The Chancellor, John Healey, is preparing a package of help with energy bills worth over £1bn for his Budget on 28 October, GB News reports. The FT had earlier reported that targeted help with winter fuel bills was expected.
GB News says the support would come ahead of a rise in the energy price cap in January. It says bills are forecast to rise by £276, taking the typical annual bill to £1,999. Some forecasts suggest a rise of as much as £442, it adds.
According to GB News, Healey is reportedly considering an extra £100 funded by taxpayers. The existing £150 discount is funded through charges on bills. It also reports that the Energy Secretary, Miatta Fahnbulleh, is pushing to remove all levies from household bills, which it says could cut costs by as much as £120 per customer.
Government sources had earlier indicated that the electricity VAT cut would be the last energy support this year, GB News says. Briefs.co says that cut is a six-month reduction in VAT on household electricity from 1 October. Citing people familiar with the plans, it says other options include a time-limited VAT cut on petrol and keeping the fuel duty freeze.
A summary published by KuCoin says Healey said departments must reprioritise to fund new activities.
None of these measures has been confirmed, and the figures have not been independently checked.