London Daily

Focus on the big picture.
Thursday, Jan 23, 2025

UK household energy subsidies could hit zero later this year

UK household energy subsidies could hit zero later this year

A rapid drop in wholesale energy prices following a milder than usual winter means Britain's subsidy scheme to help households with costs could be paying out nothing in the second half of the year, analysts said on Thursday.
If maintained the drop could save the government billions of pounds at a time when it is under pressure to resolve a series of disputes about pay among public sector workers including nurses, ambulance drivers and teachers.

The government has guaranteed to keep average household energy bills below 2,500 pounds ($3,086) a year until the end of April and below 3,000 pounds until March 31, 2024.

Following the wholesale price slump analysts at Cornwall Insight forecast average annual energy bills, under a cap set by regulator Ofgem, will fall to around 2,201 pounds a year in July and reach 2,241 pounds a year in October.

If the Ofgem price cap falls below the government's guarantee it means the government does not need pay out subsidies the analysts have previously forecast could cost 38-42 billion pounds over the 18 month life of the scheme.

“With wholesale prices still well above pre-pandemic levels, the lower cost of the scheme is likely to spark conversation on the additional energy bill support the government may now be able to offer households,” the analysts said.

British wholesale gas prices, which soared to record highs last year, have fallen around 75% since last August when they hit a peak over plummeting supply of Russian gas to Europe following Russia’s invasion of Ukraine.

Prices however remain historically high, meaning consumers are unlikely to feel much better off.

"The cap predictions for April remain nearly three times what a typical household was paying pre-pandemic,” Craig Lowrey, Principal Consultant at Cornwall Insight said.
Newsletter

Related Articles

0:00
0:00
Close
Germany’s Democracy Under Strain: Political Labeling Sparks Free Speech Concerns
The Trump Era 2: A Time of Dramatic and Profound Change
BlackRock CEO Larry Fink Suggests Bitcoin Could Reach $700,000 with Increased Institutional Investment
Leaked Documents Reveal Google's Collaboration with Israeli Defense Forces During Gaza Conflict
Trump to Announce $500 Billion AI Infrastructure Investment
Dear President Donald Trump, I want to assure you that this fraud does NOT reflect the opinions of the majority of decent British citizens.
Olaf Scholz vs. Elon Musk: A Battle Over Common Sense, Which Scholz Appears to Be Missing
EU’s Overregulation Drives Innovation Collapse and Brain Drain
Five Billionaires on Track to Break One Trillion Dollar Wealth Barrier
TikTok Restored in the U.S. Following Trump inauguration
Bill Ackman Praises Social Media Platform X as 'The New Media'
Argentina Achieves Record Trade Surplus in 2024 Under President Milei
Italian Prime Minister Giorgia Meloni Proposes Rome as European Union Capital
France Urges EU to Act on Musk's Political Influence as Tensions Rise
Former Special Forces Blast Defense Ministry for Revealing Sensitive Details
Celebrity Responses to California Wildfires: Charity, Criticism, and Controversy
The Wildfires of Los Angeles: A Devastating Impact on Celebrities and California's Leadership
Tragic Loss: Teenager's Death Sparks Community Reflection in Bedford and London
UK Government Proposes Cap on Resale Ticket Prices to Combat Touts
Greenland's Future Caught in Diplomatic Crossfire Between Trump and Europe
EU Prepared to Lead Support for Ukraine Amid US Uncertainty, Says Estonian Prime Minister
Brompton E-Bike Component Diverted to UK Military Drone Production, Causes Delays
Romanian Gang Convicted of Human Trafficking and Exploitation in Dundee
Persistent Cold Snap Grips the UK: Severe Frost and Snow Disrupt Daily Life
Germany Faces Alarming Rise in Homelessness, New Report Shows
China’s Appetite for Salmon: A Game Changer in Global Seafood Markets
Russian Bots Allegedly Amplified NATO Critic Prior to Croatian Election, Researchers Reveal
Armenia Considers EU Membership Referendum Amid Strained Ties with Russia
French Finance Minister Explores Pension Reform Compromise to Secure Budget Agreement
Armenia Considers EU Referendum Amid Growing Rift with Russia
New Wildfire Ignites in Los Angeles as Region Battles Devastating Blazes
The Espionage Unraveled: A Russian Spy Network's Intricacies in the UK
U.S. Supreme Court Rejects Trump's Bid to Delay Sentencing in Hush Money Case
UK Financial Markets Remain Calm Amid Rising Government Borrowing Costs
Stellantis Achieves UK Electric Vehicle Sales Mandate Amid Factory Closure
TikTok Faces Potential Ban in the United States Amid Security Concerns
Pound Plummets to 14-Month Low Amid Concerns Over UK Borrowing Costs
Tensions Rise Over Planned Pro-Palestinian March in London
Bomb Scare in Central London: Abandoned Car Sparks Panic Near Regent Street
Police Seek Suspect in Antisemitic Incident at Liverpool Street Station
Regulatory Reprimand for London Charity Over Fundraising for Israeli Soldier
The Duchess of Sussex Mourns Devastating Loss of Beloved Rescue Dog
From Chairman to Controversial Politician: Rupert Lowe's Journeys in Business and Politics
Metropolitan Police Halts Pro-Palestine March Near BBC Due to Proximity to Synagogue
Inside Warwick Hospital: A Glimpse into the NHS's Battle Against Winter Pressures
Chappell Roan: A Synth-Pop Sensation Emerges as BBC Sound Of 2025 Winner
Search Intensifies for Missing Aberdeen Sisters Eliza and Henrietta Huszti
Pioneering Drug Consumption Room Opens in Glasgow
Ryanair Initiates Legal Action Against Disruptive Passenger in Landmark Case
Former Brexit Negotiator Oliver Robbins Appointed Top Civil Servant at UK Foreign Office
×