Energy price rises of up to 50% announced for millions today - but £200 discounts could be offered
03.02.2022 - 10:55
/ manchestereveningnews.co.uk
Millions of households will feel the cost of living crisis intensify today as an announcement is made on the soaring energy price cap.
Regulator Ofgem will unveil the new price cap today, which will come into force from April 1.
The cap will rise by 50 per cent because of soaring wholesale gas prices and the cost of dozens of suppliers that have gone bust, meaning the average bill could hit £1,915.
The average home now pays around £1,277.
The Bank of England is also expected to raise interest rates today, from 0.25 per cent to 0.5 per cent.
READ MORE: Cost of living calculator: Find out how much more you'll pay on bills and tax from April
Amid the price rises, Chancellor Rishi Sunak is expected to announce support for some households to ease the pressure, though this reportedly will depend on council tax bands.
According to the Times, Mr Sunak will commit to giving households in council tax bands A to C rebates funded by government grants under targeted measures for poorer households.
The Treasury did not rule out the move nor did it deny that the Chancellor could announce state-backed loans to give all homes a discount on their energy bills of £200.
Expert analysis suggests Ofgem’s review of the price cap, which will affect around 22 million households, will see bills soar by at least half.
The rise will come into force from April 1, when the price cap on energy bills is updated for the next six months.
The energy regulator’s announcement had been scheduled for Monday but officials, without stating why, decided to move it to 11am on Thursday.
Asked about the new support package, a Government spokeswoman said: “We recognise people are facing pressures with the cost of living, which is why we are providing support worth