Chancellor of the Exchequer Jeremy Hunt has today confirmed that energy bills will typically rise to £3,000 as of next April - surging from the current cap of £2,500.
And while the rise will come as a shock to many, it is a substantial step down from the £3,739 that energy analysts at Cornwall Insight predicted.
But bills will still rise to new highs when compared to the Ofgem price cap this time last year, which sat at £1,277.
Read more: Jeremy Hunt's Autumn Statement at a glance as he announces tax rises
Mr Hunt confirmed during his autumn Budget today that the Energy Price Cap Guarantee will also be extended further than April 2023, announcing that an average of £500 in support will be available for each and every UK household.
He said: "From April, we will continue the Energy Price Guarantee for a further 12 months at a higher level of £3,000 per year for the average household. With prices forecast to remain elevated through next year, this will still mean an average of £500 support for every household."
The Chancellor also outlined further support to those who need it most - with more cost of living payments set for the future with a worth of up to £1,350. This is of course inclusive of £900 to certain individuals on means-tested benefits like Universal Credit, Tax Credits and Pension Credit.
A further £150 will go to those in receipt of disability allowance such as PIP - while £300 extra is expected to hit pensioners who receive Winter Fuel Payments. The news came after Chancellor Hunt confirmed that the Energy Price Promise would be stripped back last month - instead of running consecutively for two years.
The Government-funded help posing a £2,500 limit should have lasted until October 2024 - but Hunt admitted that it would cease to remain as is from April onwards. Today marks the first instance that he has issued clarity on how the energy crisis will be handled after the six month period comes to a close.
The new £3,000 Energy Price Guarantee is set to last for a 12-month period - ceasing in April 2024.
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