By Sohaib Shams
More than half of UK households eligible for a new £100 energy payment do not intend to spend it on their bills, according to a survey commissioned by holiday provider On the Beach.
Survey Details
Censuswide polled 1,425 householders in council tax bands A to D between October 30 and November 2. The payment, announced by Chancellor John Healey in last week’s Budget, will be paid directly into bank accounts in January at a cost of £2.6 billion.
Spending Plans
The poll found that 57% of eligible households will not use the money for energy costs. Instead, 32% said they would spend it on groceries, 13% would pay off debt, and another 13% would put it into savings. Some 15% planned to put part of the payment toward a summer holiday, rising to 24% among 18- to 44-year-olds.
Government Response
An HM Treasury spokesman said the payment is designed to give families “breathing space” and comes on top of a £150 reduction already applied to bills in April, plus an extension of zero VAT on electricity expected to cut a further £50 from the April price cap.
Criticism and Context
The End Fuel Poverty Coalition warned that the £100 payment would “barely dent” predicted energy cost increases, noting that because it is paid into general accounts it may not be spent on heating. Ofgem’s price cap rose 3.6% to £1,723 for a typical household on October 1, with a further 22% increase forecast for January.
