BREAKING: Energy regulator Ofgem has raised the energy price cap to £4,279 a year, which will come into effect from January 2023. gurpreetnarwan explains why households will be protected from this increase. 📺 Sky 501, Virgin 602, Freeview 233 and YT
How the energy price guarantee is changing from AprilAlong with a similar, albeit less generous scheme for business customers, the cost of the package could exceed £38bn over 18 months, according to the Institute for Fiscal Studies.To put this in context, this is around half the £100bn that was spent on furlough support and the self-employee income support scheme cost over 18 months during the pandemic.
Economists have also warned that households could also end up paying the price through higher inflation. Earlier this week the Organisation for Economic Co-operation and Development , the Paris-based thinktank, warned that the support would"increase pressures on already high inflation in the short term".
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