Energy support to be slashed by £13bn as Hunt reviews 'unsustainably expensive' package

Energy assistance will be cut by £13 billion as Hunt examines a ‘unsustainable’ programme.

The new support package will see a significant reduction from what is already provided.

As Chancellor Jeremy Hunt gets ready to present the support plan for 2023, millions of people will have their access to energy assistance reduced.

He will soon announce a further £5 billion in energy assistance for firms for the next fiscal year, a significant decrease from the £18 billion package announced last year.

The help will begin in April 2023, and the details will be announced by the Chancellor later today. Even though the government is announcing help for an additional year, it will actually be less than what is now provided.

The government conducted a study to “ensure longer-term affordability” and public “value for money,” which is why the assistance levels have changed.

“We are protecting businesses from high energy costs this winter, caused by Putin’s invasion of Ukraine, through the six-month £18 billion Energy Bill Relief Scheme,” according to a Treasury official.

“However, this is very expensive, and we need to ensure longer-term affordability and value for money for the taxpayer.”

Living standards in the nation have fallen as a result of people’s continued struggle with stagnant wages, rising taxes, and rising expenses.

However, Resolution Foundation researchers predicted that families will experience a “groundhog year” in 2023, with disposable incomes predicted to decline even further this year.

Before they improve, living conditions are likely to grow “far worse,” they said.

The year 2023 should mark the end of double-digit inflation, but for many families, who expect to see their earnings decline by a similar amount to what they did in 2022, it seems to be a groundhog day.

According to Mr Bell, a 10% increase in the National Living Wage and benefits will assist many families in April.

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