Households across Britain could see their energy bills increase by £500 next year if the Government’s price guarantee is raised. The scheme, introduced on October 1, currently limits annual energy bills to £2,500. In his Autumn Statement, Chancellor Jeremy Hunt extended the scheme for a year but raised it to £3,000 a year from April 2023. So should the Government offer more support? Vote in our poll.
In addition to capping bills by the Government offsetting the difference, households are also eligible for the energy bills support scheme which provides £400 towards energy bills, spread over six instalments between October and March. All households in Great Britain with a domestic electricity connection are eligible for the support which cost the Government £1.9billion in November
Some eight million households on means-tested benefits are also eligible for a £650 one-off payment to support them with the rising cost of living. While six million people claiming disability payments can receive £150 in support and pensioners who receive the winter fuel payment can claim a one-off £300 payment at the same time.
READ MORE: Energy bills to increase by £500 after price guarantee change
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, warned some households with high usage or inefficient homes “could see prices rise even further” She also expressed concern that the £400 energy bill grant will not be renewed next year, adding: “The cost-of-living support payments issued by the Government have been a real lifeline for many people trying to meet rocketing energy bills over the winter. As these payments come to an end for the vast majority of people further belt-tightening will be needed to meet the eye-watering rise in bills.”
Ofgem’s energy price cap will be updated from January 1, rising to £4,279. This means the average prepayment customer’s bill will go up from £2,559 to £2,579, while the typical pay on receipt of the bill will rise from £2,715 to £2,754.
Money saving expert Martin Lewis said: “For most people the change will be trivial, but it is disappointing to see more substantial increases, with some on prepay meters seeing rises of one percent, which include most of the poorest in society.”
Grant Shapps, Business, Energy and Industrial Strategy Secretary, said: “Changes to bills here are about the way the price cap operates to reflect cost to serve, rather than related to the energy price guarantee.”
So what do YOU think? Should the Government offer more support as energy bills soar again? Vote in our poll and leave your thoughts in the comment section below.
