Government announces one in four British households to receive £1,200 extra support with energy price cap to set to soar

Ofgem has confirmed an 80.06 percent rise in the energy price cap, sending the average household’s yearly bill from £1,971 to £3,549 from October

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The Government has vowed to support British households following the news that the energy price cap will rise by 80 percent in October.

Ofgem has confirmed an 80.06 percent rise in the energy price cap, sending the average household’s yearly bill from £1,971 to £3,549 from October.

The cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1, and will remain in place until December 31, when it will be adjusted again.

The 4.5 million pre-payment meter customers, who are often the most vulnerable and already in fuel poverty, will see an even more punishing increase, with their average annual bill set to go up to £3,608.

Ofgem has confirmed an 80.06 percent rise in the energy price cap from October
Ofgem has confirmed an 80.06 percent rise in the energy price cap from October

In response to the announcement, a Government spokesman said: “We know people are incredibly worried about rising energy bills, following unprecedented gas prices across the continent driven by global events, including Putin’s aggression in Ukraine and his weaponisation of energy in Europe.

“Direct support will continue to reach people’s pockets in the weeks and months ahead, targeted at those who need it most like low-incomes households, pensioners and those with disabilities.

“As part of our £37 billion package of help for households, one in four of all UK households will see £1,200 extra support, provided in instalments across the year, and everyone will receive a £400 discount on their energy bills over winter.

“The civil service is also making the appropriate preparations in order to ensure that any additional support or commitments on cost of living can be delivered as quickly as possible when the new Prime Minister is in place.”

The cap will come into effect for around 24 million households in England, Scotland and Wales
The cap will come into effect for around 24 million households in England, Scotland and Wales

British Gas has also pledged to donate 10 percent of its profits during the energy crisis to help people struggling with rising bills.

The money will be provided through the British Gas Energy Support Fund, which gives grants to those most in need.

Thousands of customers will receive an average £750 per household, according to the firm.

But a charity which support the vulnerable said that families are facing one of the “bleakest Christmases” for years.

Rossanna Trudgian, head of campaigns and public affairs at Action for Children, said in a statement: “Today’s announcement, and warnings of even worse rises to come next year, makes it clear that the country is facing a national emergency.

“The families we support are already under enormous pressure and are now set to face a relentless wave of energy price hikes and inflation all while coping with the colder weather.

“We are seeing more and more frightened families who are reaching crisis point. Some parents are coming to us in tears, terrified about how they are going to feed their children, with some missing rent payments so their child can have a meal – one family has even resorted to taking seats out of their car to save on fuel.

“Many of these families have already cut back to the bone and have nowhere left to cut.”

“They are facing one of the bleakest Christmases in recent years.

“The next prime minister must provide emergency relief to struggling parents by committing to further targeted support for low-income families through the social security system.

“Families with children also face higher costs, so it is vital that any financial support takes into account family size and need.”

While Labour shadow chancellor Rachel Reeves said: “This is incredibly worrying and will strike fear in the heart of many families.

“We cannot wait any longer to act. This is a national emergency.

“The Tories must freeze energy bills now so households don’t pay a penny more in winter,” she tweeted.