Millions to receive financial support in response to energy price cap lift

Millions of homeowners will receive up to £350 of financial support to protect them against rising energy costs, it has been announced.

The measures come after the energy regulator, Ofgem, confirmed that the energy price cap will be lifted in April as a result of the “soaring global wholesale price of gas”.

The Energy Bills Rebate scheme will provide around 28 million domestic electricity customers with a repayable discount on their energy bills worth £200 from October this year.

However, it will be automatically recovered from bill payers in equal £40 instalments over the next five years – effectively acting as a zero-interest loan.

Households in council tax bands A to D, meanwhile, will receive a £150 rebate to support them with the rising cost of living. This includes people in receipt of the Single Person Discount and those whose council tax bills are less than £150.

The targeted relief – which does not need to be repaid – will benefit around 80 per cent of households in England.

A £144 million discretionary funding scheme will also be launched to support those not eligible for support, such as households that pay council tax for properties in bands E to H.

The latest statistics suggest that annual energy bills could increase by as much as £700 for the average household from 01 April 2022.

Commenting on the package of measures, Chancellor of the Exchequer Rishi Sunak said:Right now, I know the number one issue on people’s minds is the rising cost of living.

“That’s why the Government is stepping in with direct support that will help around 28 million households with their rising energy costs over the next year.”

Click here to learn more about the Energy Bills Rebate.

For help and advice with related matters, please get in touch with our team today.

Posted in Funding, News.