The Government have pledged help towards energy bills as energy costs rise.
Millions of households will receive £350 of Government support, this comes as the energy price cap rises by 50% from 1st April 2022. The Bank of England interest rate has also raised to 0.5% with immediate effect.
All domestic electricity customers will get £200 off their energy bills from October. 80% of households will also receive a £150 council tax rebate (property band A-D) from April.
The council tax element will not have to be repaid. However it will only apply to main residencies, not second properties or holiday homes.
Energy suppliers will apply the discount to domestic electricity customer from October, with the Government meeting the costs. The discount will then be automatically recovered from energy bills in equal £40 instalments over the next five years.
Borrowing is set to fall from £320bn to £46bn by the end of this parliment. For all the progress we are making the job is not yet done.
We will help people deal with some of the biggest costs they face – energy. The Government is going to step in to help people manage the extra costs.Rishi Sunak, The Chancellor
Calls for the removal of VAT on energy bills have been rejected as this would benefit all users not just domestic.
There are existing plans to expand eligibility for Warm Home Discounts by almost a third which will mean that three million vulnerable households will benefit.