Richer households will benefit more than poorer ones from Liz Truss' energy bills freeze and "winter will still be tough for many" despite the policy, experts have warned. Analysis by the Resolution Foundation think tank, which focuses on raising living standards, said because higher-income households typically use more energy, the richest fifth may gain an average of about £1,300 this winter compared to £1,100 for the poorest 20%.
The report concluded the first major policy intervention by the new Prime Minister was "all-but-inevitable" given the colossal increases in energy prices. The energy price guarantee (EPG) will restrict average domestic bills in England, Scotland and Wales to no more than £2,500 for two years from October - around £500 higher than they are now, but £1,000 lower than they would have been from next month under Ofgem's price cap.
Around 11% of households with the highest electricity and gas use will gain more than £2,000 from the policy while 13% will gain less than £500. The Resolution Foundation said the lack of targeting across both the EPG and previous interventions meant that support was not necessarily going where it was most needed.
