The Chancellor, Rishi Sunak delivered a statement to the House of Commons on 3 February 2022 announcing a number of measures to help people cope with fast rising energy costs.
Record increases will see a 54% jump in the energy price cap from 1 April 2022 affecting some 22 million customers across the UK. This will mean the average consumer paying by direct debit will face an annual increase of £693 from £1,277 to £1,971 per year with those paying by prepayment facing even higher costs. The price cap is updated twice a year and tracks wholesale energy and other costs that have been seen.
The emergency package of measures announced by the Chancellor will see the government offer support with energy bills worth £9.1 billion in 2022-23.
This includes:
- A £200 discount on their energy bill this Autumn for domestic electricity customers in Great Britain. This will be paid back automatically over the next 5 years starting in 2023-4 when wholesale gas prices are expected to come down.
- A £150 non-repayable Council Tax Rebate payment for all households that are liable for Council Tax in Bands A-D in England.
- £144 million of discretionary funding for Local Authorities to support households who need support but are not eligible for the Council Tax Rebate.
The devolved administrations will receive around £715 million funding through the Barnett formula where UK Government support doesn’t cover Scotland, Wales, or Northern Ireland.
MJB Avanti | 08000 388799
Source: Informanagement