Government must increase bill discount to £1k stop pushing millions of people into financial uncertainty, watchdog says
25.08.2022 - 10:53
/ manchestereveningnews.co.uk
A consumer watchdog has warned that if the government doesn't increase the energy bill discount it could risk pushing millions of households into financial uncertainty.
Which? claimed that the government's financial package must increase from the current £400 to £1,000 - or from £67 to £167 per month - from October to March due to predictions that energy costs will soon skyrocket. It adds that the current financial support is not enough to protect living standards for households with the lowest incomes.
Initially, when the government introduced its financial package in May, the energy price cap was predicted to reach around £2,800 in October. However, analysts such as Cornwall Insight predict the average annual energy bill could shoot to £3,554 in October and further increase to £4,650 in January.
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Despite calls to increase the discount, Which? noted that even a 150 per cent increase would be insufficient to help families on the lowest incomes. It added that the government must also provide a one-payment of £150.
It also pointed out that additional support from the government is only a temporary solution until March when energy prices are predicted to soar to £5,341 and remain significantly high throughout 2023. Now, Which? is calling on the government and energy regulator Ofgem to undertake an immediate review of retail energy pricing, including the price cap.
Rocio Concha, Which? director of policy and advocacy, said: “With energy bill predictions continuing to spiral, the Government must increase the Energy Bills Support Scheme by at least 150%, or risk pushing millions of households into financial distress this winter. While increased support will provide