17 October 2022
If you are covering the changes to energy bills support, please see the following comment from Tom Gilbey, equity research analyst at Quilter Cheviot:
“The energy price guarantee and the energy bill relief scheme that were welcomed with open arms just weeks ago have already seen dramatic change, with the new Chancellor announcing today that these measures will only remain in place until April 2023 as opposed to the two years the government had initially promised.
“While the measures will still help families stay warm and keep businesses open this winter, concerns surrounding future affordability will no doubt have made a swift return.
“The measures previously announced were generous and provided reassurance to households and businesses alike, but the lack of clarity over who would pay the bill – which was set to cost up to £150bn – became its ultimate downfall. The new Chancellor, Jeremy Hunt, has been quick to tear up the list of tax cuts and spending promises announced by Kwasi Kwarteng in his mini-budget, and it is therefore understandable that the costly energy bill support will take a hit as a result.
“Going forward, the Treasury-led review announced this morning must be thorough and needs to provide a resolution that goes far enough in helping people, while also being something the government is able to stick to.
“While Hunt has committed to providing support for those most in need and promised that the new approach will better incentivise energy efficiency, we can be certain that the level of support available after April 2023 is unlikely to be anywhere near as generous as the former package.”
