Jeremy Hunt to water down energy support as price guarantee set to end in April

Chancellor Jeremy Hunt has announced he will withdraw the Universal Energy Price Guarantee in April.

The Energy Price Guarantee, which meant a typical UK household would pay no more than £2,500 a year for energy, was originally announced as a two-year scheme by Prime Minister Liz Truss.

However, Mr Hunt announced that help with energy bills for all households will only last until April.

The Chancellor said a review would take place to look at a “new approach” to targeting support for those worst off going forward.

Energy price guarantee for every UK household will end in April, Jeremy Hunt has announcedPennsylvania

Mr Hunt outlined his financial plan for the future in an emergency statement this morning.

The Chancellor has announced the government will abandon plans to cut the basic rate of income tax from 20% to 19% in April next year, a move which had been expected to cost the Treasury nearly £5 £.3 billion in 2023-24.

He also confirmed that the government would drop plans for new VAT-free purchases for international tourists.

It comes days after Liz Truss announced another financial U-turn as she reversed her plans to halt a planned corporate tax hike.

Government sources had predicted that while scrapping the plan was likely, they did not see corporation tax reaching the previously suggested 25%.

However, during her lecture, Ms Truss said: ‘It is clear that parts of our mini-budget have gone further and faster than the markets had anticipated, so the way we are fulfilling our mission in this time must change.”

Cost of living assistance for energy bills

Government support is available to help people pay their energy bills.

Households will start receiving money on their energy bills from October, with the reduction being made in six installments.

A reduction of £66 will be applied to energy bills in October and November, rising to £67 each month from December to March 2023.

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