Analysts have predicted a drop in energy bills below £2,000 from July due to falling wholesale gas prices.

Wealth management group Investec suggests energy bills in the UK will fall to an average of £1,981 per year from July, due to a decrease in wholesale gas prices across Europe.

The report notes that this is a fifth lower than their previous forecast of £2,478 for July.

In addition, the government‘s funding for household bills will reduce in July, resulting in a cap on the amount people pay per kilowatt of gas and electricity, which will see an end to its support scheme.

According to recent data, the government had spent around £1,500 per household this winter, contributing to an all-time high borrowing of £16.7 billion in February.