UK Households Braced for £100 Energy Bill Rise as Chancellor Hunts Support
Households in the UK are bracing for another increase in energy bills this spring. Experts predict a rise of around £100 under Ofgem's price cap. However, Chancellor Jeremy Hunt is set to unveil new support measures in the upcoming Budget to help ease the financial strain.
The energy support package, to be announced in three weeks, includes several key initiatives. One notable change is the axing of VAT from household energy bills, currently charged at 5%. This move is estimated to reduce the average bill by £86 a year.
Additionally, the Chancellor is considering cutting so-called green levies from bills. These charges, which fund initiatives like renewable energy and energy efficiency, currently add around £140 to the average electricity bill and £50 to the average gas bill. The reduction in these levies could significantly slash energy bills for millions of households, with estimates suggesting a total saving of £170 per household.
The new energy support package is expected to cost the government around £3 billion a year. It comes as households continue to grapple with soaring energy costs, with the energy price cap set to rise again in the spring. The exact details of the support measures, including the reduction in green levies and the potential scrapping or reduction of the Energy Company Obligation, are expected to be revealed in the Budget.
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