The £3,000 price cap is £500 higher than the limit promised by former PM Liz Truss.
Millions of people up and down the country, who are already struggling with the cost of living crisis amid soaring food and energy costs, are now bracing themselves for a further hike in energy bills as government support schemes end.
The news came ahead of the government’s Autumn statement on Thursday, with chancellor Jeremy Hunt rewriting Liz Truss’s energy price guarantee. The government is expected to say that the £400 winter handout to help families struggling with energy bills will not be repeated next year, Mail Online reports.
It’s also worth noting that the £3,000 price cap is £500 higher than the limit promised by former PM Liz Truss, and almost three times above the level in April 2020.
And to add to the financial hardship many are experiencing, Sunak is also considering allowing further rises in council taxes next year in a bid to ease pressures on social care. Under current arrangements, councils responsible for social care can raise bills by 2.99 percent plus a 1 percent levy for social care, and if they want to increase them any further they have to call a local referendum.
However, this could all be set to change. The Times has reported that the government is eyeing up an increase in council tax as it struggles to plug its fiscal black hole.
Hunt is expected to announce up to £50bn of public spending cuts and tax hikes on Thursday.
It comes as research from Resolution Foundation researchers highlighted that older people will face the greatest income squeeze from soaring energy costs this winter, but young people will struggle most to afford their bills.
Politico reports: “Over-75s are expected to spend 8 percent of their total household income on bills, even with significant government support — but younger households are most at risk of being unable to pay bills or falling into arrears, according to their analysis out today.”
Basit Mahmood is editor of Left Foot Forward
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