A rapid rise in energy prices for households and businesses this year has led the UK government to outline its energy price guarantee plan, designed to ensure a typical household will pay no more than £2,500 annually for two years from October 1 2022. Businesses will have their energy costs guaranteed for six months from the same date. After this, the government says it will target “vulnerable sectors” such as hospitality with more help, but has not yet provided more details.
Any additional energy costs beyond the government’s guarantee will be covered by the government. And while it has not yet released any financial information about the plan, this could cost more than £100 billion in the first year alone, according to figures based on 2019 consumption from the Institute for Fiscal Studies.
