UK splashes £40bn on household energy bills

UK power subsidies reached a record-breaking £39.3 billion between October 2022 and March 2023, according to government data

Record-breaking power subsidies of £39.3 billion were provided between October 2022 and March 2023 in the UK, the largest amount ever dedicated to supporting household bills in the country’s history.

The government has today said without intervention, households would have faced yearly energy bills peaking at nearly £4,300.

A few days ago, Ofgem, the energy regulator, announced a reduction in the price cap from £3,280 to £2,074 starting in July.

This adjustment is expected to result in a decrease in the average household bill by £426 compared to current charges under the Energy Price Guarantee.

Energy Security Secretary Grant Shapps said: “Putin’s illegal invasion of Ukraine and his reckless attempts to hold the West to ransom sent energy prices spiralling around the world.

“We acted swiftly and decisively to protect families and businesses from the full impact of that shock – covering around half a typical energy bill over winter. This helped safeguard jobs and livelihoods, and enabled many families to heat their homes.”

Chancellor of the Exchequer Jeremy Hunt said: “Putin’s weaponisation of global gas prices meant our energy bills soared, which is why we stepped in with immediate relief and cut the typical household energy bill by around half last winter, driving down inflation and relieving pressure on families”

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