closure removed a fixed £400 from household energy budgets at the same time as the Energy Price Guarantee continued to set the maximum price per unit rather than the size of the bill. Because the guarantee caps unit rates and standing charges rather than total annual bills, a household that uses more energy pays more than the headline figure1.
For a home's energy independence, the practical effect is that the cost of each unit of gas and electricity consumed now falls entirely on the household, with no offsetting credit. Which? found that spending on energy took a larger share of total expenditure in lower income groups, at 7.4 per cent in the lowest income decile and 6.9 per cent in the second, against 3.5 per cent in the highest1. Ofgem data cited in the same briefing showed the number of smart prepayment meter customers in Great Britain who self-disconnected their electricity at least once for more than three hours rose from 165,000 in the final quarter of 2021 to 269,000 in the first quarter of 2023, a 63 per cent increase, while gas self-disconnections rose from 193,000 to 534,000, an increase of 178 per cent1.
The government said in the November 2022 autumn statement that it would take a "new approach to consumer protection from April 2024", working with consumer groups and industry on options including social tariffs1. That consultation had not been published as of October 20231. An open letter to the Prime Minister dated 29 September 2023 calling for a social tariff, supported by over 130 organisations, argued that a social tariff would offer a long-term solution to fuel poverty1. Which? has also called for a social tariff3. No replacement for the EBSS has been announced2.
What happens next
The Energy Price Guarantee is set to end in 20241. The government has not published its consultation on a new approach to consumer protection, which it said would be in place from April 20241. Ofgem said the ending of the EBSS in March 2023 was reflected in its forecast for the period April 2023 to March 2024, and that it expected to consult on related debt matters in spring 20245. Details of the closed scheme and the payments it made are set out in the site's guide to closed Energy Bill Support payments, and the wider landscape of support in home energy grants and schemes.
Sources5 cited
- CDP-2023-0202.pdf, researchbriefings.files.parliament.uk
- Energy Bill Help UK After Scheme Ends | Reduce Energy Costs & Support Options, britishgasenergytrust.org.uk
- Low-income households could be left over £200 out of pocket on energy bills this financial year as support falls away, Which? warns - Which?, which.co.uk
- Household energy costs in 2023/24 - Which?, which.co.uk
- Involuntary PPM, ofgem.gov.uk