As the £400 per household to help with home energy bills comes to an end, Jeremy Hunt said the government would still be giving support with rising energy costs.

The Chancellor said in his first budget the Energy Price Guarantee would stay at £2500, for the average household for another three months.

The cap was due to rise by 20% to £3000 at the end of March.

READ MORE: Budget: Chancellor sets out major reforms to Universal Credit

Bills will rise for every home as the Energy Bill Support Scheme, introduced by Rishi Sunak, when he was chancellor, which gave everyone £67 a month off their bills for six months over the winter, ends this month.

In announcing the energy cap saying at the same level, he said he had listened to the advice of ‘money-saving expert’ Martin Lewis, who said it would cause hardship for many people struggling with the cost of living.

He also made changes for people who use a pre-payment meter, who pay a higher tariff than those on direct debit or quarterly bills.

Mr Hunt said pre-payment meter charges will now be brought in line with comparable customers on direct debit deals.

Glasgow Times: Health minister Jeremy Hunt during his visit to Hellesdon Hospital. Picture: DENISE BRADLEY

There are around four million people in the UK on prepayment meters

The Chancellor said: “Taken together with all the government’s efforts to help households with higher costs, these measures bring the total support to an average of £3300 per UK household over 2022-23 and 2023-24.”

He added: “Even though wholesale energy prices are falling there is still pressure on families.

“After listening to Martin Lewis and other experts, the energy price guarantee cap will remain in place.”

Mr Lewis responded to the announcement in the budget.

He said: "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."