Spring Budget 2023 - Energy Price Guarantee
The Chancellor had previously announced that the energy price guarantee cap, which will see the average household have their energy bills capped at £2,500 a year, would remain in place until the 31 March 2023. It was announced as part of the Spring Budget measures that this cap will now be extended for a further 3-months until 30 June 2023.
From 1 July 2023 (rather than 1 April 2023 as previously announced), this guarantee will change so that the typical household will pay on average £3,000 a year (an increase of £500). The government will also adjust the energy price guarantee scheme from 1 July 2023 to bring charges for comparable direct debit and Prepayment meter (PPM) customers into line until April 2024 when the scheme is set to end. This measure will help over four million households on prepayment meters.
No changes were announced to the previously announced business Energy Bills Discount Scheme that will replace the current Energy Bill Relief Scheme from 31 March 2023. The new scheme will offer support to eligible non-domestic energy customers, including UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals from 1 April 2023 - 31 March 2024. A substantially higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive – predominately manufacturing industries.