Energy bill lifeline for millions as Treasury poised to scrap 3,000 rise in weeks
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Energy bill lifeline for millions as Treasury poised to scrap 3,000 rise in weeks
The nation is just weeks away from another potential rise to energy bills which are already eye-wateringly expensive - but the Treasury may be about to step in.
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16:58, Thu, Mar 2, 2023
| UPDATED:
18:49, Thu, Mar 2, 2023
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Government 'may cancel energy price guarantee rise' says Lewis
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Millions of households across the UK could soon be handed a major energy billslifeline. This is because the Treasury is considering plans to scrap the upcoming increase to the Government's Energy Price Guarantee. Chancellor Jeremy Huntis reportedly looking at plans to support families further by preventing the upcoming 500 increase in energy bills, which would likely push more families into fuel poverty.
Since October last year, the Government has subsidised the cost of gasand electricity, limiting the increase in energy bills to 2,500 a year, instead of the previous 3,549.
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As households brace for a staggering 20 percent increase in energy bills within weeks, the Treasury has so far resisted pressure to keep the Energy Price Guarantee at 2,500.
But on Tuesday government officials confirmed that plans to lift the price cap from April were currently under review and could be dropped in the Spring Budget in two weeks' time.
The Financial Times reported one officia
l as saying: At present there is no plan to change the policy in the Budget but there could be."
A Downing Street spokesperson confirmed to them that the policy was being re-examined: All I would say on this is its something we are just keeping under review.
Energy bill lifeline for millions as Treasury poised to scrap 3,000 rise in weeks
(Image: Getty)
Energy bills will increase by 500 in April
(Image: Getty)
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This comes after energy regulator Ofgem reduced its price cap to 3,280 from April 1, meaning the Government will pay on average 280 a year for each typical household under the guarantee if the cap increases.
Previously, Ofgem had set the price cap on April energy bills to 4,279, meaning that the Government will now be subsiding almost 1,000 less per household compared to previous estimates.
Meanwhile, experts at Cornwall Insight predicted that the Ofgem price cap, which limits the unit price energy suppliers can charge, will continue to reduce this year, with average bills of 2,153 a year from July and then increasing slightly to 2,161 from October this year.
Grant Shapps, the Secretary of State for the Department of Energy Security and Net Zero also said that he was "sympathetic" to calls for more support for struggling families.
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How much energy bills are households currently paying
(Image: Express)
Meanwhile, Grant Shapps said he was "sympathetic" to calls
(Image: Getty)
Thursday, March 2, 2023 at 4:58 pm