The UK Government’s immediate response to the energy crisis caused by COVID-19 and Russia’s invasion of Ukraine has been praised by the National Audit Office (NAO), which has described the plans implemented as an ‘unqualified success’.
However, the measures were designed to protect businesses and households from soaring energy prices, which have seen average annual bills jump from £1,277 in 2021-2022 to almost £4,000 by early 2023.
Government Moves Quickly to Counter Energy Crisis
Between 2022 and 2023, the government launched eight support schemes, including the Energy Price Guarantee, costing £44 billion—far below the initial estimate of £139 billion. Factors such as lower-than-expected wholesale energy prices and a milder winter in 2022 contributed to the reduced expenditure.
The Department for Energy Security and Net Zero (DESNZ) reported that these efforts helped prevent approximately 289,000 households in England from falling into fuel poverty. Furthermore, fewer households resorted to rationing or disconnecting their energy use during the crisis.
Despite the overall success, DESNZ noted that around 238,000 households still fell into fuel poverty. Groups such as liveaboard boaters and homes without direct electricity supplier connections faced challenges in accessing support, with uptake among these groups significantly lower than expected.
Tackling Fraud While Balancing Urgency
Due to the haste with which the government has implemented universal support, the NAO has recognized the dangers of value for money. Although the majority of eligible recipients benefited, the NAO found cases where money was paid to people who did not need it. There was relatively little fraud and error; only 0.7% of payments, or £291.8 million, were considered problematic.
Challenges in understanding commercial energy use also led to uniform support for businesses, regardless of their actual energy consumption.
Lessons For the Future
The NAO emphasized the need for DESNZ to refine its approach for future crises. Gareth Davies, head of the NAO, noted: “DESNZ needs to prepare for future energy price spikes and understand how potential interventions can maximize value for money.”
Efforts to improve engagement and tailor support more effectively are already underway. A DESNZ spokesman stressed the importance of clean, homegrown energy to reduce reliance on volatile fossil fuels, stating: “Our mission for clean power by 2030 is key to achieving energy independence and reducing household bills.”
