7 Accepted

Energy support schemes achieved lower fraud and error rates than pandemic-era programmes.

Conclusion
In designing the energy bills support schemes, the Department drew on lessons learned from support schemes during the pandemic, such as reducing opportunities for fraud by using information from energy suppliers to limit the need to apply for support and verify energy usage. It also worked with fraud experts in government, including the Public Sector Fraud Authority. Fraud and error levels in the energy support schemes were lower than for other schemes implemented during the pandemic.12 The Department estimated a fraud and error rate of 0.7% of scheme payments, worth £291.8 million.13 This is compared to 11% for Bounce Back Loans and an estimate by the Public Sector Fraud Authority of government fraud and error levels ranging from 0.5% to 5%.14 5 C&AG’s Report, para 1.6 6 C&AG’s Report, para 10 7 Qq 16, 18 8 C&AG’s Report, para 1.3 9 Q 9 10 C&AG’s Report, para 9 11 C&AG’s Report, para 17 12 Q 34 13 C&AG’s Report, para 10 14 C&AG’s Report, para 10 8
Government Response Summary
The government agrees with the committee's observation on lessons learned and commits to sharing overarching lessons learned reports and evaluations with the Committee by Q3 2025. DESNZ will also write to the Committee within one month of publication, outlining applicable learnings for future energy price crises.
Government Response
Accepted
HM Government Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2025 1.2 The Department for Energy Security and Net Zero (DESNZ) has conducted lesson learnt activities during delivery for each individual scheme, and across the portfolio of schemes since 2023. Lessons have included changing the way that the department delivers support to the non-domestic energy market, in addition to how the department overcomes 9 barriers in providing support to ‘hard to reach’ consumers. The department has circulated overarching lessons learned reports internally and will share them with the Committee, along with the domestic and non-domestic evaluation reports upon their publication in Q3 2025. 1.3 Alongside these lessons learnt activities, the evaluations of the domestic and non- domestic Energy Affordability schemes will be fully complete and published by Q3 2025. Within one month of publication the department will write to the Committee setting out the learnings from these schemes which can be applied in responding to any future energy price crisis. 1.4 The Domestic Interim Process and Early Outcome Evaluations (for Great Britain and Northern Ireland) were completed and published in April 2025. These evaluations collected a wide range of evidence, including demonstrating successful deployment of schemes at pace to large numbers of households. It also highlights lessons relating to promoting awareness of the automatically delivered schemes; improving engagement of the application-based schemes (including households using alternative fuels and/or with complex relationships with intermediaries); the difficulties of targeting beyond those on means tested benefits. 1.5 The forthcoming non-domestic energy affordability evaluation will include lessons for delivery to this sector, as well as highlighting how the department has improved its understanding of complex energy markets.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 1.3 yr
Report published 28 Mar 2025