Government Unveils £100 Energy Bill Discount for Millions
Chancellor John Healey presents Budget with winter energy relief and long-term low-carbon initiatives.
Sarah Connor
Millions of households will receive a £100 discount on energy bills this winter.
Households can verify their eligibility using the government's postcode checker. The government claims this policy will cover 80 percent of fuel-stressed households and 88 percent in the bottom three income deciles.
This new discount emerges as Ofgem's price cap is predicted to increase by at least 26% in January, potentially rising to £2,172 a year for a typical dual-fuel household. Maxine Whitter stated the £100 payment "is going to be eaten up in one month anyway."
Lee Smith claimed the payment is nowhere near enough, especially for the elderly.
Further measures include the scrapping of standing charges on gas bills from next year. The government also removed the 5% VAT levy on electricity bills, a move expected to save households about £45 a year.
In broader fiscal changes, import taxes are to be removed from over 100 food products. Fuel duty is to be frozen until July.
A subsidy scheme for older renewable energy projects has been altered. About three-quarters of its cost will be removed from bills and covered by general taxation.
The government has also scrapped plans for a levy to support hydrogen projects. Looking to long-term energy solutions, a Warm Home Loans scheme will offer government-backed loans of up to £35,000 for low-carbon energy alternatives.
Grants of up to £7,500 are available through the boiler upgrade scheme for heat pumps.
The government will also provide funding to Scotland, Wales, and Northern Ireland, encouraging similar initiatives in those regions.