top of page

UK govt has reduced the amount of help it will offer households with their energy bills

The government previously said households using a typical amount of gas and electricity would pay £2,500 annually. The price guarantee applies to all households in England, Scotland and Wales, with the "same level of support" available in Northern Ireland.

However, it will now end in April 2023. So, only this winter's bills will be covered by the policy.

For households that do not receive any further support, a typical annual energy bill could be £4,347 in the spring, according to analysts Cornwall Insight.


What help will businesses get with bills?

Business customers were only ever promised help for six months, with a review to decide what to do after that. The government says any subsequent help will be "targeted to those most affected".


  • businesses are given a discount based on a "government supported price" of 21.1p per kWh for electricity and 7.5p per KWh for gas

  • the government says this is less than half the wholesale prices expected this winter

  • organisations on fixed price contracts will be eligible if their deal started after 1 April 2022

  • those on variable tariffs will receive an automatic discount for each unit of energy used

  • the savings will begin to appear in November's bills (backdated to October) and will be applied automatically

  • a review will be published in three months' time to identify "vulnerable" organisations needing support after March 2023


The scheme will apply to all non-domestic energy customers in England, Scotland and Wales, with a parallel scheme in Northern Ireland.


Other support for households include:

Eight million low-income households who receive certain benefits or tax credits are receiving £650 in two payments.

Pensioner households will get £300 and some disabled people will be paid £150.

This help is being partly funded by a temporary windfall tax on oil and gas companies.

In addition, vulnerable families can claim help through the Household Support Fund, and the Warm Home Discount scheme.

Energy companies also run hardship funds, although the regulator Ofgem warned that most firms need to do do more to help customers who are struggling.



3 views0 comments

Comments


bottom of page