Jeremy Hunt has announced that help with energy bills for households will only last until April next year. The newly-appointed Chancellor confirmed the decision during an economic statement on Monday (October 17).
Mr Hunt said there would be a review to look at a “new approach” to target support at those worst off after April. The Energy Price Guarantee, which was announced in Kwasi Kwarteng's mini-budget in September, set out to ensure that a typical household in Great Britain paid around £2,500 a year on their energy bill.
It was meant to last for the next two years, starting from October 2022. But during the emergency statement, the new Chancellor said: “The biggest single expense in the growth plan was the energy price guarantee.
"This is a landmark policy supporting millions of people through a difficult winter ad today I want to confirm that the support we are providing between now and April next year will not change. But beyond that, the Prime Minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices.
"So I’m announcing today a Treasury-led review into how we support energy bills beyond April next year. The objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.
“Any support for businesses will be targeted to those most affected and the new approach will better incentivise energy efficiency.”
The energy price cap - which regulates the amount that 24 million households pay for their gas and electricity - increased once again by around 80% at the beginning of October. It meant the average household would be forking out £3,549 per year for their bills - the highest the price cap has ever been.
The emergency economic statement comes just days after former Chancellor Kwasi Kwarteng was sacked by Liz Truss - just 38 days after being appointed. Just an hour after his axing had been confirmed on Friday (October 14), Jeremy Hunt was appointed as the new Chancellor.
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