I’ve received this message from the DWP. There is important detail here for pensions, the measure is expected to bring inflation down by up to 5%.
With energy prices climbing, this morning the Government has announced a historic intervention, which will support both families and businesses through the upcoming winter, whilst also setting out a vision for the future, ensuring that the country is never left in this situation again.
In the immediate term, this action will also help to curb rising inflation by up to five percentage points.
The intervention can be summarised as follows:
Help for families:
- From 1 October, a new, two-year ‘Energy Bills Guarantee’ will ensure that the average household in Great Britain will pay no more than £2,500 on its energy bills per annum.
- This will be paired with both the existing Energy Bill Support Scheme (EBSS), which will provide £400 support to households, and a £150 saving, brought about by a temporary suspension of green levies on energy bills.
- Based on current energy prices, the three measures above will save the average household £1,000 per year, keeping energy bills close to the current cap level.
Help for businesses and other non-domestic energy users:
- A new six-month scheme will provide equivalent support measure for businesses and other non-domestic energy users, such as churches and schools, protecting them against rising energy bills.
- This is a universal offer, which will be available to all businesses that are not on fixed price contracts or have agreed fixed price contracts in recent months.
- After six months, the Government will provide further support for vulnerable industries, such as hospitality.
- There will be a three-month review to consider where this should be targeted to make sure those most in need get support.
The DWP also tell me a factsheet on the energy announcement is now live.