Household energy bills to rise by more than 3% from July

Typical household energy bills in Britain had been due to rise to 3,000 a year from April, but they will be kept at 2,500 until the end of June.

With the 400 discount coming to an end, many had warned that this would cause hardship on families already struggling with the cost of living, and it was due to be scaled back from 1 April.

Cornwall Insight believes that the Energy Price Cap, set by the energy regulator Ofgem and which limits what suppliers can charge consumers per unit of energy, will fall to 2,100 a year for a typical household from July.

The Treasury said help for around eight million low-income and vulnerable households will continue, with families getting at least 900 in cash payments over the next year.

There are questions about the decision to extend the Energy Price Guarantee. It is universal help, in other words, everyone gets it, regardless of how big an issue energy bills are in their home.

Critics say that the extra 3 billion dollars it will cost would be better spent if targeted at those who really need it.

Simon Virley, who leads its UK energy practice, said it can't just be another three months where we wait and see what happens to wholesale prices.