On 17th October 2022, the UK government announced that it would U-turn on its pledge to freeze all household energy prices for two years. The Energy Price Guarantee previously meant that an average household might have expected to pay £2,500 per annum in over the next two years. With the Guarantee now set to end in April 2023, average household energy bills could rise to £3,500– £4,300 next year. The government has pledged to develop a targeted approach and “incentivise energy efficiency”, in a bid to reduce public expenditure propping up household bills.

Devising a system to ensure adequate targeted financial support for low-income and vulnerable households should be the immediate priority. Investing in home retrofits to reduce household exposure to volatile gas prices is also key, and a matter of fiscal responsibility. In this briefing “Future UK energy price support”, E3G encourages the government to confirm energy efficiency as a national priority and mobilise government resources – setting a target for energy demand reduction, and forming a Delivery Taskforce with industry to support various priorities.

Download the briefing here