Ofgem has recently advised a further increase in the October price cap taking the average household energy bill to approximately £2,800*. This will have further impact on the cost of living, and the Government will provide further support to energy consumers.
*Average household estimated cost is based on a duel fuel customer paying by direct debit and using 12,000 kWh of gas and 2,900 kWh of electricity.
On 26th May 2022, the government announced an updated package of support. This is an improvement on the scheme originally announced in February and is intended to help domestic energy customers of all suppliers with the costs of rising electricity bills.
These are the main points of the package of new measures, worth an estimated £15 billion:
- All UK households will receive a £400 discount on their electricity bills in Autumn 2022 (this replaces the original discount announced in February and will be a grant, rather than a loan)
- Eight million of the lowest income families in the UK will also receive a one-off payment of £650 provided in two lump sums, one in July and in Autumn
- People with disabilities will also receive a one-off payment of £150
- Those who get by on a pension will also receive a one-off payment of £300