Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the economic effect of green levy subsidies on low-income households.

The Energy White Paper has affordability at its heart and includes measures we are bringing forward to keep bills affordable. As set out in the Energy White Paper, the average household dual fuel bill in 2019 was similar to 2010. However, the underlying costs have changed. Over the past decade, electricity prices have risen because of policy and network costs, while gas prices have fluctuated, reflecting movements in the wholesale gas price. However, consumers have used less energy, which has balanced out the cost increase. Based on the policies in the Energy White Paper, we estimate that household dual fuel bills will be, on average, broadly similar in both 2025 and 2030 to 2019.

We see improving the energy efficiency of homes as the best long-term solution to reduce energy bills and tackle fuel poverty. The Energy Company Obligation, worth £640m per year, is focused on low-income and vulnerable households. The Green Homes Grant, launched in September 2020, is a £2 billion programme which will help improve the energy efficiency of homes in England. Of the £2 billion, 500 million is allocated to the Local Authority Delivery scheme which is specifically aimed at low income, vulnerable and fuel poor households.

In addition to the available funding to support low-income households with improving the energy efficiency of their homes, we recognise that some households may need more immediate support and so also assist with energy bills for low income and vulnerable consumers through the Warm Homes Discount, Winter Fuel Payments and Cold Weather Payments.