What is the energy price cap and what will happen to bills?
Help with energy costs will be less generous from April, with bills for a typical household going up to £3,000.
However, there will be more support for the most vulnerable.
The assistance provided to businesses is also expected to reduce from March.
What extra support will be available?
From April, some groups across the UK will receive cash payments to help with energy costs:
- £900 to households on means-tested benefits
- £300 for pensioner households
- £150 to people on certain disability benefits
Further details will follow.
What is the energy price guarantee and how is it changing?
Under the current energy price guarantee, a household using a typical amount of gas and electricity will pay £2,500 annually.
The guarantee began in October and was originally meant to last for two years, before the government said it would end in April 2023.
Chancellor Jeremy Hunt then said the guarantee would continue, increasing by £500 to £3,000 from April.
Without government support, the average energy bill would have risen to £4,279 in January 2023, regulator Ofgem said.
Previously, Ofgem set the maximum suppliers could charge households per unit of energy.
But after prices soared in the wake of Russia’s invasion of Ukraine, the government announced its price guarantee would replace this energy cap.
Read More: https://www.bbc.com/news/business-58090533