https://sputnikglobe.com/20230113/uk-government-could-save-12bln-on-support-measures-due-to-falling-energy-prices-reports-say-1106279871.html
UK Government May Save $12Bln Due to Falling Energy Prices, Reports Say
UK Government May Save $12Bln Due to Falling Energy Prices, Reports Say
Sputnik International
The government of the United Kingdom could get a windfall of around 10 billion pounds ($12 billion) due to falling energy pricesю
2023-01-13T11:00+0000
2023-01-13T11:00+0000
2023-05-28T15:25+0000
world
energy prices
fuel price
fuel prices
united kingdom (uk)
https://cdn1.img.sputnikglobe.com/img/104624/86/1046248653_0:128:4621:2727_1920x0_80_0_0_7058cfc161ab05b224706ffd216e6fa0.jpg
According media, the wholesale prices of gas have fallen to the levels of early 2022, meaning that energy bills for UK households will fall below the government's 3,000 pounds ($3,700) energy price guarantee in June. It would imply that the government could stop subsidizing these bills starting in July, saving the budget some 10 billion pounds, the report added, citing forecasts from Deutsche Bank. The fall in energy prices could improve public finances in the UK since the government would have to spend less money to reduce households' bills and could allocate these resources to other needs. At the same time, the report noted that such a windfall would hardly be felt by consumers since energy bills are still expected to reach over 2,500 pounds in October 2023, which is twice as much as a year ago. On September 8, then-UK Prime Minister Liz Truss announced a new energy price guarantee that freezes average energy bills at 2,500 pounds per year for the next two years. In November, Chancellor of the Exchequer Jeremy Hunt announced changes in the energy price guarantee proposed by Truss. He decided to keep a cap for household energy bills at 2,500 pounds per year until April 2023 and then continue the measure at the higher level of 3,000 pounds for a further 12 months.The UK has been facing a massive increase in inflation, which reached 11.1% in October. In November, the Bank of England raised its interest rate by 75 basis points to 3% per annum - the largest single increase in 33 years. The regulator also said that the UK economy had entered a recession expected to last until the second half of 2024.
united kingdom (uk)
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
2023
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
News
en_EN
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rosiya Segodnya“
british energy prices, fuel prices in britain, would uk save money due to falling energy prices, how much uk spends on energy, how much fuel does uk buy, uk fuel reserves, uk energy prices, will falling energy prices help uk, falling energy prices in britain
british energy prices, fuel prices in britain, would uk save money due to falling energy prices, how much uk spends on energy, how much fuel does uk buy, uk fuel reserves, uk energy prices, will falling energy prices help uk, falling energy prices in britain
UK Government May Save $12Bln Due to Falling Energy Prices, Reports Say
11:00 GMT 13.01.2023 (Updated: 15:25 GMT 28.05.2023) MOSCOW (Sputnik) - The government of the United Kingdom could get a windfall of around 10 billion pounds ($12 billion) due to falling energy prices, which will allow the authorities to spend less money on support measures for households across the country, British press reported on Friday.
According media, the wholesale prices of gas have fallen to the levels of early 2022, meaning that energy bills for UK households will fall below the government's 3,000 pounds ($3,700) energy price guarantee in June. It would imply that the government could stop subsidizing these bills starting in July,
saving the budget some 10 billion pounds, the report added, citing forecasts from Deutsche Bank.
The fall in energy prices could improve public finances in the UK since the government would have to spend less money to reduce households' bills and could allocate these resources to other needs.
At the same time, the report noted that such a windfall would hardly be felt by consumers since
energy bills are still expected to reach over 2,500 pounds in October 2023, which is twice as much as a year ago.
On September 8, then-UK Prime Minister Liz Truss announced a new energy price guarantee that freezes average energy bills at 2,500 pounds per year for the next two years.
In November, Chancellor of the Exchequer Jeremy Hunt announced changes in the energy price guarantee proposed by Truss. He decided to keep a cap for household energy bills at 2,500 pounds per year until April 2023 and then continue the measure at the higher level of 3,000 pounds for a further 12 months.
The UK has been facing a massive increase in inflation, which reached 11.1% in October. In November, the Bank of England raised its interest rate by 75 basis points to 3% per annum - the largest single increase in 33 years. The regulator also said that the UK economy had entered a recession expected to last until the second half of 2024.
