In a bid to boost growth, the government will extend the Energy Price Guarantee at current levels for three more months, according to Wednesday’s budget. This means that the cap on typical household energy bills will remain at £2,500 instead of increasing to £3,000 from April until the end of June.
The chancellor is expected to outline a more comprehensive plan to grow the economy.
The UK economy has experienced no growth in recent months, and the Bank of England predicts that a recession will begin this year. To support households, the government has imposed a cap of £2,500 per year on typical energy bills, as well as a £400 winter discount.
The government had planned to reduce the energy bill help and end the £400 winter discount from 1 April, which had raised concerns among campaigners about increased hardship for families already struggling with the cost of living.
However, campaigners have pointed out that the falling wholesale energy prices have led to a significant reduction in the cost of providing support, and have urged the government to change course.
Chancellor Jeremy Hunt has stated that the Energy Price Guarantee will be maintained at its current level, citing high energy bills as a major concern for families.
This temporary extension will help bridge the gap until energy bills decrease from July onwards, alleviating the pressure on families and contributing to lower inflation.”