THE Chancellor Jeremy Hunt has confirmed that the UK Government's energy price guarantee - which limits the amount energy suppliers can charge per unit of energy - is to be extended for a further three months.
Under the scheme, average household energy bills were capped at £2500 - although customers that used more than the average would still have to pay more.
Initially, the government had intended to increase the cap to £3000 from April. However, energy suppliers expected a U-turn to be imminent after they were told by government officials to prepare two sets of bills for customers.
It is expected that scrapping the planned 20% increase will cost around £3 billion.
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Prime Minister Rishi Sunak said: “We know people are worried about their bills rising in April, so, to give people some peace of mind, we’re keeping the energy price guarantee at its current level until the summer, when gas prices are expected to fall.
“Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.”
Falling global energy prices mean that the current level will be extended to “bridge the gap” until costs are expected to fall below the cap.
Hunt said: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the energy price guarantee at its current level.
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“With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
Stewart Hosie MP, the SNP's spokesperson on the economy at Westminster, said: "It's truly pathetic that the Chancellor has failed to cut energy bills, despite having ample resources to do so.
"The Tories are ripping families off by keeping bills at such exorbitantly sky-high levels, with many families forced to pay three times what they paid a year ago.
"With energy companies making record profits, and the wholesale price of gas falling, there is no excuse for this shameful Tory decision, which will hammer household incomes and push even more families into poverty, hardship and debt.
"Instead of punishing families, the Tories could have saved households £1400 by backing the SNP's calls to cut energy bills by 20% and maintain support payments for all those that currently receive them.
"This vital support could be funded using the £30 billion extra headroom available to the Chancellor, and by making fairer choices like introducing a levy on share buybacks, scrapping non-dom tax status and expanding the windfall tax.
"Scotland is a wealthy, energy-rich country but families are being fleeced by Westminster. With change on offer from the Tories or pro-cuts, pro-Brexit Labour Party it's clear independence is the only way for Scotland to build a strong, fair and prosperous future."
A key plank of the Budget is expected to be a package of measures aimed at removing barriers to work – including an expansion of free childcare provision.
The current provision of up to 30 hours a week of funded childcare in England for parents of three and four-year-olds is expected to be extended to also cover one- and two-year-olds.
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