Individual household bills will vary depending on how much they use. Under the energy price guarantee, the state limits the unit rate that energy companies can charge households for each unit of gas or electricity. He said other vulnerable groups, such as people with medical conditions or carers, were “at acute risk of being left out in the cold unless they are supported by local authorities”. “That's important, but there are big gaps in these measures especially for low-income households not on means-tested benefits.” “Boosting welfare payments and the targeted support that has been announced for energy bills will help some of the poorest households and at-risk groups. For most, it looks as if it will get even harder. However, National Energy Action, the fuel poverty charity, said the breathing space for struggling households would now be “shorter lived and less helpful”.Īdam Scorer, chief executive, said: “Sadly, this means there is now no end in sight to the energy crisis for struggling households. Pensioner households will receive £300 while people on disability benefit will get payments worth £150. The energy price guarantee applies to all households, and households on means-tested benefits will get extra cost of living payments next year worth £900. Typical bills from April could be lower than £3,000 if wholesale prices fall, although current expectations do not suggest that. That compares to previous expectations of £30bn between October and March. The Treasury predicts the guarantee will cost taxpayers £37.4bn-£24.7bn in 2022-23 and £12.7bn the following years. Jeremy Hunt has taken the axe to the level of support offered after taking charge of the nation’s finances amid the turmoil caused by Truss’s mini-Budget.Īs well as revising the £2,500 level to £3,000 from April, the support will now last until April 2024, rather than October 2024 as previously planned. The energy price guarantee was originally put in place by Liz Truss in one of the first acts of her short-lived premiership, amid warnings that annual bills could climb above £5,000. Typical annual bills under the guarantee of £2,500 currently and £3,000 from April compare to pre-crisis levels of £1,277 in October 2021. “With prices forecast to remain elevated through next year, this will still mean an average of £500 support for every household.” “From April, we will continue the Energy Price Guarantee for a further 12 months at a higher level of £3000 per year for the average household. Speaking in parliament, Mr Hunt said: “One of the biggest worries for families is energy bills However, fuel poverty campaigners warned that the crisis facing struggling households “looks as if it will get even harder” now support has been reduced. The state has stepped in following a surge in wholesale energy prices worsened by Russia’s war on Ukraine, which risked tipping millions into fuel poverty.
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