Cost of living: the discount on the energy bill must increase Which one? warns
The government must offer £1,000 in cuts on energy bills or risk plunging millions into financial distress this winter, which one? has warned.
The watchdog said government financial support for all households is to be increased from the current £400 to £1,000 – or £67 to £167 per month from October to March – following forecast price caps from energy.
The existing support package is insufficient to protect the standard of living of those on the lowest incomes and would lead to considerable financial and social hardship, he said.
When the government first announced its financial support package in May, the energy price cap was expected to reach around £2,800 in October.
Households will get a £400 cut on their energy bills from October – for the most part the cut is automatic.
If your friends or family use a traditional prepaid meter, they will need to redeem vouchers.
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— Department for BEIS (@beisgovuk) August 19, 2022
Analysts at Cornwall Insight are now predicting average energy bills will rise to £3,554 in October and hit £4,650 in January.
But which one? warned that even a 150 per cent increase in aid would be insufficient for the lowest income families, and said the government must also provide them with an additional one-time minimum payment of £150 to ensure the most vulnerable receive the support they need.
And he said the additional support would only be a temporary fix until March, when energy prices are expected to reach £5,341 for April and remain high through 2023.
Who? calls on the Government and Ofgem to undertake an immediate review of retail energy prices – including price caps – and rapidly improve home insulation to cut costs, reduce reliance on gas and support the transition to net zero.
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Households will get £400 off their energy bills in six installments from October.
You do not need to apply for the Energy Bills Support Scheme and you will never be asked for your bank details.
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— Department for BEIS (@beisgovuk) August 24, 2022
Rocio Concha, which one? The Director of Policy and Advocacy said: “With energy bill forecasts continuing to soar, the government must increase the energy bill support program by at least 150%, or risk plunging millions of households into financial hardship this winter.
“While increased support will bring relief to many, it is not a long-term solution. The government and regulator must urgently undertake a thorough review of retail energy pricing – including the price caps – to create a fair and affordable system for consumers.
“The government must also develop a program to urgently improve the insulation of homes – as this will help reduce people’s energy costs for years to come.”
A spokesperson for the Department for Business, Energy and Industrial Strategy said: ‘We know the pressures people are facing with rising costs, which is why we are taking direct action to help households with support of £37 billion.
“As well as providing eight million of the most vulnerable households with an additional £1,200 of support this winter, we are also investing £6.6 billion in this parliament to improve energy efficiency under the government’s ‘Help’ scheme. to Heat” which helps make households across the country cheaper to heat.