How will John Healey’s energy support package affect you?
Chancellor’s ‘new course’ includes a £100 one-off payment, low-carbon upgrade loans and an end to standing charges John Healey has unveiled a package of support for households bein
By The Guardian
Chancellor John Healey has announced a package of measures aimed at helping households with energy costs, including a one-off £100 payment and plans to remove gas standing charges.
Around 20 million households in council tax bands A to D in England are due to receive the payment this winter. The money will be paid directly into bank accounts and is part of a £2.6 billion support package.
Wales has said it will match the payment, while the Scottish Government is planning to replicate the scheme.
The payment follows concerns about rising household energy bills. Mr Healey said the Government was setting “a new course” to bring energy costs down in line with Europe.
Gas standing charges are also due to be removed for around 23 million homes in England, Scotland and Wales in 2027, or as soon as possible afterwards.
Standing charges are fixed daily fees applied regardless of how much gas a household uses. The typical annual cost is about £108.
Under the proposed changes, those fixed costs will instead be included in the unit price of gas. The Treasury said this could reduce annual bills by an average of £45 for 60% of households, although people who use more gas could pay more through the unit rate.
The Chancellor has also announced plans for low-carbon upgrade loans, allowing households to borrow money for improvements intended to reduce energy use.
Further changes are planned to how the costs of renewable energy and grid upgrades are funded. Mr Healey said the aim was to reduce pressure across household energy bills over the longer term.
The Government is asking energy regulator Ofgem to deliver the removal of gas standing charges from 2027, or as soon as possible after.