The energy regulator Ofgem announced a £693 rise in its price cap, taking it to £1,971 from April.
Globally, there has been a four-fold increase in the wholesale price of gas. Currently, a £700-a-year rise in the average household’s energy bills is forecasted this year.
Chancellor Rishi Sunak has made the announcement in the House of Commons on energy rebate, and now further details have been published, which explains households in England, which are in council tax bands A, B, C or D, will get the £150 rebate.
The rebate to bills will be made directly by local authorities from April. This one-off payment will benefit around 80 per cent of all homes in England and is £1billion more generous and more targeted towards lower-income families than a VAT cut on energy bills.
In addition to this discount, discretionary funding of £144 million will also be provided to support
vulnerable people and individuals on low incomes that do not pay council tax, or that pay council tax for properties in Bands E-H.
The energy bills rebate will provide around 28 million households with an upfront discount on their bills worth £200. Energy suppliers will apply the discount to domestic electricity with the government meeting the costs. It also comes as welcome news that the government will go ahead with existing proposals to expand eligibility for the Warm Home Discount. This will increase the number of people eligible for the payment by one third, which is around 780,000 families.
