Turn2us, the financial support charity, published its response on 3 February 2022 to the announcement of a higher energy price cap, saying the change would leave millions of people uncertain and worried about their finances1.
Michael Clarke, Head of Information Programmes at Turn2us, said the pressure on household budgets was not confined to the winter months and that the adequacy of people's finances needed to be addressed urgently by the government1. The charity said it welcomed any intervention to reduce the cost of energy bills, including a potential £200 rebate, but wanted more targeted measures for people on the lowest incomes1.
"We urge the government to reassess the accessibility of the Warm Home Discount"
Turn2us also called for a review of benefit levels, saying they should be set based on the true cost of living, and for more crisis support to be provided through local councils1. The charity's statement did not set out the level of the new cap, the date it would take effect, or which households would receive the £200 rebate it referred to; those details are not reported in its response1.
Why it matters for households
The price cap sets the maximum a supplier can charge for each unit of gas and electricity on a default tariff, so a higher cap feeds directly into what a household pays for the energy it uses. For a home trying to reduce its exposure to volatile prices, the practical levers are the same whatever the cap level: how much energy is used, how well the home retains heat, and whether the tariff in place is the cheapest available for that pattern of use. The price cap guide sets out how the limit works and what it does and does not cover, and the history of cap levels shows how each announcement has compared with the last.
The rebate Turn2us refers to is a one-off reduction rather than a change to the underlying price of energy, so it does not alter a household's longer-term position. The charity's focus on the Warm Home Discount points to a separate mechanism: a discount applied to bills for eligible households, whose reach depends on the eligibility rules in force. Households whose bills exceed the headline cap figure can find the common reasons in why a bill is higher than the cap, and the relationship between wholesale costs and retail prices is covered in wholesale prices and energy bills.
What happens next
No dated next steps are set out in the Turn2us response1. The charity's calls are for government action on the Warm Home Discount, on crisis support through local councils, and on benefit levels, with no timetable attached1.
Sources1 cited
- Turn2us responds to the energy price cap increase | Turn2us, turn2us.org.uk