Support with rising energy bills

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 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.