The UK Government confirmed on 8 September 2022 that average gas and electricity bills across Great Britain will be frozen at £2,500 a year, according to the fuel poverty charity National Energy Action (NEA)1. The figure is over £500 higher on average than current bills and replaces the predicted £3,549 average a year1.
Under the arrangement, customers will still receive the £400 rebate off domestic electricity bills announced by the previous Chancellor, and a new UK fund will support heating oil customers1. NEA said more than 24 million households will face lower bills this winter, and that the freeze could help stop over 2 million households from being plunged into fuel poverty1.
"Just over 12 months ago the average annual bill was just £1,271. Even with this price freeze the average bill has doubled in a year. Last year 4.5 million UK households were fuel poor, now we predict that it will be 6.7 million, far better than the 8.9 million without support, but still more needs to be done."
The charity said bills will still be unaffordable for millions this winter despite the scale of the intervention1. It singled out households in Northern Ireland, which it said are outside the GB energy market and its price cap, as needing measures that work for them1. It also said the most vulnerable need targeted support, naming those who use more energy because of medical conditions, the elderly, those on very low incomes and prepayment meter customers, who it said would benefit from a lower rate or additional relief from standing charges1.
| Measure | Detail |
|---|---|
| Average annual bill under the freeze | £2,500 |
| Predicted average without the freeze | £3,549 |
| Average annual bill just over 12 months earlier | £1,271 |
| Households facing lower bills this winter | More than 24 million |
| Households predicted fuel poor | 6.7 million (8.9 million without support) |
Why it matters for households
The freeze caps the average energy bill at £2,500 rather than letting it rise to £3,549, so the gap between what a household would have paid and what it will pay is around £1,000 on average1. The £400 electricity rebate sits on top of that, and heating oil customers, who are not covered by the gas and electricity price cap, are addressed through a separate fund1. For a home's energy independence, the practical effect is that the cost of running heating, hot water and appliances is held at roughly double its level of a year earlier rather than rising further1. The support is confirmed for Great Britain; Northern Ireland, which NEA notes sits outside the GB energy market and its price cap, is treated separately1. The £400 rebate and the Energy Price Guarantee are the mechanisms through which the support reaches households.
What happens next
NEA said the new Government must not forget the most vulnerable and called for longer term investment in energy efficiency, which it said saves consumers money, creates jobs, provides an economic return to the Treasury and reduces strain and costs for health services1. No further dated steps were reported1.