The government has confirmed that it will extend support for energy bills at current levels until the end of June ahead of today’s Budget. The energy price guarantee was due to rise to £3,000 a year from April but will instead stay at the current £2,500 level until June.
However, the £400 winter fuel payment, which saw households given a monthly boost since October, will not be renewed. While this means that costs will rise in the short term, the gap will not be as large as first feared.
Rising energy prices are towards the top of the agenda as Jeremy Hunt, the Chancellor, prepares to deliver his Spring statement today. Here’s all the support currently available and what further help is expected.
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What does extending the price guarantee mean?
The energy price guarantee was set up by the Government to replace the energy price cap when bills began to skyrocket. The guarantee was lower than the price cap and as a result, prevented energy bills from spiralling out of control.
The energy price guarantee was set to rise from £2,500 to £3,000 for a typical household from April. However, it was confirmed by the government ahead of the budget that this would stay at the £2,500 rate.
According to the BBC, the calculations for a typical household is based on a direct debit customer using 12,000 kWh (kilowatt hours) of gas and 2,900 kWh of electricity a year. A kilowatt-hour is a unit of energy used to calculate your bill.
Will the £400 winter fuel payment continue?
The Government has revealed that the winter fuel payment, a £400 non-repayable grant paid in six instalments between October 2022 and March 2023, will not be renewed. This means that for most people, bills will increase slightly, however, as we approach the summer months it is anticipated that energy usage will decrease as the weather warms.
What other energy bill support is available?
Despite not renewing the winter fuel payment, the government will continue to offer extra support to certain groups of people across the UK. The main one being the cost-of-living payment, a £900 grant paid in three instalments, which is aimed to help low-income families cope with rising costs.
Pensioners will also be entitled to a further £300 grant while people on certain disability benefits will be paid £150. Only those on certain benefits, including Universal Credit, qualify for the payment and exact payment dates have yet to be determined.
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