The amount people pay for their energy will increase in April when the Government's price guarantee rises by 20 per cent. With bills already significantly higher than they have been in recent years, many are worrying about their finances - although there is support available for some households.
Currently, the Government caps the amount you pay per unit of energy, meaning that a typical household will pay £2,500 a year. This is not an overall cap on your bill - it is per unit of energy - so if you use more than average, you will pay more than £2,500.
The policy, called the Energy Price Guarantee, was introduced because the cap set by energy regulator Ofgem would have been unaffordable for many people. Ofgem's Energy Price Cap is currently £4,279.
READ MORE: Martin Lewis issues stark warning to everyone with broadband
In April, Ofgem's Price Cap will rise once more, but Government support will continue, offering some protection for households. The Energy Price Guarantee will increase by around 20 per cent on April 1, 2023, capping bills at £3,000 a year, rather than £2,500. It is due to remain at this level until March 2024.
The £400 discount on energy bills given to every UK household will also end. This policy has meant that everyone in the UK has had either £66 or £67 taken off their energy bill monthly across this winter.
That won't be in place next winter, meaning the increase in the Energy Price Guarantee will feel even bigger. According to Money Saving Expert Martin Lewis, once the £400 discount is factored in, the typical rise in April will actually be 43 per cent.
Chancellor of the Exchequer, Jeremy Hunt, says he is trying to balance protecting families and businesses with managing the economy. He said: "My top priority is tackling the rising cost of living, that means taking difficult decisions to bring down inflation while giving as much support to families and business as we are able."
Despite the Government intervention, gas and electricity bills are still far higher than they have been in the past. Just two years ago, a typical household bill was £1,042.
There will be more support for certain households in 2023 to help people cope with the cost of living crisis. The Government has announced measures to support people on low incomes, pensioners, and those with disabilities.
A £900 cost of living payment will be made to people on certain means-tested benefits this year, similar to the £650 payment in 2022. It is expected to be made in three instalments, in spring, autumn, and then in the following spring of 2024.
There will also be a £300 payment for pensioner households in the winter and £150 will be paid to people on certain disability benefits, due in the summer. More information on the cost of living support planned for 2023 can be found here.
People who are struggling to pay their energy bills are being encouraged to contact their supplier, as there may be support available through the company. Citizens Advice also has information on what people can do if they are struggling to afford gas and electricity.
READ NEXT:
Nottinghamshire pubs' 'mixed' outlook for 2023 after hundreds of closures
Nottinghamshire residents warned over scam after victims lose £20k
Martin Lewis explains 'clever' cost of living payment differences
Roadworks and road closures in place at present across Notts
Anger over 'disgraceful scandal' as Nottingham's Debenhams falling into disrepair
