In the Autumn Statement, Chancellor Jeremy Hunt has pledged a further £6bn to improve household’s energy-efficiency
From April 2023, the energy price guarantee (EPG) will rise to £3,000 a year for the typical household, up from £2,500 and will be extended for 12 months. Hunt also announced an energy efficiency taskforce (EETF), which will aim to reduce the UK’s energy consumption from business and industry by 15% by 2030. The chancellor said that £6.6bn would be spent during this parliament on energy efficiency and announced a further £6bn of funding from 2025, doubling annual investment. With prices forecast to remain high, the changes to EPG will mean that households receive an average of £500 in support between 2023-24, saving £14bn of government spending in 2023-24. Hunt told MPs: ‘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 EPG was introduced to support people from unprecedented rises in energy prices by fixing the cost of energy bills to £2,500 for a typical household, saving on average £900 this winter. The new task force (EETF) will aim to reduce the UK’s final energy consumption from buildings and industry by 15% by 2030 against 2021 levels. In total, this will save £28bn from the UK’s national energy bill or £450 for the average household. Hunt also announced further support for the most vulnerable households, with further cost of living payments of £900 provided to households on means-tested benefits. This includes an additional £300 to pensioner households and £150 to people on disability benefits including Personal Independence Payment. The Department for Work and Pensions (DWP) and HMRC are set to provide further details soon. The government will also double the level of support for households that use alternative fuels, such as heating oil, LPG, coal or biomass, to heat their homes with a £200 support package, which will be delivered as soon as possible this winter. In addition, the household support fund, which was first introduced last October, will receive an additional £1bn in funding. The social housing rent cap will also stand at 7%.
