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  • UK household energy subsidies could hit zero later this year -Cornwall Insight

UK household energy subsidies could hit zero later this year -Cornwall Insight

A rapid drop in wholesale energy prices following a milder than usual winter means Britain's subsidy scheme to help households with costs could be paying out nothing in the second half of the year, analysts said on Thursday.

by | 19 Jan, 2023

If maintained the drop could save the government billions of pounds at a time when it is under pressure to resolve a series of disputes about pay among public sector workers including nurses, ambulance drivers and teachers.

The government has guaranteed to keep average household energy bills below 2,500 pounds ($3,086) a year until the end of April and below 3,000 pounds until March 31, 2024.

Following the wholesale price slump analysts at Cornwall Insight forecast average annual energy bills, under a cap set by regulator Ofgem, will fall to around 2,201 pounds a year in July and reach 2,241 pounds a year in October.

Read more Reuters

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