The Energy Bills Support Scheme came into effect on 1 October 2022 to help tackle the energy crisis. This guarantee means that the average household will have their energy bills capped at £2,500 a year until 31 March 2023. The actual energy bill for households could be higher or lower depending on the size of the home, how well it is insulated, how many people live there and how much energy is used.

The Department for Business, Energy & Industrial Strategy has published a press release confirming that £1.8 billion was paid out in first month of government scheme. This helped over 27 million households across Great Britain. There have been some issues with some households not receiving their discounts and this is being investigated. 

In addition, £136 million worth of vouchers have been provided to 2 million prepayment meter users. The government is also urging anyone who has received vouchers to redeem them as soon as possible. Suppliers will tell customers where to redeem them, for example at a Post Office branch or a PayPoint shop. Payzone outlets are unable to accept the vouchers.

From 1 April 2023, the scheme will become less generous with the typical household paying on average £3,000 a year (an increase of £500). This will save the Exchequer around £14 billion next year while still saving the typical household £500 a year off their energy bills, compared to the price of the energy price cap. The scheme is expected to run until 31 March 2024.

Source: New feed