UK energy costs will increase to £3,000 but Jeremy Hunt confirms cost-of-living payments of £1,350

UK Chancellor Jeremy Hunt confirmed during his "Autumn Statement" that the "Cost of Living" assistance of £1,350 to most vulnerable households in the UK would continue beyond April. However, Hunt added that energy costs in the UK are likely to rise up to £3,000.

The assistance beyond April would bring some relief to the households, though costs would remain painfully higher compared to the previous year. The Ofgem price cap was £1,227 until October 2021, which is the Energy Price Guarantee is not the long-term solution the Brits have been looking for.

The assistance also includes a payment of £900 to households receiving benefits like Universal Credit, Tax Credit, and Pension Credit. The government will also be paying £150 to persons receiving disability benefits like Personal Independence Payment. Likewise, the government will also pay £300 to pensioners, even those who receive the Winter Fuel Payment.




Jeremy Hunt’s statement on Thursday offered clarity on the future of the Energy Price Guarantee, which he had said would not go beyond April 2023. Initially, the government in October had decided to pay £2,500 to vulnerable houses until October 2024 before Hunt curtailed the plans.

The cost of energy has been rising across Europe following the Russian invasion of Ukraine. The UK is among the worst hit, and the fears of recession have gripped the nation, further pushing the living costs higher.

FAQs:

1. Who is the Chancellor of the UK?
   Jeremy Hunt became the Chancellor after Kwasi Kwarteng was fired.
2. What’s the expected price of energy in the UK?
   Energy costs are expected to rise up to £3,000.