Government extends energy support for households

The UK government has extended the energy price guarantee (EPG) at its current rate until the end of June.

The EPG caps the unit cost of energy, limiting an average annual household electricity and gas bill to £2,500. This was set to rise to £3,000 at the end of next month.

The Treasury’s widely predicted U-turn was announced just hours before the chancellor, Jeremy Hunt, was due to deliver his budget to Parliament. Over the past month or so, the government had come under significant pressure from campaign groups and charities to extend the support scheme or risk pushing more people into fuel poverty.

Explaining the decision, Mr Hunt 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.”

The budget is expected to include additional support for households and businesses, including extra funding for free childcare programmes, the creation of twelve investment zones, and an increase to the tax-free lifetime allowance (LTA) on pension savings.

If you run a small or medium-sized business in Greater Manchester and want to understand how the budget might impact your operations and revenues, GC Business Growth Hub’s #HereForBusiness package provides practical guidance and expert advice on a range of topics to help you manage the increasing cost of doing business.

If you have any questions, get in touch now.