Spring Finances 2023: vitality invoice help prolonged

Chancellor Jeremy Hunt has introduced within the Spring Finances that the present degree of presidency funding to assist defend folks from greater vitality payments can be prolonged for 3 months.

The Vitality Worth Assure (EPG) is a brief measure that caps vitality payments for typical households at round £2,500 a 12 months.

Earlier than the EPG was launched in October 2022, there was already a measure in place to restrict vitality payments referred to as the Vitality Worth Cap. Beneath this measure, the common annual gasoline and electrical energy invoice would have been £4,279.

The federal government’s Vitality Worth Assure funding was on account of be lowered from this April, by £500, so common vitality payments had been set to rise to £3,000 yearly. However the three-month extension means the rise gained’t come into impact till July, when it’s anticipated that decrease wholesale gasoline costs will result in lowered vitality payments.

At the moment the Vitality Worth Assure is ready to switch the Vitality Worth Cap till April 2024.

Is the Vitality Worth Assure the utmost quantity you’ll pay for vitality payments? 

You’ll all the time pay for the vitality you employ, no matter what the cap is ready at. You may pay much less, however you can additionally pay greater than the cap of £2,500 a 12 months, as a result of it refers to a ‘typical’ family with ‘common’ vitality use.

What you pay underneath the Vitality Worth Assure can be decided by how a lot vitality you employ, the kind of tariff you’re on, and the way you pay your invoice.

And costs range from area to area throughout the UK, in line with charges set by Ofgem, as a result of transport prices to ship gasoline and electrical energy are taken into consideration.

Learn extra concerning the Vitality Worth Assure (EPG) and the way it works.

The header picture for this text is offered courtesy of West Coast Properties, Portishead