MSE News: energy prices to rise in April 2023 as Government scales back support

MSE_James

Update from MSE news: Energy prices to rise by 20% from April as Government announces scaled back support for households from next spring

https://www.youtube.com/watch?v=Q-nkEKaylQE 

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Hi all

At 11.30 this morning the Chancellor will be giving his Autumn Statement - and it could well include some announcements about what will happen at the end of the current six month Energy Price Guarantee period.

https://twitter.com/MartinSLewis/status/1592921375035248640

Please use this thread for your initial questions and reactions to any energy-related measures that are included in the statement.

Martin and MSE's team will be watching closely and will be publishing lots of new material throughout the day, which we'll link to here.

If necessary, we'll move other threads into this one to keep things tidy.

EssexHebridean

Does anyone know - has Martin stated whether his feeling on "Energy back to price cap but with new support..." relates to what will happen in April, or whether he feels that there is a chance that the EPG will be wound back still further, sooner?  (There may be more about this on his twitter but I'm not in a position to check that right now).

MSE_James

I've not seen any suggestion of any further change to energy price arrangements expected this side of 1 April. 

webjaved

Here is what the chancellor has announced:

• Tax as a percentage of GDP will increase by just 1% over the next five years;
• On personal tax, he will reduce the threshold at which the 45p rate becomes payable from £150,000 to £125,140. Those earning £150,000 or more will pay just over £1,200 more a year;
• The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024;
• Confirmed two new fiscal rules - the first is that underlying debt must fall as a percentage of GDP by the fifth year of a rolling five-year period. The second is that public sector borrowing, over the same period, must be below 3% of GDP;
• From April 2025, electric cars will no longer be exempt from Vehicle Excise Duty;
• On windfall taxes, from 1 January until March 2028 he will increase the energy profits levy from 25% to 35%;
• Also from 1 January, "we have also decided to introduce a new, temporary 45% levy on electricity generators... together these taxes raise £14bn next year".
  
• Stamp duty cuts will stay in place until March 2025;
• While the employers' national insurance contributions threshold is frozen until April 2028, the employment allowance will be retained at its new, higher level of £5,000 until March 2026;
• Hunt confirms the UK will continue to maintain the defence budget at least 2% of GDP to be consistent with our NATO commitment - but there is no 3% commitment as previously promised.
• 600,000 more people on Universal Credit will be asked to meet with a work coach to increase hours or earnings;
• On education, the chancellor has said he will invest an extra £2.3bn per year in schools;
• A £2.8bn funding increase for the social care sector;
  
• With regards to the NHS, the government will increase the budget for healthcare by £3.3bn.

MSE_James

Our MSE colleagues are live-tweeting the key announcements in this thread:

https://twitter.com/MoneySavingExp/status/1593197263303720962 

MSE_James

Martin's instant commentary on Energy Price Guarantee:

https://twitter.com/MartinSLewis/status/1593216894282387457

ariarnia

does anyone have any early maths for the unit rates if the cap is moved to £3000? assuming a flat increase i guess. 

@QrizB looking at you

MSE_James

MSE's utilities team has published an initial story on today's energy announcements:

https://www.moneysavingexpert.com/news/2022/11/government-extends-energy-support-from-april/ 

More from Martin coming soon too.

What_time_is_it

So, the government have announced an additional 12 months of the EPG from 1st April 2023 to 31st March 2024 at an "average" of £3,000 (on 12,000 kwhs gas and 2,900 kwhs electricity). Am I understanding that correctly?

1. What do we think the units rates will work out as? About 12.5p for gas and 42p for electricity?

2. What chance that this actually happens? Seems like a long timeframe to be committing to.

EssexHebridean

I totted up earlier on that I would expect to see something like 18p off peak/ 54p peak on my Octopus E7 rates (Eastern Region) but that assumes a SC staying the same too - which we believe may not be going to happen I believe? (That would be an increase from 14.89p/44.35p currently)  

ariarnia

i have no idea about 1 and asked that question myself on the mse anouncement sticky. it should be a simple question if there a flat uplift but my brain isnt up for it today. 

about number 2. i can't help but think we're going to see a policy for next winter announced in september time like the £400. but announced close tot he winter and 'because of how well things have gone' since the budget (if they do!). mainly because theres going to have to be an election around then and its an easy give away to hope for some good will as people turn out for the polls.