Government ‘looking to cut extra £400 off gas and electricity bills’

The Treasury is reportedly exploring the feasibility of a government-lending scheme for energy suppliers

Big Zero Report 2022

The government is reportedly exploring the option to cut an extra £400 off the customers’ fuel costs.

The Sunday Times reported that the Treasury has proposed a multibillion-pound plan for a government-lending scheme for energy suppliers.

The proposals, which could limit the price cap increase expected in January, allegedly aim to change the way Ofgem determines the level at which the cap should be set by removing an allowance that energy companies can charge customers.

Instead, the plan suggests the cost would be covered through financing by the Treasury and the Bank of England.

On Thursday, the Prime Minister, Chancellor Nadhim Zahawi and Business and Energy Secretary Kwasi Kwarteng met industry leaders from the electricity sector to discuss what more they can do to help people struggling with rising energy prices.

However, no certain measures or hints of a potential government energy bill support package were announced after the meeting.

A Treasury spokesperson told ELN: “We know that rising prices caused by global challenges are affecting how far people’s incomes go, which is why we have continually taken action to help households by phasing in £37 billion worth of support throughout the year, which includes specific support to help people through the difficult winter ahead.

“Eight million of the most vulnerable households will see £1,200 extra support, provided in instalments across the year, and everyone will receive £400 over the winter to help with energy bills.

“That’s including a record fuel duty cut and a National Insurance cut worth up to £330 a year for the typical employee.”

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