Reported by The Guardian
Chancellor’s ‘new course’ includes a £100 one-off payment, low-carbon upgrade loans and an end to standing charges
John Healey has unveiled a package of support for households being buffeted by “global economic storms”.
“I’m setting a new course to get energy costs down in line with Europe,” the chancellor said in his maiden budget. In the long term, he hopes that changes in how Britain covers the cost of renewables and grid upgrades will “drive down all aspects of energy bills”.
More from the original report
British households face some of the highest energy charges for three years, with the war in the Middle East driving up oil and gas prices.
Under the government’s price cap, average dual-fuel bills are £1,700 a year and could rise to more than £2,100 a year from January, according to industry forecasts .
So what has the chancellor offered hard-pressed households to help them through the coldest months of the year? And will it be enough to lower gas and electricity bills?
The government’s biggest bet on offering “breathing space” to struggling households this winter is a one-off payment of £100 in January for 20m households in council tax bands A to D. It is also the measure most likely to deliver real benefit for those in need.
The £2.6bn “household energy payment” will go directly into bank accounts to “take the pressure off in the coldest months and see people through to the spring”, according to Healey.
Martin Lewis, the founder of MoneySavingExpert.com, said households could face a 25% cost increase from January and shouldn’t expect to feel better off than they do today.
Officials are anxious to avoid handing public money to those who can get by without it but they lack household income data to target proposed support. Using council tax bands is “the least worst proxy”, Lewis said.
The payment will be in addition to the Warm Home Discount, which offers about 6m means-tested households in England, Wales and Scotland £150 off winter fuel bills.
This measure will offer a modest saving for most British households – but not all, and perhaps not until next…