5th Report - Tackling the energy cost crisis
Select Committee
Energy Security and Net Zero Committee
HC 736
29 October 2025
Government response
4th Special Report – Tackling the energy cost crisis: Government Response · published 21 Jan 2026
Recommendations & Conclusions
8 results
1
Conclusion
Acknowledged
Accelerate effective data sharing between stakeholders to improve support schemes and tackle fuel poverty.
Conclusion
More effective data sharing between key stakeholders will be essential in making all government support schemes fairer, better targeted and cost effective. We welcome the Government’s plans to improve data sharing across Whitehall but believe it must move further and …
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Government Response Summary
The government acknowledges the priority of improving data sharing and outlines ongoing work across departments, including a working group with industry, to enhance data accuracy and availability for better targeting support.
Department for Energy Security and Net Zero
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3
Conclusion
Acknowledged
Millions in fuel poverty or with disabilities remain ineligible for Warm Home Discount scheme.
Conclusion
The Warm Home Discount is a crucial mechanism to tackle fuel poverty and we welcome the Government’s plans to broaden eligibility for the scheme for winter 2025–26. However, it is deeply troubling that millions of households in fuel poverty and …
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Government Response Summary
The government highlights its recent expansion of the Warm Home Discount to include an additional 2.7 million households, bringing coverage to 45% of fuel-poor households. It notes the committee's recommendation for further extension and increased value, stating it will explore improvements and respond to a consultation in due course.
Department for Energy Security and Net Zero
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8
Conclusion
Acknowledged
Critical need exists for targeted bill support and social tariff for vulnerable consumers.
Conclusion
There is a critical need to provide greater, targeted bill support for low income and vulnerable consumers throughout the year in the form of a social tariff. We are concerned by the lack of progress to date. (Conclusion, Paragraph 34)
Government Response Summary
The government acknowledges the need for more targeted support for vulnerable households and indicates it will consider 'all options for future bill support' as part of a consultation on extending the Warm Home Discount and a review of the Fuel Poverty Strategy.
Department for Energy Security and Net Zero
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11
Recommendation
Acknowledged
Explore reforming Cold Weather Payment to provide daily payments during sub-zero forecasts.
Recommendation
The Government should explore reform of the Cold Weather Payment considering whether a £10 payment could be made to eligible households every day that the Met Office forecasts that the average temperature will be zero degrees or below the following …
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Government Response Summary
The government states it keeps policies under review but describes the current Cold Weather Payment system, justifying its existing structure of £25 for seven consecutive days of cold weather, without committing to explore the proposed daily payment reform.
Department for Energy Security and Net Zero
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12
Conclusion
Acknowledged
UK experiencing a severe and escalating energy debt crisis impacting millions of customers.
Conclusion
The UK is experiencing a severe energy debt crisis that shows little sign of abating. Millions of customers currently owe more than £4bn in debt and arrears, a record figure that has more than tripled in just five years. This …
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Government Response Summary
The government acknowledges the severe energy debt crisis and the ongoing impact of the energy price crisis, but mainly describes Ofgem's reforms to price control mechanisms to prevent future windfall profits and ensure value for money, without committing to specific government action on a permanent debt relief scheme.
Department for Energy Security and Net Zero
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13
Conclusion
Acknowledged
Energy networks accrued £4bn windfall profits while consumers face severe energy debt crisis.
Conclusion
While millions of consumers struggle with energy debt and the fallout of the recent energy price crisis, there is no shortage of money in the wider energy system. It is completely inexcusable that while households are forced to ration energy …
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Government Response Summary
The government acknowledges the energy debt problem and details Ofgem's active reforms to price control mechanisms (RIIO-3) to prevent future windfall profits by strengthening controls and cutting the link with inflation, which it states should deliver value for money.
Department for Energy Security and Net Zero
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15
Conclusion
Acknowledged
Financially vulnerable customers incur unjustifiable "poverty premium" due to chosen energy payment method.
Conclusion
It is unjustifiable that financially vulnerable customers are expected to pay more for their energy under the Energy Price Cap because of their chosen payment method. This constitutes a poverty premium. (Conclusion, Paragraph 57)
Government Response Summary
The government acknowledges the belief that all consumers should pay a fair price and outlines the Energy Price Cap's purpose, noting Ofgem's responsibility for its methodology. It further describes the Warm Homes Plan as a significant investment to make bills affordable for vulnerable households, without directly addressing the 'poverty premium' related to payment methods.
Department for Energy Security and Net Zero
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16
Conclusion
Acknowledged
Time-of-use energy tariffs risk deepening inequalities without vulnerable consumer protections.
Conclusion
Time-of-use tariffs that allow customers to optimise the benefits of low carbon technologies such as heat pumps, electric vehicles and solar panels are welcome additions to the retail market, rewarding customers with low energy prices and supporting flexibility of the …
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Government Response Summary
The government acknowledges the belief in fair energy prices and highlights the existing Energy Price Cap and the Warm Homes Plan, a significant investment in home upgrades to reduce bills for vulnerable households, but does not directly address the concerns about time-of-use tariffs deepening inequalities or the need for a social tariff.
Department for Energy Security and Net Zero
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