Energy price guarantee to rise to £3000 per year for average household

Help with energy costs has been extended for all households from April 2023, but at a less generous level than at present, meaning millions will still face higher bills.

The bill for a typical household will rise to £3,000 in April, from £2,500 now, Chancellor Jeremy Hunt announced. Without this help, average bills would have gone up to about £3,740, according to consultancy Cornwall Insight.

Mr Hunt also announced additional cost-of-living payments for the most vulnerable.

He said this meant an extra £900 for low-income households on means-tested benefits, which is £250 more than the equivalent payment this year.

Pensioner households will get £300, and people on disability benefit will get £150, which is the same as this year.

Says Rocio Concha, Which? Director of Policy and Advocacy:

“Additional support for the most financially vulnerable and the new price guarantee will bring some much-needed relief to those struggling most, but it may still not be enough – particularly if bills remain this high next winter.

“It’s not just those on the lowest incomes who will struggle to afford higher bills – for example, people on lower-middle incomes will just miss out on extra support and will need to find more than £1,000 extra to cover their energy costs. The government must ensure that as energy prices remain incredibly high, consumers are not left struggling to make ends meet.

“With energy bills higher than ever, the government’s announcement of further help for consumers to make their homes more energy efficient is an important step in the right direction. This support should be delivered as quickly as possible and underpinned with accessible independent advice and robust consumer protections.”