UK households face higher energy bills

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UK households face higher energy bills

Interest payments fell because of changes in the inflation rate that determines how much interest the government has to pay on its debts.

The government announced last week that it would extend support for energy bills at current levels until the end of June.

Average bills will be kept at 2,500 until the end of June, when they are expected to drop to around 2,200 a year due to falling wholesale gas prices.

The government was spending about 1,500 per household to pay just over half of the energy bills this winter, according to the ONS. The extra spending on energy subsidies was estimated to be around 9.3 billion dollars in February 2023, compared with a year earlier in the year.

Despite record borrowing in February, the ONS said 1 billion dollars were raised through the new windfall tax on UK energy company profits. The tax income was 5 bn higher than a year ago, at 77.8 bn.

With self-assessed tax receipts at their highest level since 1999, Capital Economics said the UK economy was perhaps becoming more tax-rich Ruth Gregory, its deputy chief UK economist, warned there was a big risk that the recent turmoil in the banking sector deepens and the recent improvement in the public finances is blown away by the chancellor in January and February.