Autumn Statement 2022: Energy Price Guarantee Extended For Another Year – But Set To Increase Bills By £500

From April next year, the average household will pay £3,000 for their annual energy bills.
Chancellor of the Exchequer Jeremy Hunt delivering his autumn statement to MPs in the House of Commons, London.
Chancellor of the Exchequer Jeremy Hunt delivering his autumn statement to MPs in the House of Commons, London.
House of Commons - PA Images via Getty Images

Jeremy Hunt has just unveiled a rejigged Energy Price Guarantee, extending it to last until April 2024.

But, the chancellor did confirm that the average household will pay £3,000 for their annual energy bills from April 2023, as opposed to the current £2,500 frozen rate.

It came as the government looks to fix the damage left by the unfunded tax cuts unveiled by former prime minister Liz Truss in her mini-budget.

“One of the biggest worries for families is energy bills,” Hunt said when announcing his autumn statement on Thursday.

He also credited former chancellor Kwasi Kwarteng and Truss for establishing the Energy Price Guarantee earlier this autumn during their exceptional short period in office together.

Hunt said: “This winter we will stick with the plan to spend £55 billion to help households and businesses with their energy bills – one of the largest support plans in Europe.”

Experts believe that without support from Downing Street, bills could have reached £3,700 by now.

Energy bill costs have been a major concern throughout the cost of living crisis, as inflation reaches a 41-year-high of 11.1%. It partially stems from Russia’s war in Ukraine, as the West tries to wean itself off Moscow’s energy supplies.

Jeremy Hunt says the government will continue the Energy Price Guarantee for a further 12 months at a higher level of £3,000 per year for the average household.

The chancellor "pays tribute" to his predecessors for "their leadership" on the energy plan.https://t.co/jUh3qMgZ1n pic.twitter.com/1wa4gnn27p

— Sky News (@SkyNews) November 17, 2022

Hunt also announced an increased windfall tax on energy firms, following energy giants reporting record-high profits this year.

He increased tax on oil and gas giants from 25% to 35%, and expanded the levy to electricity generators too.

It came as the Office for Budget Responsibility (OBR) said the UK is already in recession – and set to shrink by 1.4% next year.

This is a breaking news story and will be updated. Follow HuffPost UK on Twitter, Facebook and Instagram.

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