Chancellor extends the cap on energy prices
Millions of households will get more support with high energy bills to help ease the cost-of-living crisis, Chancellor Jeremy Hunt confirmed in his Spring Budget.
Mr Hunt said that the Energy Price Guarantee – which is currently protecting households by capping typical energy bills at £2,500 – will be maintained at the same level for a further three months until July – worth £160 in total for a typical household.
The Chancellor's threemonth extension means households won't feel the full force of Ofgem's Price Cap between April and June – which currently stands at £3,280 – helping to bridge consumers into the summer when it is hoped world energy prices will be lower.
These lower wholesale gas prices are expected to feed through to household bills from July, when predictions are that the Ofgem Price Cap will reach an estimated £2,100 a year for a typical household.
After reports of struggling bill-payers being forced onto more-expensive energy prepayment meters, the Chancellor has also acted to end the metered "premium" from July.
That will mean people on pre-payment meters pay the same per unit as those paying by direct debit.
The Treasury says this will save more than four million households £45 a year on their energy bills.
Mr Hunt said: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the Energy Price Guarantee at its current level. 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."