Homes predicted to need more government cash to tackle rising energy bills

MPs have been told that the government may have to hand out more money to low-income families by the end of the year

Big Zero Report 2022

Economists have warned that the government may need to step in again to help people tackle rising energy bills.

A few days ago, the Chancellor announced a new package of measures, including a £400 grant for all households.

Stephen Millard, Deputy Director of the National Institute of Economic and Social Research told MPs at the Treasury Select Committee: “The key thing is when we know what is going to happen to bills in October, as soon as that’s announced, I think we will have a much clearer idea.

“My gut feeling tells me that the package that was announced recently will not be enough and it will have to be revisited in the Autumn Budget.”

Analysts from Cornwall Insight recently estimated that the October default tariff cap will be £2,879 while this could rise to more than £2,900 in January for the first time.

Mr Millard added: “I think with energy prices rising, with food prices rising for the country as a whole we are going to have to take a real income hit and there is nothing actually that the government can do about that.

“But the real issue is where that hit falls disproportionately on the poorest members of society who spend of their incomes on heating and food.

“I think it’s going be important to come back again to supporting those households in the Autumn Budget.”

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