Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has had recent discussions with Cabinet colleagues on the potential impact on households of increases in the Energy Price Guarantee.

As announced at the Autumn Statement, the Energy Prince Guarantee (EPG) will rise to £3000 from April 2023 until April 2024. It is important to ensure fiscal sustainability whilst continuing to provide support on energy bills.

The EPG continues to be a significant intervention and will save the average household around £900 this winter, based on forecasts at the Autumn Statement. The EPG, alongside the £400 Energy Bills Support Scheme (EBSS) for all households, will mean the typical household has received around £1300 of support this winter. The Government has announced £37 billion of support for households and individuals for the cost of living in 2022-23. As part of this financial year’s cost of living support and in addition to universal support with energy bills, millions of the most vulnerable households have received £150 Council Tax rebate and one-off £650 Cost of Living Payment for those on means-tested benefits, with additional £300 cost of living support for pensioners and a one-off cost of living payment of £150 for those claiming disability benefits.

The Government has announced further support for 2023-24 designed to target the most vulnerable households. This cost of living support is worth £26 billion in 2023-24, in addition to benefits, including £300 cost of living payments for pensioners, £150 for individuals on disability benefits and £900 for those on means-tested benefits.

The Government continues to keep the current situation under review. The economic and fiscal position remain challenging, which is why it is right that the Government has taken action to maintain fiscal sustainability whilst targeting its support to the most vulnerable.