Monday, November 28, 2022

The average household is expected to pay £900 more a year on energy bills by 2023

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The price cap for average bills is set to rise from £2,500 to £3,000 from April, Chancellor confirms

Energy bills are expected to rise by £900 for millions of people from April next year after Chancellor Jeremy Hunt confirmed the Government will cut the generosity of its price guarantee support scheme.

Mr Hunt announced in Thursday’s Autumn Statement that he will allow the cap on average bills to rise from £2,500 to £3,000 from spring as he seeks to find tens of billions of pounds in savings to restore economic stability .

The universal payment of £400 to all households to help with bills this winter also ends in April, leaving many £900 more to spend a year.

The Chancellor also confirmed that low-income, vulnerable and pensioner households would continue to receive grants over the next year to ensure his program of spending cuts and tax hikes remains compassionate.

He announced a one-off payment of £900 for recipients of means-tested benefits, £300 for pensioner households and £150 for those on disability benefits.

The Government’s Energy Bills Support Scheme means households currently get a £66 or £67 reduction on their energy bills from October to March.

But when that comes to an end, combined with the increase in the guarantee, some consumers will find themselves worse off by £900 a year, which translates to £75 a month.

There were rumors that Ofgem’s price cap, which limits how much households can be billed for their energy, would be reintroduced.

That would have resulted in consumers having to pay a lot more, with energy analysts Cornwall Insight forecast on Thursday that levels would hit £3,739 a year from April.

But Mr Hunt said universal energy support would help keep inflation lower than it would otherwise be.

He said Sophy Ridge on Sunday: “We don’t want anyone to be able to afford not to heat their house this winter or even in future winters.

“But in the long run you need a plan that we as taxpayers don’t have to support very, very expensively.”

This is breaking news and will be updated.

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