Longer-term plan needed for targeted energy bills support
Spring Budget 2023
Spring Budget 2023
Responding to this morning’s announcement from HM Treasury that the Energy Price Guarantee will remain at £2,500 for an average household for an additional three months from April, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG in the UK, said:
“Milder weather and lower demand for gas over the winter have helped keep the estimated cost of energy support down for the Government, meaning that extending the Energy Price Guarantee (EPG) at current levels comes within the original budget set out for this. What’s more, recent polling from KPMG (On behalf of KPMG, OnePoll surveyed 3,000 nationally representative UK adults between 6th-10th March 2023.) indicates that an increase in the EPG as planned would have seen half of households (49%) cut back on non-essential spending.
“While this move has been widely trailed, it can’t just be another three months where we wait and see what happens to wholesale prices. The Government needs to move beyond their short-term emergency measures and find a way to target support for energy bills on those who need it most. If social tariffs are the answer, then time is ticking to have the systems in place. As well as defining the groups that will receive ongoing support, Government and energy supplier data systems need to be connected in time for when the EPG comes to an end in April 2024.”
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