Households across Scotland will be forced to face increased energy bills when the cap is changed.
During Thursday's Autumn Budget statement, Chancellor Jeremy Hunt told MPs that difficult decisions were required to ensure a "shallower downturn". However, he explained that the economy was still expected to shrink by 1.4 per cent in 2023.
The Office for Budget Responsibility (OBR) forecasts the UK's inflation rate to be 9.1 per cent this year, with 7.4 per cent expect in 2023. And this means there will be a squeeze on living standards.
READ MORE: Autumn Statement 2022 - what we know and how it will affect Glaswegians
The energy cap was a key concern ahead of the statement, with Hunt confirming the average household energy bill will increase from £2,500 to £3,000 from April 2023, Mr Hunt said “this still means an average of £500 support for every household”.
Additionally, there will be no universal payment of £400 to every household. Instead there will be additional cost-of-living payments for people on means-tested benefits, pensioner households and those on disability benefit.
READ NEXT
National Living Wage increase will see Glasgow workers £1,600 a year better off
Autumn Statement: Glasgow schools to benefit from funding boost
Glasgow school strikes: When it's happening, what it means and are there any more planned?
Glasgow schools to close next week for strike as parents warned to make other arrangements
Tesco introduces yellow sticker change for people seeking reduced items
