Today OFGEM announced that the energy price cap would be increasing by an eye-watering 54% in April 2022, taking the average household energy bill from £1,277/year to £1,971/year (or from £1,309/year to £2,017/year for prepayment meter users). To help lessen the impact of this unprecedented rise, the UK Government also announced a suite of financial measures:
- £200 "discount" on bills per household (which is actually a loan to be paid back over 5 years)
- £150 Council Tax rebate for bands A-D
- A £150m fund for local authorities to provide further assistance
- An increase in the number of households eligible for the Warm Home Discount
- Increase the discount for low-income families and individuals, and do not make them pay it back later
- Give better-off people the option to refuse the discount, leaving more money for others
- From now on, increase the Warm Home Discount in line with price cap increases, rather than keeping it frozen at £140
- Commit to a mass rollout of insulation measures for people on low incomes in addition to the existing ECO and Green Homes Grant schemes, and with more lenient EPC eligibility criteria
- Encourage energy companies to write off debt for customers in financial hardship