Energy bills 'nightmare' looms closer for Brits as Tories fired Budget warning

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Bills are set to rise sharply when the scheme ends (Image: Getty Images/iStockphoto)
Bills are set to rise sharply when the scheme ends (Image: Getty Images/iStockphoto)

Campaigners are urging Jeremy Hunt to use Wednesday’s Budget to end the “energy nightmare” for families in the cost-of-living crisis.

The Chancellor is tipped to extend the Energy Price Guarantee, limiting average annual bills to £2,500.

But the Energy Bills Support Scheme – worth £66 a month per household, or £400 over six months – which came into force in October is due to end in April.

National Energy Action’s Peter Smith, said: “The energy crisis could be made far worse for millions of households.

“Despite energy wholesale prices falling, electricity and gas bills have never been higher and could rise further – just as vital support is removed.”

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Age UK charity director, Caroline Abrahams, said: “Older people on low and modest incomes are facing the bleakest of realities. Soaring energy bills have forced some to make decisions that could jeopardise their health.”

Energy bills 'nightmare' looms closer for Brits as Tories fired Budget warningJeremy Hunt is set to announce key energy bills details in his Budget this week (PA)

Silver Voices’ Dennis Reed said: “I hope the Chancellor thinks of the thousands of older people shivering under blankets because they can’t afford to switch on their heating.”

Pressure is building on the Government to use billions of pounds built up in extra tax revenues and less spending on existing energy bills schemes to ease households’ plight.

Analysts believe the Treasury could be sitting on up to £30billion. But Lib Dem Treasury spokeswoman Sarah Olney said: “With no commitment to cut energy bills, Jeremy Hunt ’s Budget looks set to be more hot air.”

Faith leaders called for more help with energy bills and a “moral re-evaluation” of the tax system.

In an open letter to Prime Minister Rishi Sunak, 41 clerics, inc-luding ex-Archbishop of Canterbury Rowan Williams, called for “a more compassionate response to this crisis”.

Energy bills 'nightmare' looms closer for Brits as Tories fired Budget warningThe Tories are being urged to 'end the nightmare' for families (Getty Images)

The Chancellor has outlined plans to get retired over-50s back into work, and encourage the long-term sick and disabled, and benefits claimants, into jobs.

They include the axing of the system used to assess eligibility for sickness benefits, paying parents on Universal Credit childcare support upfront and increasing the amount they can claim.

Mr Hunt said: “We need to break down the barriers that stop people here in the UK from working.”

Mr Hunt is also set to resist calls from Tory backbenchers to halt a planned rise in corporation tax from 19% to 25%.

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Flying to California last night, for Aukus military pact talks, Mr Sunak defended the hike, saying: “Corporation tax is still the lowest in the G7.”

Graham Hiscott

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