Jeremy Hunt, the Chancellor, delivered the Spring Budget on Wednesday 15 March, extending the Energy Price Guarantee at its current level for a further three months1. The Budget also ended the one-off winter support payment, removed the prepayment meter penalty from four million households, provided £63 million of additional funding for Returnships, and reclassified nuclear as a sustainable energy option1.
The Chartered Institute of Plumbing and Heating Engineering (CIPHE) said the continuing support for energy bills was a relief to many worried about slipping further into fuel poverty1. Its chief executive, Kevin Wellman, said almost 2.5 million households in England fell into fuel poverty in the previous twelve months, by the government's own figures, and that March still saw the end of the one-off winter support payment1. He added that no progress had been made in bringing households to a minimum energy efficiency rating of C1.
"As an educational charity dedicated to how the plumbing and heating industry protects consumers, including the most vulnerable people in society, we are pleased to see that the prepayment meter penalty will be removed from four million households. This is a positive step, but our main concern remains for those who continue to face the very real, and terrible threat of being unable to heat their homes."
The £63 million for Returnships is aimed at encouraging workers over 50, those with children, and those with disabilities and long-term sickness back into work1. Wellman questioned who over 50 could commit to the Plumbing and Domestic Heating Technician apprenticeship, which takes up to four years to complete, and said further government assistance may be needed to bolster the industry1. On nuclear, he said a longer-term approach is required and that there is no quick fix or one stop solution regarding achieving Net Zero1.
| Measure | Detail |
|---|---|
| Energy Price Guarantee | Extended at current levels for three months1 |
| Winter support payment | Ended in March1 |
| Prepayment meter penalty | Removed from four million households1 |
| Returnships | £63 million additional funding1 |
| Nuclear | Reclassified as sustainable1 |
Why it matters for households
The three-month extension kept the Energy Price Guarantee in place over the spring, but the end of the winter support payment removed a separate one-off payment at the same time1. For households on prepayment meters, the removal of the penalty changed the standing charge or unit rate gap between prepayment and other payment methods, which affects the cost of repaying energy debt through a prepayment meter and the risk of self-disconnection when credit runs out. The Budget did not set out new funding for energy efficiency upgrades, and CIPHE said no progress had been made on bringing homes to EPC C1. The nuclear reclassification concerns generation and investment rather than household bills directly, and no household-level effect was reported1.
What happens next
The Energy Price Guarantee extension runs for three months from April 20231. CIPHE said it would monitor how wider energy and infrastructure investment affects the delivery of plumbing and heating services, and called for future withdrawal of support to be targeted at those on low incomes or living with health and age concerns1. No further dates were reported1.
Sources1 cited
- Spring Budget 2023: CIPHE Responds, ciphe.org.uk