Chancellor John Healey is considering a major intervention worth more than £1bn at this month's budget to cut energy bills for poorer UK households, amid forecasts of sharp rises in January, according to the Guardian.
Key facts
- Chancellor John Healey is considering a major intervention to cut energy bills for poorer households at this month's budget.
- The plans could involve spending more than £1bn to help energy consumers.
- The bulk of the money is likely to go toward increasing the discount given to households on certain benefits.
- Forecasts show bills rising by hundreds of pounds in January, alarming ministers.
- Officials are also working on further changes to how much energy companies can charge customers.
Chancellor John Healey is considering a major intervention to cut energy bills for poorer households at this month’s budget, according to an exclusive report by the Guardian. The move comes after ministers became alarmed at forecasts showing bills rising by hundreds of pounds in January.
The Guardian reports that the chancellor is working on plans to spend more than £1bn to help energy consumers. The bulk of that money is likely to go toward increasing the discount given to households on certain benefits.
Beyond the direct spending, officials are said to be working on further radical changes that would alter how much energy companies could charge customers, according to the Guardian’s reporting.
The reported intervention is being framed as a response to the forecast rises due in January, which have raised concern within government about the impact on lower-income households.
The details reported by the Guardian focus on the scale of the proposed spending and its intended targeting toward benefit-receiving households, with the aim of cushioning the effect of higher bills.
Why it matters
Energy costs are a significant pressure on household budgets, and a forecast rise of hundreds of pounds in January could hit poorer families hardest. A targeted intervention at the budget would signal how the government intends to balance support for struggling households against public spending constraints.
Frequently asked questions
How much is the chancellor considering spending?
According to the Guardian, the plans could involve spending more than £1bn to help energy consumers.
Who would benefit most from the intervention?
The Guardian reports the bulk of the money is likely to go toward increasing the discount given to households on certain benefits.
Why is the government acting now?
Ministers became alarmed at forecasts showing energy bills rising by hundreds of pounds in January, according to the Guardian.