Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of the potential impact of the forthcoming increase in the energy price cap on household finances.

The level of the price cap level for the period 1 January to 31 March has not yet been confirmed, and any forecast at this stage is uncertain. Ofgem will announce the level of the forthcoming price cap at the end of November in the usual way. We will continue to work closely with Ofgem to monitor wholesale energy prices.

That said, tackling the cost of living is a priority for this Government. The measures announced at the Autumn Budget on 28 October provide breathing space for families, particularly with energy costs.

The Government is launching a £2.6 billion Household Energy Payment, which will provide a £100 payment directly into bank accounts from January 2027 for households in England in council tax bands A-D, supporting up to 20 million households. The UK Government is allocating this additional funding to the devolved administrations using the Barnett formula. They will be responsible for deciding how best to use this funding based on local needs.

This is immediate relief to give low-income households breathing space this year, alongside the Government extending the temporary 0% rate of VAT on qualifying domestic electricity supplies until July 2027. This is expected to ensure the annual Ofgem price in April 2027 remains around £50 lower than it would otherwise have been.