The Government has extended the energy price guarantee by a further three months, providing more support for households struggling with soaring energy bills.
The energy price guarantee caps the average household bill at £2,500 a year. This limit was due to increase to £3,000 in April, but households will now receive the current levels of support until July.
Chancellor Jeremy Hunt announced the extension in his Spring Budget yesterday (15 March), claiming that it will save a typical household around £160.
While energy prices are 50% lower than anticipated, they are expected to remain steep until July.
According to Prime Minister Rishi Sunak, the decision will give families “peace of mind” as well as help the Government’s plans to halve inflation in 2023.
Hunt said:
“High energy bills are one of the biggest worries for families. With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
However, the energy bills support scheme (EBSS) – an automatic £400 discount on energy bills over the winter – is still set to end in April.
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