Chancellor Jeremy Hunt has confirmed that government support for energy bills will be targeted at the most vulnerable after April, in a move expected to cost millions of households hundreds of pounds.
Speaking days ahead of his crucial Autumn Statement, Mr Hunt confirmed he expects the UK to plunge into recession and said his goal was to make it “as short and shallow as possible” by bearing down on inflation.
The chancellor confirmed that Thursday’s statement will include both tax rises and spending cuts to deal with the additional cost of energy, which he said was the equivalent of funding a second NHS each year.
And he said it will also feature “a long-term plan for clean energy, green energy and cheap energy” to ensure that the UK is never again at the mercy of international events like Russia’s war in Ukraine.
Speaking to Sky News’s Sunday with Sophy Ridge, Mr Hunt signalled that the government’s energy support plan – holding all households’ gas and electricity bills to an annual average of £2,500 for the six months to April at a cost of £60bn – is to be slashed back once the winter is over.
The statement will set out plans for “short-term support for people who need it, but also a long-term plan to really change our approach to energy”, he said.
Documents submitted to the Office for Budget Responsibility indicate that Mr Hunt intends to extend the scheme for a further six months at a considerably reduced cost of £20bn, according to The Sunday Times.
This could see the guarantee rising as high as £3,100, costing the average household an additional £600.
