Following a series of political readjustments from the new Chancellor, the Energy Price Guarantee has changed.
Initially, former Chancellor Kwasi Kwarteng announced in a mini-Budget that energy bills would be frozen at £2,500 for two years and would be applicable to every household in the country. However, following his departure and the appointment of Jeremy Hunt as his replacement, the scheme has taken a drastically different direction.
Instead of lasting for two years for every household, Mr Hunt announced that this will be rolled back and will only be in place until April 2023. The change comes as the Chancellor desperately tries to reel in the markets and stabilise the economy following a financially disastrous mini-Budget.
On Monday, the Chancellor said: "I’m announcing today a Treasury-led review into how we support energy bills beyond April next year. The objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.”
He added: "Any support for businesses will be targeted to those most affected, and the new approach will better incentivise energy efficiency.”
Because of the deadline change, previous public expectations may have to be adjusted, including how their finances may change after the winter period is over. Here's everything we know about the altered Energy Price Guarantee Scheme.
When it starts and ends
The Energy Price Guarantee scheme already came into effect at the beginning of October. The new scheme reduces the unit cost of electricity and gas, with the typical household paying around £2,500 on average.
However, you may end up paying more or less than £2,500 on your bills depending on your use.
Who is eligible
Every household in the UK is eligible for the Energy Price Guarantee automatically so there is no need to apply or contact your energy supplier. However, this is only true until the end of April 2023.
After this, the government will focus all of its support on those "most affected" - although it is not yet clear what groups the Chancellor is referring to.
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