Energy bill support to be extended until summer

Energy bills had been expected to rise in April. Credit: Pexels

The energy price guarantee (EPG) will be extended from April to June at its current level, capping average annual household bills at £2,500, the Treasury has confirmed.

The three-month extension will save a typical household around £160, the government said.

The EPG had been due to rise to £3,000 in April, but falling energy prices mean that the current level can be extended to “bridge the gap” until costs fall below the cap.

Chancellor Jeremy Hunt, who included the measure in his Budget being unveiled later on Wednesday, 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.”

Prime Minister Rishi Sunak said: “We know people are worried about their bills rising in April, so to give people some peace of mind, we’re keeping the energy price guarantee at its current level until the summer when gas prices are expected to fall".

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Benefits reform and pensions allowances are also expected to form part of the Budget when Mr Hunt addresses MPs on Wednesday afternoon - even if he is expected to resist calls from Conservative backbenchers to go further on tax cuts.

Reports of a multibillion-pound expansion of free childcare for one and two-year-olds received a tentative welcome on Tuesday, as parents and nurseries awaited the full details from the chancellor.

The plan is believed to include 30 hours a week of childcare for parents in England with one and two-year-olds, building significantly on the current provision.

The chancellor is expected to reference the “difficult decisions” taken last November to stabilise the markets, following the short-lived premiership of Liz Truss, as he pitches a plan the government hopes can deliver “sustainable” growth.