The British government has decided to extend the energy price cap for households for another three months. This decision comes just hours before the spring budget is presented to Parliament. The energy price guarantee caps bills at £2,500 per year for the average household. This measure will be maintained at the same level until the end of June 2023. The decision to extend this guarantee comes against a backdrop of a cost of living crisis in the country, exacerbated in particular by rising energy prices. Pressure had been mounting for weeks to get the government to maintain this assistance to households. The annual bill for an average household would otherwise have risen to £3,000.
Another 400 pounds of assistance per household will be paid in April. The payment of this aid was made directly through the energy supplier and was staggered between October and March. The government expects household energy bills to fall from July onwards, as gas prices on the wholesale markets fall. Since the fall, energy prices have already fallen by 50%, reducing by two-thirds the borrowing needed to finance energy support starting in April.
A budget to meet British demands
Finance Minister Jeremy Hunt presented his plan to halve inflation, grow the economy and reduce debt. The government has also announced measures to encourage thousands of Britons to return to the labour market in the face of labour shortages that are weighing on the economy.
Salary increases for civil servants
In the midst of a day of massive strikes in transport, health and education, the question of wage increases for civil servants could also be included in the budget. The British government is seeking to respond to the pressing demands of the British people in the face of inflation of more than 10% which is eroding their purchasing power.
In conclusion, the decision to extend the energy price cap for UK households until the end of June 2023 was well received by the public. However, the government must continue to respond to the pressing demands of Britons in the face of the country’s cost of living crisis. The measures announced in the spring budget are designed to address these concerns, including incentives for workers to return to the workforce and consideration of wage increases for public servants.
