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Millions brace for energy bill blow as government in talks over raising energy price cap in new year

MILLIONS of households could be hit with energy bill hikes in April next year as the government discusses raising the price cap.

Energy bills are currently frozen at £2,500 for the typical household under the energy price guarantee.

Millions could see their energy bills soar in April next year

The guarantee, which replaced the price cap when it rolled out from October 1, was initially supposed to be in place for the next two years.

But after the fallout of the mini-Budget and concerns over rising government debt, Chancellor Jeremy Hunt said the guarantee will only last until April next year.

Millions have been left in the lurch wondering what will happen to bills when the guarantee ends next year.

But the government is discussing the price cap back in place from April – which could be set at a higher level than £2,500 as part of the measures announced in the upcoming Budget.

Insiders say an energy price cap rise is more than likely to go ahead, because bills are continuing on an upwards trajectory because of the energy crisis.

It means that millions will more than likely see their energy bills rise to more than £2,500 on average.

Targeted support will likely be given to those who need it most.

It’s not the only measure that could be unveiled in the Budget.

Mr Hunt is considering extending a freeze on income tax thresholds until 2028 – dragging millions more into a higher rate of tax.

Millions of Brits could be hit with higher council tax bills as the government mulls over whether to let local authorities hike the levy.

What is the energy price cap? 

The price cap on energy bills was introduced in January 2019 as a way to ensure that households that are not bills-savvy are not ripped off by their energy suppliers.

It applies to customers on standard variable tariffs and default tariffs.

Some customers think that the price cap is the absolute maximum that you can be charged on their bill – regardless of their energy usage.

But that is not the case. This is simply a representation of the average household’s bill, not a fixed upper limit.

It sees the government limit the price suppliers can charge customers for units of gas and electricity.

That means bill can still be higher or lower, depending on how much energy you use and the size of your home.

An increasing number of energy users are on the price cap as there are limited fixed deals left out there on the market.

The price cap soared to eye-watering heights this year due to the energy crisis.

What help is already available?

Over six million people with disabilities are now receiving £150 to help with the rising cost of living.

From October 1, all UK households began receiving the £400 energy bills rebate.

The payment will be made up of six discounts between October and March next year.

Households will receive a £66 energy bill discount between this month and November and a discount worth £67 in December, January, February and March.

We’ve listed how the leading energy suppliers plan to pay households the discount and are waiting on others to respond.

The way you’ll be paid will depend on how you pay for your energy.

If you’re on a credit meter the discount will come off your bills, but if you’re on a prepayment meter you’ll get a voucher.

Check with your supplier to confirm how you’ll receive the cash.

From tomorrow, a £300 one-off “pensioner cost of living payment” will be paid out to eight million households.

It will be given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over the state pension age.

Millions of households are in line to get the £150 Warm Home Discount between December and March 2023.

There are plenty of energy grants and schemes open to help you out if you’re struggling.

British Gas has recently confirmed that it’ll pay its most vulnerable customers grants worth £750 to help with sky-high bills.

The British Gas Energy Trust has previously paid struggling households up to £1,500 – and you don’t need to be a British Gas customer to apply for this help.

Ask your supplier what’s on offer and how to apply, or check here:



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