EPG Extension: A Double-Edged Sword
What’s the Quick Fix?
Our dear government has decided to keep the Energy Price Guarantee (EPG) running for another three months. The cap on household bills stays at £2,500, but there’s a catch – a blanket raise to £3,000 is slated for April, aiming to cushion the financial blow.
Quoting the Rumble
- Dame Clare Moriarty – Chief Executive, Citizens Advice:
“Unfortunately, it’s not all good news. Pulling the Energy Bill Support Scheme leaves us with a monthly bill hike of £67 from April. With many already hit hard, the government should focus on long-term fixes. Those on low incomes will need extra help, both to pay their bills and to make their homes safer and warmer.”
- Sarah Coles – Head of Personal Finance, Hargreaves Lansdown:
“Hearing the extension will give a moment of relief to thousands already staring down the barrel of higher prices. Unfortunately, the loss of the monthly discount from April will still bite, adding an extra £67 each month. A staggering 48% of people face bill difficulties, jumping to 54% for those in their 30s and 40s. Over one in 20 have fallen behind (6%), soaring to one in seven among the lowest earners. The removal of that £67 discount will push these nightmares even deeper.”
Why the Extra £67 Matters
Picture this: your bank account is already stretched thin. If the monthly bill climbs by £67, suddenly you’re juggling more than just groceries and rent. It’s that same question people ask every month: “Where did my money disappear to?”
Long-Term Plans Needed
- Boosting energy‑efficiency: Better insulation, smart meters, and thermal upgrades.
- Providing sustainable support: Policy measures that keep low‑income households afloat.
- Keeping the energy market responsible: Transparent pricing and capped increases.
The Bottom Line
The government’s tea‑time decision to extend the EPG is a partial win. It buys us a few more months of relief but doesn’t wipe out the looming rise. For many, the next step is a sobering reality check: the extra charges are real, and the long‑term survival plan is still up in the air.
