Government’s Energy Support Schemes Deemed Successful by Auditor
The UK government’s efforts to shield people and businesses from soaring energy prices have been labeled as a success, according to a report by the National Audit Office (NAO). In response to the significant increase in average annual household bills from £1,277 in the winter of 2021/22 to over £4,000 by the beginning of 2023, the previous government rolled out eight support schemes, including the Energy Price Guarantee in 2022 and 2023.
The NAO report commended the government for acting swiftly to implement these schemes but noted that the speed at which they were launched posed risks to value for money. While the support measures cost £44 billion, significantly lower than the initially projected £139 billion, some individuals received financial aid unnecessarily due to the universal nature of the support.
Despite the successful prevention of approximately 289,000 households in England from falling into fuel poverty and a decrease in energy disconnections or rationing, around 238,000 households still slipped into fuel poverty between 2022 and 2023. The report highlighted the low uptake of support among certain groups, such as people living on boats, and those without a direct relationship with an electricity supplier.
The Department for Energy Security and Net Zero (DESNZ) reported that fraud and error rates within the schemes were relatively low, estimated at 0.7% of total payments amounting to £291.8 million. However, the government’s understanding of energy usage within the commercial sector was deemed inadequate, resulting in uniform support for businesses despite varying energy consumption levels.
Gareth Davies, head of the NAO, acknowledged the government’s substantial financial support during the energy crisis and emphasized the importance of DESNZ preparing for potential future spikes in energy prices. Committee of Public Accounts chairman Geoffrey Clifton-Brown praised DESNZ for its prompt actions and emphasized the need for continued efforts to enhance consumer support measures in anticipation of future crises.
A DESNZ spokesperson emphasized the imperative of investing in clean, domestically controlled energy sources to ensure energy independence and mitigate the impact of price fluctuations. The government’s commitment to delivering clean power by 2030, coupled with initiatives like the £150 Warm Home Discount expected to aid three million households, exemplifies its dedication to supporting vulnerable families.
Looking ahead, DESNZ aims to leverage the lessons learned from the recent energy crisis to proactively address any future challenges effectively. By refining interventions and maximizing value for money, DESNZ intends to enhance its responsiveness to potential energy crises and safeguard consumers from adverse impacts.
In conclusion, the NAO’s assessment of the government’s energy support schemes underscores the importance of proactive and strategic interventions in mitigating the impacts of energy price fluctuations. As the nation navigates the complexities of the energy landscape, continued collaboration between government entities, industry stakeholders, and consumers will be vital in building a resilient and sustainable energy future for all.