During the announcement of the mini budget on Friday 23 September, Chancellor Kwasi Kwarteng outlined a new plan to tackle the UK’s current energy crisis.
There will be three key steps to the package that is worth £60bn.
Firstly, the ‘Energy Price Guarantee’ will limit the unit price of gas and electricity for domestic consumers so .
The Chancellor said: “during the worst energy crisis in generations this government is on the side of the British people.
“People need to know that help is coming, and help is indeed coming.”
With the aid from the package, it is expected a typical household energy bill over the next two years will be £2,500, saving an average of £1,000.
This is in addition to the ‘Energy Bills Support Scheme‘ announced earlier this year, from which eligible households will get a £400 discount on their energy bills this winter.
Shadow Chancellor Rachel Reeves slammed the energy package saying Kwarteng was borrowing money to fund the energy crisis leaving future generations to pick up the pieces.
Hafee Faisal, a singe dad living in Leeds, is still worried about the pinch the cost of energy will cause his family this winter.
Faisal said: “it’s hard having to potentially choose between having the heating on or having a warm shower everyday and it’s not something I thought I would ever have to choose between.
“The government package will help in the short run but I think it will come back to haunt me in the future.”
The second package is the ‘Energy Bill Release Scheme’ which businesses will benefit from, acting in a similar way to the help for households.
Finally the ‘Energy Markets Financing Scheme’ will offer support for failing energy companies.
