Energy Bill Relief Scheme

3. What recent assessment he has made of the effectiveness of the energy bill relief scheme.

The Government’s assessment of the energy bill relief scheme shows we have spent over £5 billion to date—that is around £35 million a day to help businesses, charities and public sector organisations to pay around half of their wholesale energy costs this winter. This support has been unprecedented in nature, demonstrating that this Government are always on the side of business.

Linda from the Kitchen Croxley recently wrote to me about rising costs:

“I have spent nights awake imagining solutions…it would be so easy to give up… But my commitment to our customers and community remain so strong that I cannot do this”.

What is the Minister doing to support hard-working people such as Linda with their energy bills, so that she and other small businesses keep their doors open to customers?

I applaud the work my hon. Friend does to support businesses in his constituency such as the Kitchen Croxley. I understand times are tough for many small businesses, which is why the Government have implemented the energy bills discount scheme, to take effect until April 2024. Businesses fixed into more costly long-term contracts are more likely to receive the energy bills discount scheme payment support due to how the baseline discount is calculated.

An effective way to give consumers energy bill relief would be to stop energy companies seeking to increase direct debits while they are holding on to reasonable amounts of credit that belongs to consumers—money that they could use elsewhere. Can the Minister update us on what conversations she has had with Ofgem to ensure that it regulates for that practice, and will she support Members coming to the It’s Your Money campaign in Committee Room 11 at 2.30 this afternoon to show their support for getting that change?

That was an excellent plug by the hon. Member. He will know that I have been engaging with stakeholders—a whole range of stakeholders—including, of course, Ofgem.

A steelwork company in my constituency is very concerned that the constructional steelwork sector is not included in the list of industries eligible for higher support under the energy bill relief scheme, despite being a high energy usage business. Without this additional support, which would amount to over £75,000 for the company, it will inevitably have to pass on its additional costs to its customer, which is the Government. Will the Minister please review the eligibility criteria and consider adding the constructional steelwork sector to the list of eligible industries?

The energy bill relief scheme is expected to cost £7.3 billion over its duration. It provided a discount on the wholesale element of gas and electricity to ensure all businesses and non-domestic customers were protected from excessively high energy costs over the winter period. Of course, the EBDS will continue to provide a discount eligible to non-domestic customers, with a higher level of support provided under the energy-intensive industrial element of the scheme, which will be available to most energy and trade-intensive businesses, primarily in the manufacturing sector.

Our hospices provide tender, professional, essential care for people nearing the end of their lives, yet they are considered, when it comes to energy bill relief, as businesses. As a consequence, despite the fact that they have had a 350% increase in their energy costs, there is not a special programme or specialist scheme to assist them. I have raised this with the Minister before. What progress has she made in looking at a package to help to support our hospices and others who care for those in desperate need in our communities?

I thank the hon. Member for bringing up such an important subject. He will be pleased to know that this week I met Hospice UK to discuss that very subject and, indeed, I am working to see how we can be the most supportive.