Spring Funds 2023: vitality invoice assist prolonged

Chancellor Jeremy Hunt has introduced within the Spring Funds that the present degree of presidency funding to assist shield individuals from increased vitality payments will probably be prolonged for 3 months.

The Vitality Value Assure (EPG) is a brief measure that caps vitality payments for typical households at round £2,500 a 12 months.

Earlier than the EPG was launched in October 2022, there was already a measure in place to restrict vitality payments referred to as the Vitality Value Cap. Below this measure, the common annual fuel and electrical energy invoice would have been £4,279.

The federal government’s Vitality Value Assure funding was because of be lowered from this April, by £500, so common vitality payments had been set to rise to £3,000 yearly. However the three-month extension means the rise gained’t come into impact till July, when it’s anticipated that decrease wholesale fuel costs will result in lowered vitality payments.

At the moment the Vitality Value Assure is ready to exchange the Vitality Value Cap till April 2024.

Is the Vitality Value Assure the utmost quantity you’ll pay for vitality payments? 

You’ll all the time pay for the vitality you employ, no matter what the cap is ready at. You would possibly pay much less, however you possibly can additionally pay greater than the cap of £2,500 a 12 months, as a result of it refers to a ‘typical’ family with ‘common’ vitality use.

What you pay beneath the Vitality Value Assure will probably be decided by how a lot vitality you employ, the kind of tariff you’re on, and the way you pay your invoice.

And costs range from area to area throughout the UK, in accordance with charges set by Ofgem, as a result of transport prices to ship fuel and electrical energy are taken under consideration.

Learn extra in regards to the Vitality Value Assure (EPG) and the way it works.

The header picture for this text is offered courtesy of West Coast Properties, Portishead