The government has announced it will keep its cap on energy prices for a further three months as part of Jeremy Hunt’s first full budget.
The Energy Price Guarantee (EPG) – which limits the unit cost of gas and electricity that people pay – had been expected to rise to £3,000 next month, meaning another hike in household bills.
But just hours before the chancellor was due to deliver his statement to Parliament, the Treasury confirmed the figure would now remain at £2,500 until June, claiming the typical home would save £160 on energy bills as a result.
Prime Minister Rishi Sunak said the decision, which will cost £3bn, would “give people some peace of mind”.
And Mr Hunt added: “With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
Read more:
What to look out for in Hunt’s first budget
