This morning, 3rd February 2022, Ofgem announced that the energy price cap level will rise by 54% from 1st April. This represents an average bill increase of £693 a year for households in England, Wales and Scotland. Taking the average bill to £1,971 a year. Pre-payment customers will see an average increase of £708 taking their annual bill to £2,017 on average.
As a result of this, the Chancellor immediately announced a number of measures to provide some mitigation to householders facing these huge price rises. These include;
- All domestic electricity customers will receive a £200 discount on their bills from October. (Please note that this is just a loan, and will be recouped over 5 years.)
- The Warm Home Discount eligibility will be extended to reach 3 million vulnerable households next winter.
- £150 rebate on council tax bills in England for householders in council tax bands A to D – representing 80% of council tax payers.
- £150m for local authorities in England to help lower income households.