Energy regulator Ofgem confirmed today that household energy bills will soar by £693 per year to a record £1,971 for a typical household from the beginning of April as gas prices soared to unprecedented highs.
The decision is likely to impact 22 million households across Britain, and applies to those who are on their energy supplier’s default tariff.
In an effort to help consumers, the chancellor promised to “take the sting out” of the price rises, including a £200 up-front rebate on energy bills from October, which households will need to repay.
The other major measure Sunak announced was a £150 council tax rebate for around four in five homes in England in April.
How will today's announcements affect you?
What council tax band am I in?
Councils in England place homes into various bands – from A though to H – based on the value of your property.
The prices start from roughly £40,000 in Band A to £320,000 and over in Band H.
Council tax varies from council to council and you can check to see what band your property in by visiting the government website and entering the address or postcode.
Watch: Millions of households to get £150 council tax rebate
Am I eligible for a rebate?
If your property lies in Bands A, B, C or D – 80% of homes in England – then you will be eligible for the £150 rebate announced by Sunak today.
Sunak told the House of Commons this discount would not need to be repaid.
Properties in Bands E, F, G or H are not eligible for the government rebate – however you may still qualify for help with energy bills.
It will not apply to second homes or empty homes.
What other measures is the government introducing?
The government said they are providing support worth around £12 billion this financial year and next, with more updates on measures to help to come.
As well as the council tax rebate, Sunak also said that every British household will receive an upfront £200 discount on their energy bill in October, with four in five households covered.
The government will provide the cash for this, but it wants the money back so will hike bills by £40 per year over the next five years from 2023 to recoup it.
If all goes to plan, wholesale energy prices will drop so households can pay back what they owe, without a major rise in bills.
Sunak also confirmed existing plans to expand the eligibility to Warm Homes Discount by a third so that three million vulnerable households are eligible, while £3bn will be spent this parliament to help half a million lower income homes become more energy efficient – saving £290 per year.
Am I eligible for the Warm Homes Discount?
The government’s Warm Home Discount is a £140 discount on electricity bills for winter 2021 to 2022.
The money is not paid directly to consumers – instead a one-off discount on electricity bills between October and March will be applied.
However, the discount only applies to people getting the Guarantee Credit element of Pension Credit or are on a low income and meet your energy supplier’s criteria for the scheme.
Electricity suppliers decide who can get the discount, which is limited.
However, Labour have today called for an extension to nine million households of the Warm Homes Discount.
More details can be found on the government website.
Watch: Sunak announces new measures to help with energy price rise