THE GOVERNMENT says it is making ‘appropriate preparations’ to help tackle the near doubling of the energy price cap, but it will only implement any schemes when a new prime minister is appointed.
This morning, regulator Ofgem announced that the energy price cap will increase to £3,549 per year for dual fuel for an average household from October 1.
This is the second rise in a year. At the start of 2022, the cap was set at £1,277 and rose £693 to £1,971 in April.
This means that prices will have almost trebled in the space of six months.
Ofgem’s CEO has warned that the price rise will cause many households hardship this winter and is urging the incoming Prime Minister, be it Rishi Sunak or Liz Truss, and their new cabinet to provide an additional and urgent response to continued surging energy prices.
A Government spokesperson said this morning that it knows people are “incredibly worried” about the rising prices, which it says its driven by global events, including Putin’s attempted invasion of Ukraine.
They said that direct support had already been taken, with an emphasis on helping low-income households, pensioners and those with disabilities. It includes a £400 rebate on energy bills, paid in six instalments.
Pensioner households will receive an additional £300 this winter via the pensioner cost of living payment, and for all disability benefit claimants a one-off £150 disability cost of living payment will be made from September.
Eligible households will receive the second instalment of the £650 cost of living payment for those on means-tested benefits over the autumn/winter. This will be worth £324 and will be in addition to the £326 paid since July.
The government says its support includes a 5p cut on fuel duty paid on petrol and diesel, a £150 discount through council tax for eligible households, and changes to the universal credit taper rate.
“As part of our £37 billion package of help for households, one in four of all UK households will see £1,200 extra support, provided in instalments across the year, and everyone will receive a £400 discount on their energy bills over winter,” they said.
And they indicated that more help could be on the way, but did not go into any specific details.
“The civil service is also making the appropriate preparations in order to ensure that any additional support or commitments on cost of living can be delivered as quickly as possible when the new Prime Minister is in place,” they said.
