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SBH Scotland support Martin Lewis's Campaign for Energy Price Guarantee to stay at £2,500 a year for further three months

The Government has heeded calls from Martin Lewis to postpone the planned 20% energy bill rise – after a letter from Martin to the Chancellor was supported by more than 130 charities and consumer organisations including Spina Bifida Hydrocephalus Scotland.

The news was confirmed this morning, ahead of the Chancellor’s spring budget at lunchtime.

If you are a member of SBH Scotland and have any financial enquiries or issues, please get in touch. We have a Financial Support Service to help you. Email or call us on 03455 211 8300.

Martin Lewis, founder of MoneySavingExpert, said: "A month ago, I wrote to the Chancellor asking him to postpone the 20% rise in the Energy Price Guarantee. That letter was supported by 131 major charities including Which?, National Energy Action, Citizens Advice, Alzheimer’s Society and more – plus Energy UK, the energy industry trade body. I’d like to thank the Chancellor for listening. The rise – which would likely only have lasted three months – would have caused disproportionate harm financially and, with more 'price rise' letters, to people’s mental health.

"Of course, this doesn’t mean bills will get cheaper. In April we see the end of the winter energy support – the £66/£67 a month everyone has received to lower their bills. So in practical terms people are still going to pay more than they have been, but at least some of the planned rise has been forestalled. Now we have to hope that the current predictions come true, that from July, the current wholesale prices will mean the price cap drops, and therefore bills fall by 19% – a welcome relief to millions."

What does this mean? The EPG, which is effectively a subsidy from the state, was due to increase to a typical £3,000 a year from 1 April, but falling wholesale prices has meant that the Energy Price Guarantee (EPG) will cost billions less than the Government had originally set aside. On current forecasts, it should be replaced by a lower energy price cap, set by the regulator, after June.

In February, Martin wrote to the Chancellor Jeremy Hunt MP, urging him to continue energy bills support at current levels by postponing the planned rise in the EPG. Today’s announcement means it will now keep protecting consumers at a typical £2,500 a year for a further three months until the end of June.

The full story can be found at the MoneySavingExpert website.

If you are a member of SBH Scotland and have any financial enquiries or issues, please get in touch. We have a Financial Support Service to help you. Email or call us on 03455 211 8300.