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Living wage payments for the poorest households will not be updated in the Budget as energy prices are expected to fall to their lowest levels in more than two years.
Treasurer Jeremy Hunt will continue financial support for low-income households when he unveils his Budget next month, Treasury officials said, as energy price caps are set to fall by more than 12% in April. He said he plans not to do so.
Anti-poverty activists warn that without sustained government action, households will continue to face a fuel crisis every winter.
This means this month’s subsistence payment, worth around £300, will be the last payment to households and will be paid two months before energy prices are expected to fall.
The Treasury was quick to highlight the range of measures the government is introducing to support households, including reducing national insurance contributions, increasing local housing benefit, freezing fuel duty and increasing working age allowances by 10%. . universal trust.
However, the decision not to renew the cost-of-living payment will raise concerns among campaign groups who have warned that many households will continue to suffer from high prices.
Inflation has more than halved compared to this time last year, but at 4% it is still twice the Bank of England’s target.
Ofgem announced on Friday morning that energy prices fell 12.3% in April, bringing bills to their lowest level since before Russia’s invasion of Ukraine began.
Dame Clare Moriarty, chief executive of Citizens Advice, said the fall in energy prices was welcome, but the government needed to do more to help the poorest households meet high bills. .
“The government has committed to a new energy tariff support scheme by April 2024, but it will miss its own deadline,” Mr Moriarty said. “And the suspension of subsistence payments this spring will make it even more difficult for many who are already struggling to make ends meet. Without action, people will face a crisis every winter. It will be.”
Her comments were echoed by Simon Francis, coordinator of the Coalition to End Fuel Poverty, who warned that energy prices would still be 60 per cent higher than before the energy crisis began and called for more urgent support for the poorest households. Ta.
“We can all see what is happening with Britain’s broken energy system and it is time for politicians to come together and enact the necessary measures to end poverty,” he said. Ta.
“This includes a long-term plan to help all households upgrade their homes and a bipartisan agreement on short-term financial support for those most in need.”
Ed Miliband, the shadow energy secretary, added: “While we welcome the reduction in the price cap, the truth is that energy bills remain too high for hard-working families.”