Healey faces calls for budget support as household energy bills climb

Energy bills for millions of households in Great Britain rose by 4% from Thursday, taking the average annual bill for a typical home to £1,723. The increase has intensified calls for Chancellor John Healey to provide more help in next month’s budget, as higher fuel costs and global energy prices threaten to deepen the cost of living crisis.

Ofgem’s price cap is at its highest level in three years, and Cornwall Insight forecasts a further 16% rise in January, to £1,999 a year for a typical dual-fuel home. Campaigners and trade unions want universal support alongside targeted help, while the Treasury faces pressure to extend a VAT cut and move some clean energy charges from bills to general taxation. That shift could save households about £120 a year but may require up to £3bn in tax rises; Healey has warned that public finances leave limited room for action.