Flood risk management and funding
This briefing paper provides an overview of flood and coastal risk management in the UK, including which bodies manage risk, current policy on flood risk management, and how flood funding works.
The Government’s Energy Bills Support Scheme will provide a £400 discount on electricity bills to help households with the rising cost of energy. This briefing summarises the policy, first announced in February and updated in May and July 2022, as well as the reaction to it. It also provides information on eligibility for the scheme and answers to frequently asked questions.
Energy Bills Support Scheme: Government policy and FAQs (504 KB , PDF)
Since this briefing’s publication the Government has updated its guidance on the Energy Bills Support Scheme (EBSS) and the Energy Bills Support Scheme Alternative Fund, which provide a one-off £400 payment to households to help with bills over winter 2022-23. For updated information on these schemes, see section 2 of the Library briefing Constituency casework: Government support for energy bills. The briefing also covers new energy bill support schemes introduced in autumn/winter 2022-23, including:
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The price of energy has increased significantly in the UK and globally since summer 2021. There is widespread concern about the how this will affect domestic and commercial energy consumers.
This briefing summarises the Government support package that was first announced following the announcement of a 54% rise in the cap on gas and electricity in February, and which has since been updated (in May and July), as well as the reaction to the package. It also answers frequently asked questions about support with energy bills.
Wholesale energy prices increased rapidly in the second half of 2021. Many consumers were protected, at least initially, by the energy price cap. However, the price cap increased by 54% in April 2022. There were further large jumps in wholesale prices after Russia invaded Ukraine.
Many observers predict that the energy price cap (also known as the Default Tariff Cap) will increase substantially in October 2022. In May the chief executive of Ofgem said it could rise by 40% to around £2,800 in October. Since then forecasts have increased and the latest from Cornwall Insight is around £3,580 or 80% above the current cap, with further rises forecast in 2023.
Ofgem is currently expected to announce the next price cap level on 26 August 2022.
The Chancellor of the Exchequer first announced an Energy Bills Rebate support package to help households with rising energy bills on 3 February 2022, in response to the increase to the Default Tariff Cap.
The original Energy Bills Rebate comprised an Energy Bills Discount and a Council Tax Rebate. The Chancellor announced an expansion of the Warm Homes Discount Scheme at the same time.
He said the Energy Bills Discount would be given to all domestic electricity customers in Great Britain as “an up-front discount on their bills worth £200” in autumn 2022. (Energy policy is almost entirely devolved in Northern Ireland). At the time, the Government proposed customers would pay the money back through bills in later years.
A Government factsheet provided more information on the council tax rebate. The main points included:
On 1 April 2022, the Government published an explainer of the Energy Bills Discount, renaming it the Energy Bills Support Scheme (EBSS).
The Chancellor announced a further Cost of Living support package on 26 May 2022 to help households cope with high inflation. As part of this, he said the EBSS would be doubled to £400 and would now be provided as a non-repayable grant.
An HM Treasury factsheet on the cost of living support package and a Department for Business Energy and Industrial Strategy (BEIS) Energy Bills Support Scheme explainer set out the details of the EBSS as amended. Key points include:
The Government held a consultation on technical proposals for the EBSS from 11 April to 23 May 2022. It published its consultation response on 29 July 2022, setting out its final policy decisions for delivery of the EBSS.
A press release and an update to the EBSS explainer summarised the new announcements, including:
The documents also set out how customers will receive their discount:
The consultation response reconfirmed that the Energy Bills Support Scheme will apply to consumers in England, Scotland and Wales. It said the Government is “working urgently to ensure that the people of Northern Ireland receive the equivalent support as soon as possible”.
The response also provided detailed information on the scheme’s eligibility, grant design, compliance, enforcement and sanctions, and managing the costs of implementing the scheme.
Alongside the response, the BEIS published a draft Secretary of State Direction to suppliers. A final version will be issued ahead of the scheme’s launch.
The Library briefings Domestic energy prices and Energy bills and tariff caps (August 2021) provide more information on the background to rising energy prices and the energy price cap.
The Library briefing Increasing cost of living has links to the Library’s wider publications on the rising cost of living in the UK, including cause of inflation, the effect on households, and Government support.
Energy Bills Support Scheme: Government policy and FAQs (504 KB , PDF)
This briefing paper provides an overview of flood and coastal risk management in the UK, including which bodies manage risk, current policy on flood risk management, and how flood funding works.
Record energy price rises have led to concern that more families will be drawn into ever deeper fuel poverty. This briefing at how fuel poverty varies across the UK, policies to address fuel poverty, and stakeholder comment on the issue.
This briefing covers how the high period of inflation in the UK from 2021 to 2024 continues to affect household incomes, spending, poverty, savings and debt.