Cost of living: Around three-quarters of eligible households missed out on energy bill support

File photo dated 32/07/2018 of a handheld smart meter in a London home. Households will pay less for their gas and electricity from Saturday amid warnings that bills will still be almost double the amount they were before the energy crisis began. Issue date: Friday June 30, 2023.
The government has been urged to form a better action plan to protect households next winter. (Alamy)

Around 75% of eligible households in Britain have missed out on £300m worth of support from the government for their energy bills, according to a report.

Figures obtained by BBC News show more than 700,000 still haven't received a one-off payment – designated to help people with soaring energy costs amid the cost of living crisis.

Most people – those who pay for their energy via direct debit – will have received money from the government automatically, split into instalments of £66 or £67 between last October and March.

However, a number of groups, including renters who pay "all-in" fees, people living on park home sites, and people with houseboats, or those with a communal energy supply, had to apply themselves.

In February, the government said around 900,000 households with these unconventional set-ups were eligible to apply, but only 200,000 applications were made before the deadline of 31 May.

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Narrowboats on the Shropshire Union Canal, Chester, Cheshire, UK.
People living on houseboats were among those who missed out on support. (Alamy)

This suggests just over £300m of a possible £360m had not been claimed before the cut-off point.

Matt Cole, from the Fuel Bank Foundation charity, put this down to a number of factors.

He told the BBC that the unclaimed payments were partly down to the scheme being launched in the spring, rather than the winter when people were in the most need.

Cole also said families having to self-identify as needing the money, and a "somewhat complex process to claim help" were also to blame.

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A number of applicants told the BBC of the confusing ordeals they went through on the government's website, forcing them to apply multiple times.

The sluggish rollout of support has prompted a cross-party panel of MPs to call on the government to ensure consumers are better protected against energy price rises in the future.

The Public Accounts Committee (PAC) said about 1.7 million people were left waiting months for help due to the government's "lack of bandwidth" to ensure all groups – including those who were vulnerable – received support at the same time.

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It expressed "serious concerns" about the government's "lack of urgency in addressing the energy market failures that are leading to high energy bills for consumers".

Some 830,000 households in Northern Ireland only began receiving support with their energy bills in January, three months later than in Great Britain.

As of February, a quarter of vouchers issued for the Energy Bills Support Scheme for two million households on traditional prepayment meters had still not yet been redeemed.

The PAC said in June that it expected an update on plans to ensure energy affordability next winter, asking the Department for Energy Security and Net Zero to provide an update within six months.

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File photo dated 03/02/22 of an online energy bill, as people across Great Britain have been urged to take meter readings on Saturday as new energy prices come into force that are likely to save households hundreds of pounds a year. The average price for each unit of electricity that someone uses has been slashed to 30p per unit, while gas prices will drop to 8p per unit. It will save the average household around £426 a year on their energy bills, according to regulator Ofgem - which sets the levels and calculated average usage. Issue date: Saturday July 1, 2023.
Many applicants said they went through a frustrating process applying on the government website. (Getty)

Committee chairwoman Meg Hiller said: "Many of those who most needed help were kept waiting longest for it. For some households, every day left without support presented impossible choices.

"We need to see better understanding from government on vulnerable customers' circumstances so that help can be prioritised for those who need it most, and to deliver value for money in these extremely expensive schemes."

A government spokesperson said: "We spent billions to protect families when prices rose over winter, covering nearly half a typical household's energy bill.

"We're now seeing costs fall even further with wholesale energy prices down by over two-thirds since their peak.

"We are urging councils to process applications and complete final checks as quickly as possible to ensure all those eligible receive the support they need."