What happens to the Energy Price Guarantee in April?

TheGardener

TBF, targeted doesn't just mean the poorest - how about the first 'average' amount of leccy and gas being subsidised, and anything over that that you use is at an unsubsidised rate? That way, those with floodlit tennis courts and swimming pools are not using subsidised rates to light/heat them. Easy enough to identify those who run medical equipment at home (many already get additional benefits to cover that) and to operate a system that works for EV's.
That's the only way to get people to use less and seems the most equitable. 

EssexHebridean

Thread now running with the answer to the original question here: https://forums.moneysavingexpert.com/discussion/6395302/energy-price-guarantee-no-longer-2-years-just-6-months-at-current-level#latest 

Chrysalis

njm123 said:

Saga said:

Hunt's just announced that the EPG will remain in place only till April 2023. A "Treasury-led review" will take place with the "objective to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need. Any support for businesses will be targeted to those in most affected and the new approach will better incentivise energy efficiency."

For which read   "If we deem you poor enough you will get help, if not you can subsidise the poor through your taxes and your bills"

Sadly political promises are just that, I Was really lucky the decision for me to keep my contract was easy, my rates are only slightly above EPG.

But those who gave up long fixes for the EPG I can understanding feeling conned, and I dont know if there is a way for them to get their contracts reinstated, would be goodwill from the suppliers.

With that said my contract only will last a few months past April due to Octopus having a allergy to multi year fixes in 2022.  So I am not in a much better boat myself.

Its only logical (and fair) the poorest get the most help, we do need to not fall into selfishness mode, but perhaps they might come up with something thats a wider net than just for those on income related benefits like incorporating tiered units into it so will still be much cheaper and also have a net wide enough to catch those on average incomes.

The existing EPG was just really wasteful with its all you can eat coverage.

ariarnia

MattMattMattUK said:

Shedman said:

MattMattMattUK said:

njm123 said:

Saga said:

Hunt's just announced that the EPG will remain in place only till April 2023. A "Treasury-led review" will take place with the "objective to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need. Any support for businesses will be targeted to those in most affected and the new approach will better incentivise energy efficiency."

For which read   "If we deem you poor enough you will get help, if not you can subsidise the poor through your taxes and your bills"

That is how society works, higher earners subsidise low earners.

Isn't it more like those not on benefits subsidise those that are even if they themselves are not what would be regarded as high earners aka the squeezed middle....

Technically everyone with a adult net average annual earnings of £31,500 or greater subsidises those who earn less as that is the threshold to be a net contributor, though it does move from £29,000 to £36,000 depending on exactly how it is calculated. 

guessing most people pay about 25/30% tax in income tax & national insurance meaning the gross earnings point is somewhere around 45k? near but not quite higher rate tax band.