The chancellor included the measure in his Budget unveiled later today (Picture: Getty)
Jeremy Hunt has announced a U-turn on the planned cut to the energy bills support amid the looming rise in prices in April.
The energy price guarantee will be extended for a further three months from April to June at its current level, the Treasury has confirmed today.
This means the average annual household bills will be capped at £2,500, saving a typical home around £160.
Rishi Sunak stressed the support will remain in place until the summer when ‘gas prices are expected to fall’.
People hold banners as they gather for a demonstration in Downing Street to protest increasing energy prices (Picture: Getty)
‘We know people are worried about their bills rising in April, so to give them some peace of mind, we are keeping the energy price guarantee at its current level until the summer when gas prices are expected to fall,’ he said.
‘Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.’
The EPG had been due to go up to £3,000 in April, but falling energy prices mean the current level can be extended to ‘bridge the gap’ until costs fall below the cap.
The chancellor, who included the measure in his Budget unveiled later today, said: ‘High energy bills are one of the biggest worries for families, which is why we are maintaining the energy price guarantee at its current level.
‘With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.’
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The support will remain in place until the summer when ‘gas prices are expected to fall’.