February 2022
Dear Constituent,
Thank you for contacting me about rising energy prices.
The Government takes this issue very seriously and has introduced a range of measures to support those struggling to pay their bills. These include reducing the Universal Credit taper rate, increasing the National Living Wage, freezing fuel duty and launching a £500 million Household Support Fund that will help the lowest income households.
Moreover, in response to Ofgem’s recent confirmation that the energy price cap will rise by £700 from April, the Government has announced a further support package to help with household fuel bills immediately and protect people against this increase. The measures, worth £350 per household in a total package of support worth £8.6 billion, include:
• A £200 ‘smoothing’ rebate on energy bills for all households, to be paid back over the next five years at £40 per year – starting from April 2023;
• A non-repayable £150 cash rebate for homes in Council Tax bands A-D – equivalent to 80 per cent of all households, helping both lower and middle-income families;
• £144 million of discretionary funding for local authorities to support households not eligible for the council tax rebate.
More broadly, I am pleased the Government is working hard to reduce bills and tackle fuel poverty, such as through the introduction of schemes to improve energy efficiency measures in homes. The Government’s Energy Company Obligation and expanded Warm Home Discount schemes will also provide at least £4.7 billion of extra support to low-income and vulnerable households between 2022 and 2026.
Please be assured I will monitor this issue very carefully indeed.
With best wishes.
Kind regards,
Jonathan Lord MP
Member of Parliament for Woking