Budget 2023: £2,500 Energy Price Guarantee to be extended to end of June
The Chancellor of the Exchequer, Jeremy Hunt, will make the official announcement in the House of Commons on Wednesday afternoon.
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A government scheme set-up to limit how much households all over the UK pay for energy has been extended for three months, according to reports.
The Energy Price Guarantee (EPG), which limits typical household payments to £2,500, was due to end at the end of March but will now run until June. The guarantee was due to rise to £3,000 meaning energy bills for millions of households were set to rise.
The move should protect customers until the end of June when prices are expected to drop to £2,100. The Chancellor Jeremy Hunt says the extension of the EPG "will bridge the gap and ease the pressure on families, while also helping to lower inflation" and explained the reason he is taking the decision to extend the scheme is because energy bills are "one of the biggest worries for families".
Prime Minister Rishi Sunak said extending the EPG was part of his government’s commitment to cut inflation by 50% before the end of 2023.
“We know people are worried about their bills rising in April, so, to give people some peace of mind, we’re keeping the energy price guarantee at its current level until the summer, when gas prices are expected to fall. Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.”
The announcement comes on the day Chancellor Jeremy Hunt will announce his Spring Budget for the year ahead. Further details and announcements will be confirmed by the Chancellor in the House of Commons on Wednesday afternoon.