Support 110 years of independent journalism.

  1. Chart of the Day
18 October 2022

Energy bills could rise to £4,347 from April

The Truss government’s U-turn over the energy price freeze means most households will be paying higher bills in six months’ time.

By Afiq Fitri

The government’s dramatic reduction of its two-year price freeze means that a typical UK household’s annual energy bill could surge next year to £4,347, according to energy consultants’ estimates.

In his first announcement as Chancellor, Jeremy Hunt said yesterday that the energy price guarantee would now only apply to everyone for six months until April 2023, instead of until October 2024. The guarantee, announced by Liz Truss last month, limits the cost to households of each unit of energy and was designed to limit the average household’s bill to £2,500 a year.

Hunt’s announcement means that, for most households, in six months’ time bills will be regulated once again by the price cap set by Ofgem, which the consultancy Cornwall Insight predicts will equate to an average of £4,347 a year. The typical annual bill will then briefly decline to £3,697 during the summer months before increasing to £3,722 next winter. Last winter the average energy bill was £1,277 a year.

Hunt said that the most vulnerable will continue to be protected beyond April 2023, and the Treasury will review how all households and businesses can be supported from this point on. “Any support for businesses will be targeted to those most affected and the new approach will better incentivise energy efficiency,” Hunt said.

Gareth Miller, chief executive of Cornwall Insight, said that the shortening of the guarantee was “inevitable”. “It will be vital that a Treasury led review avoids falling into a public finance led approach that is too far removed from social and economic realities for households. Hearts as well heads will need to be engaged,” he added.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday - from the New Statesman. The New Statesman's quick and essential guide to the news and politics of the day. Stay up to date with NS events, subscription offers & updates.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.

[See also: The market revolt against Liz Truss does not prove that austerity was justified]

Content from our partners
How are new rail networks boosting the economy?
Setting the stage for action on climate finance
Drowning in legacy tech: the move to sustainable computing – with Chrome Enterprise