Consumer Scotland published a briefing on 16 November 2023 setting out the options it says the Chancellor may be considering for household energy bill support this winter, ahead of the Autumn Statement on 22 November1. The independent body argues there is a strong case for additional targeted support, and that the mechanisms still available may be imperfect but that does not negate the case for action1.
The briefing states that Ofgem's price cap has fallen to £1,923 for a typical household, from £3,500 this time last year, but that gas and electricity prices in October 2023 were 60% and 40% higher respectively than in October 20211. It cites a survey of 1,500 Scottish households carried out in October, which found 30% were finding it difficult to keep up with energy bills, 43% found it more difficult than a year earlier, and 23% had borrowed money or missed rent payments to afford energy over the six months from April to October1. It adds that 41% said they could not heat their home to a comfortable level, one third reported a negative effect on mental health and one quarter on physical health1.
On the Warm Home Discount, the briefing says the scheme may have been the preferred option had the UK government acted earlier in the autumn, but that the window may already have closed because payments are being processed1. It highlights that around 190,000 Broader Group customers in Scotland must apply to their supplier rather than receiving the £150 rebate automatically, as happens in England and Wales, and that suppliers vary eligibility criteria and application windows1. It says around 90,000 Core Group recipients in Scotland receive the discount automatically1.
The briefing argues support could instead be channelled through the prepayment meter Energy Price Guarantee, or PPM-EPG1. It notes that since July, households without a prepayment meter are no longer covered by the Energy Price Guarantee, while PPM customers remain covered, delivered as a discount to standing charges worth around £40 a year for a typical PPM customer1. It says the EPG is applied automatically, with no requirement to apply1. It cites Ofgem data that almost 500,000 households in Scotland pay for electricity by PPM and over 300,000 pay for gas by PPM, and that half of PPM customers in Scotland report struggling with bills, against 30% of the population generally1.
"This briefing reviews the options that the Chancellor may be considering as he puts the final touches to next week's autumn statement"
Why it matters for households
The briefing sets out that the two mechanisms it examines reach different groups. The Warm Home Discount in Scotland depends on households applying to their supplier, so eligibility can turn on whether someone knows about the scheme and applies within a supplier's window1. Support through the PPM-EPG would arrive automatically on the bill, but would be limited to prepayment meter customers1. Consumer Scotland notes that PPM customers are more likely to have a low income, with around 25% to 30% of households in the lower half of the income distribution paying by PPM, against fewer than ten percent of households in the top two quintiles, but adds that not all low income customers pay by PPM1. For a household, the practical difference is between a discount that is applied without action and one that requires an application, and between support that reaches all PPM users and support that reaches a narrower group. The briefing also states that energy debt repayment is now an additional strain for an increasing number of households1.
What happens next
The Autumn Statement was due on 22 November 2023, and the briefing says the UK government may use it to set out plans for further support this winter1. It states there is insufficient time to implement new policies with new eligibility criteria this winter, so any support would have to be channelled through existing mechanisms1. It adds that the PPM-EPG intervention could run until an enduring solution is brought forward by Ofgem1. Consumer Scotland says it will consider options for longer term reform of energy affordability policy in future commentary1. No decision by the Chancellor is reported in these documents.