Hundreds of thousands of UK households might see power payments rise by £208 a yr from July because the Authorities warns the worth cap is about to climb once more.
Payments are anticipated to rise by £208 (Picture: Getty)
Hundreds of thousands of households throughout the UK are anticipated to face a £208 annual rise in power payments from July after the Chancellor warned the following power worth cap would return to ranges seen final yr.
Rachel Reeves informed MPs that the brand new cap, as a consequence of be confirmed by Ofgem subsequent week, is predicted to be “at the same degree to the cap in April final yr”. That may imply common annual family payments rising from the present £1,641 worth cap set in April 2026 again in direction of the £1,849 degree seen in April 2025, a rise of round £208.
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Power payments are anticipated to go up once more (Picture: Getty)
Talking within the Home of Commons, Reeves acknowledged households would really feel the impression of rising prices.
“I do know that any improve will likely be felt by households,” she stated.
The Chancellor argued that measures introduced in final yr’s Funds, together with a £150 discount on power payments, had softened the impact of rising wholesale costs.
She additionally stated the Authorities was ready to intervene once more if market situations deteriorate later this yr.
“We stand able to act if market situations worsen considerably later this yr,” Reeves informed MPs, including that contingency work was already beneath means on doable non permanent help for households and companies.
Alongside the warning on power payments, Reeves introduced a wider bundle of cost-of-living and business help measures.
The Authorities will introduce a 10p-per-mile improve in tax-free mileage charges, backdated to April 2026, benefiting employees who drive for his or her jobs, together with carers, tradespeople and neighborhood workers.
A 12-month street tax vacation for heavy items autos (HGVs) was additionally confirmed, with ministers saying it might save operators of huge lorries as much as £912.
Reeves moreover introduced a brief lower of greater than a 3rd to crimson diesel obligation till the top of the yr to help farmers and the rail freight sector.
The Chancellor stated the help bundle could be partly funded by means of modifications to the taxation of oil and gasoline companies working abroad.
She accused some corporations of structuring their affairs to keep away from paying company tax on UK power buying and selling income.
“At the moment we’re placing an finish to that apply,” Reeves stated, including the reforms had been anticipated to lift “lots of of tens of millions of kilos a yr”.
The Authorities additionally unveiled a £350 million “important chemical compounds resilience fund” aimed toward supporting strategically vital producers, alongside a £120 million bundle to assist Britain’s historic ceramics business enhance effectivity and lower power prices.
The newest power cap announcement comes as many households proceed to wrestle with dwelling prices regardless of inflation easing in current months.
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