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| Energy bill help to be reduced from April, says Jeremy Hunt | Energy bill help to be reduced from April, says Jeremy Hunt |
| (about 1 hour later) | |
| A scheme to cap all household energy bills for two years will be cut from April, the new chancellor has said. | A scheme to cap all household energy bills for two years will be cut from April, the new chancellor has said. |
| Jeremy Hunt said the support - which limits a typical household bill to £2,500 - would be reviewed so it cost "significantly less than planned". | Jeremy Hunt said the support - which limits a typical household bill to £2,500 - would be reviewed so it cost "significantly less than planned". |
| He said the most vulnerable would continue to be protected from soaring wholesale energy prices. | He said the most vulnerable would continue to be protected from soaring wholesale energy prices. |
| The move sparked concern among consumer groups who warned households would be plunged into uncertainty. | The move sparked concern among consumer groups who warned households would be plunged into uncertainty. |
| "Everyone knows why decisions have been made at breakneck speed, but there are questions that need to be answered, and answered quickly," said National Energy Action boss Adam Scorer. | "Everyone knows why decisions have been made at breakneck speed, but there are questions that need to be answered, and answered quickly," said National Energy Action boss Adam Scorer. |
| "Who will still get support? Will it include vulnerable households not on welfare benefits? Will that support be deeper for those in greatest need?" | "Who will still get support? Will it include vulnerable households not on welfare benefits? Will that support be deeper for those in greatest need?" |
| Mr Hunt is trying to save money after the government's mini-budget left a big projected hole in the public finances. Its plan for large tax cuts sparked turmoil on financial markets over how the plans would be funded. | Mr Hunt is trying to save money after the government's mini-budget left a big projected hole in the public finances. Its plan for large tax cuts sparked turmoil on financial markets over how the plans would be funded. |
| "Beyond [April], the Prime Minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices," the chancellor said. | "Beyond [April], the Prime Minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices," the chancellor said. |
| "The objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need," he said. | "The objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need," he said. |
| What Jeremy Hunt's statement means for you | What Jeremy Hunt's statement means for you |
| Two thirds of tax cuts from mini-budget reversed | Two thirds of tax cuts from mini-budget reversed |
| Pound rises as chancellor moves to calm markets | Pound rises as chancellor moves to calm markets |
| Under the Energy Price Guarantee, announced last month, Ms Truss's government capped all household energy bills for two years from 1 October in a bid to prevent millions facing hardship this winter. | Under the Energy Price Guarantee, announced last month, Ms Truss's government capped all household energy bills for two years from 1 October in a bid to prevent millions facing hardship this winter. |
| Before this guarantee was introduced, the energy price cap - the highest amount suppliers are allowed to charge households for every unit of energy they use - had been due to rise to £3,549 for a typical household from October. | Before this guarantee was introduced, the energy price cap - the highest amount suppliers are allowed to charge households for every unit of energy they use - had been due to rise to £3,549 for a typical household from October. |
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| Consumer rights campaigner Martin Lewis said that while the support for intervention had been desperately needed, a "universal energy price guarantee was always expensive and poorly targeted". | Consumer rights campaigner Martin Lewis said that while the support for intervention had been desperately needed, a "universal energy price guarantee was always expensive and poorly targeted". |
| But he added: "The post-April support will still need to reach a decent way up the net and support middle earners, energy rates are still huge." | But he added: "The post-April support will still need to reach a decent way up the net and support middle earners, energy rates are still huge." |
| Ms Truss's plan - thought to cost up to £150bn - was to be funded through government borrowing after the prime minister rejected calls to extend a windfall tax on oil and gas firms. | Ms Truss's plan - thought to cost up to £150bn - was to be funded through government borrowing after the prime minister rejected calls to extend a windfall tax on oil and gas firms. |
| However, former chancellor Kwasi Kwarteng followed it with plans to cut taxes by some £45bn. | However, former chancellor Kwasi Kwarteng followed it with plans to cut taxes by some £45bn. |
| Concerns about rising borrowing sparked turmoil on financial markets which spilled over into the mortgage market, where interest rates on loans have surged to 14-year highs. | Concerns about rising borrowing sparked turmoil on financial markets which spilled over into the mortgage market, where interest rates on loans have surged to 14-year highs. |
| On Monday, Mr Hunt promised to review the energy support while also reversing £32bn worth of the planned tax cuts. The new chancellor said he was doing "what is necessary for economic stability". | On Monday, Mr Hunt promised to review the energy support while also reversing £32bn worth of the planned tax cuts. The new chancellor said he was doing "what is necessary for economic stability". |
| He added that the Energy Price Guarantee had been "the biggest single expense" of Mr Kwarteng's growth plan. | He added that the Energy Price Guarantee had been "the biggest single expense" of Mr Kwarteng's growth plan. |
| When it was announced, many had criticised the scheme for not being targeted enough, arguing the support should have been means tested. | When it was announced, many had criticised the scheme for not being targeted enough, arguing the support should have been means tested. |
| The Institute for Fiscal Studies think tank, which had described the package as "clearly not sustainable in the long-term", welcomed Mr Hunt's decision. | The Institute for Fiscal Studies think tank, which had described the package as "clearly not sustainable in the long-term", welcomed Mr Hunt's decision. |
| "While large-scale untargeted support for households this winter was perhaps unavoidable we need to do everything possible to put in place a better designed, better targeted and less expensive scheme next year," said IFS director Paul Johnson. | "While large-scale untargeted support for households this winter was perhaps unavoidable we need to do everything possible to put in place a better designed, better targeted and less expensive scheme next year," said IFS director Paul Johnson. |
| Call for clarity | Call for clarity |
| But the Centre for Ageing Better, a charity, said many older people faced an anxious wait to find out how much help they would get. | But the Centre for Ageing Better, a charity, said many older people faced an anxious wait to find out how much help they would get. |
| Boss Carole Easton said: "The previous two-year promise provided a level of security for people in uncertain times. | Boss Carole Easton said: "The previous two-year promise provided a level of security for people in uncertain times. |
| "It is vital that the government gives plenty of advance notice with clear messaging as to who will be eligible for targeted support in April." | "It is vital that the government gives plenty of advance notice with clear messaging as to who will be eligible for targeted support in April." |
| Under Ms Truss's scheme, businesses are protected for six months from soaring energy prices, with those struggling most set to continue receiving help pending a review. | Under Ms Truss's scheme, businesses are protected for six months from soaring energy prices, with those struggling most set to continue receiving help pending a review. |
| Mr Hunt suggested the targeted approach would continue, but the Federation of Small Businesses (FSB) called for clarity. | Mr Hunt suggested the targeted approach would continue, but the Federation of Small Businesses (FSB) called for clarity. |
| "The review to come on business and consumer energy support after six months must avoid a cliff-edge for small firms that remain impacted and vulnerable," said the FSB's national chair, Martin McTague. | "The review to come on business and consumer energy support after six months must avoid a cliff-edge for small firms that remain impacted and vulnerable," said the FSB's national chair, Martin McTague. |