Chancellor Jeremy Hunt has announced that he will be withdrawing the universal energy price guarantee in April.
The energy price guarantee, which stipulated that the average UK household would spend no more than £2,500 year on energy, was initially introduced by Prime Minister Liz Truss as a two-year programme.
However, Mr. Hunt stated that assistance with energy expenses will only be provided to all homes through April.
The Chancellor said a review would take place to look at a “new approach” to target support at those worst off after that.
In an urgent statement this morning, Mr. Hunt outlined his financial strategy for the future.
According to estimates, the move to lower the basic rate of income tax from 20% to 19% in April of next year would have cost the Exchequer around £5.3 billion in 2023–2024, however the Chancellor indicated that the Government will abandon those plans.
He added that the Government would abandon its intentions to introduce additional VAT-free shopping for visitors from abroad.
It happens just a few days after Liz Truss said that she had changed her mind about trying to avert a proposed increase in Corporation Tax.
While it seemed expected that the plan would be abandoned, according to government sources, a 25% increase in company tax was not anticipated.
But Ms. Truss stated at her conference that "the way we are achieving our objective right now has to alter" because some aspects of her mini-budget "went further and faster than markets were expecting."
Cost of living support for energy bills
People might get assistance from the government to pay their energy expenses.
Beginning in October, households will start receiving a discount on their energy bills, which will be paid in six instalments.
Energy prices will be discounted by £66 in October and November, and then by £67 every month from December through March 2023.
Comments