Mini Budget 22: Government to cover environmental costs in energy support plan

£2,500 energy price cap

Chancellor Kwasi Kwarteng has confirmed the government will temporarily cover environmental and social costs that are currently included in domestic energy bills for two years as part of the Energy Price Guarantee.

Prime Minister Liz Truss announced the introduction of the EPG last week in a bid to alleviate the pressure from rising energy prices on households. The EPG will cap the unit price that consumers pay for electricity and gas and is expected to put a £2,500 ceiling on the average household's bills per year for a period of two years from October 2022. This should save households at least £1,000 per year, depending on energy use, Kwarteng said in today's Mini Budget. This will be on top of the £400 support all households will receive from the Energy Bills Support Scheme this winter. By co...