Chancellor Jeremy Hunt has confirmed that the Energy Price Guarantee (EPG) will be extended at its current level for a further three months, in a move to relieve pressure on the cost-of-living crisis facing many families in the UK.

The EPG, which will cap average annual household bills at £2,500, will remain in place from April to June, offering some respite to households struggling with rising energy costs.

The Chancellor stated that extending the EPG at £2,500 for the next three months will save the average family a further £160 on top of the energy support measures already announced.

This decision was made following calls from money-saving expert Martin Lewis and other experts to help families who are still experiencing real distress amid the squeeze on household incomes.

Although wholesale energy prices have been falling, there is still enormous pressure on family finances, and the Chancellor recognised the need to stand ready to help when possible.

Concerns about rising bills

Prime Minister Rishi Sunak also acknowledged the concerns of many people about rising energy bills, and to give people some peace of mind, the government is keeping the energy price guarantee at its current level until the summer when gas prices are expected to fall.

Continuing to hold down energy bills is part of the government’s plan to help hardworking families with the cost of living and halve inflation this year.

The EPG had been due to rise to £3,000 in April, but falling energy prices mean that the current level can be extended to bridge the gap until costs fall below the cap. This extension of the EPG will offer temporary relief to families and will be a welcome move for many struggling households.

In conclusion, the extension of the EPG at its current level for a further three months is a step in the right direction to help families with the cost-of-living crisis they are facing.

The government’s decision to listen to the concerns of experts and to offer temporary relief to families is commendable, and hopefully, it will lead to long-term solutions that will alleviate the pressure on households struggling with the rising cost of energy.

The government urges the public to compare energy prices as there are still deals on the market where people can save up to 5% of the cap which can be hundreds of pounds a year.