Electricity bill relief worth £30 a year confirmed for NI households

Inset: Northern Ireland’s Economy Minister Dr Caoimhe Archibald

Northern Ireland’s Economy Minister has moved to clarify what she describes as “misleading” claims about an £81 million support package aimed at helping households with electricity bills.

Dr Caoimhe Archibald said inaccurate assertions about the funding risk confusing the public at a time when many families are already worried about rising energy costs.

The funding, announced in the British Chancellor’s Autumn 2025 Budget, will provide financial support for domestic electricity consumers in Northern Ireland. However, the Minister stressed that the money will not be available immediately and will instead be distributed over a three-year period.

Funding not available immediately

Dr Archibald said some claims suggested the full £81 million would be available in the coming weeks, which she described as incorrect.

“It is deeply disappointing that false assertions are being made in relation to this funding, which will mislead people at a time when they are really worried about escalating energy bills,” she said.

“To be absolutely clear, my Department will not have £81million to support electricity bills in three weeks’ time, the funding is over three years.”

She explained that households cannot receive the support until the Westminster Parliament amends the Energy Prices Act 2022 — a step expected before the summer recess.

“As soon as this legislation is passed my Department will be ready to ensure local electricity consumers benefit,” she added.

Households expected to see £30 annual reduction

Once implemented, the support is expected to provide domestic electricity customers in Northern Ireland with a reduction of around £30 per year on their electricity bills over three years.

More than 850,000 households are expected to benefit.

The annual reduction is lower than the £150 reduction available in Britain, reflecting the fact that electricity consumers in Northern Ireland do not pay both of the additional levies that apply there.

The funding will be provided through Annually Managed Expenditure (AME).

Minister rejects means-testing claims

Dr Archibald also rejected suggestions that the funding could be redirected to support only the most vulnerable households through means testing.

She said the structure of the support was determined by the British Government and would apply to all electricity consumers in the same way as in Britain.

“I’m also disappointed that false claims have been made today that this funding could be funnelled to support our most vulnerable homes through means testing. This is irresponsible misinformation,” she said.

“The nature of the support was determined by the British Chancellor, who has decided that all consumers’ electricity bills should be reduced and that this would apply in the same way here as in Britain. While this might not be the approach I would take, it is the approach adopted by the British Government.”

Call for urgent support amid rising costs

The Minister also criticised attempts to link the funding to the current surge in energy prices linked to conflict in the Middle East.

She said she has already raised the issue of immediate support for struggling households with the British Energy Minister.

“On this matter, I have spoken to and written to the British Energy Minister, urging immediate support for households facing hardship,” she said.

Dr Archibald also rejected claims that members of the Economy Committee had not been informed about the funding arrangements.

“Claims that members of the Economy Committee did not have information on this matter are disingenuous, given that I updated the Committee in person on this on 21 January,” she said.

Departments working to deliver scheme

Officials from the Department for the Economy are continuing to work with the Department of Finance, HM Treasury and the Department for Energy Security and Net Zero to ensure the support can be delivered once legislation is amended.

The Minister said that work remains ongoing to ensure households in Northern Ireland receive the support to which they are entitled.

At a glance

• Economy Minister Dr Caoimhe Archibald has clarified claims about an £81 million electricity support fund.

• The funding was announced in the British Chancellor’s Autumn 2025 Budget.

• The £81 million will be delivered over three years, not immediately.

• Households are expected to see electricity bill reductions of around £30 per year.

• More than 850,000 households in Northern Ireland will benefit.

• The scheme cannot begin until Westminster amends the Energy Prices Act 2022.

• Legislative changes are expected before the summer recess.

• The support will apply to all electricity consumers rather than being means tested.

• Departments in Belfast and London are working together to implement the scheme.