Martin Lewis predicts that the average energy bill will rise 73 percent in April

New Chancellor Jeremy Hunt has slashed support for household energy bills and scrapped tax cuts promised by his predecessor Kwasi Kwarteng as he seeks to restore stability after weeks of financial turmoil.

In an emergency statement, Mr Hunt said the energy price guarantee – which had been due to the price cap for two years – will end in April. After that, the government will try to provide targeted aid to those most in need.

The consumer champion and Money Saving Expert The founder shared a series of tweets to warn his followers of what could be in store for them in April.

He said: “The projected new energy price cap, starting in April when the price guarantee ends, will rise by 73% given a typical use bill (use more, pay more, use less, pay less) of £2,500 per year increases to £4,350. The cap will then be reduced by 15% in July to £3,700 per year based on typical use.”

Martin’s prediction was based on the assumption that the price cap system will return in April. A Treasury review will determine exactly who is eligible for further assistance.

Martin added: “If these [figures] are of the right magnitude, the promised “targeted aid” must be targeted down to the middle income bracket for people to survive. Especially if it stays at this level for next winter.

“This is subject to the price cap continuing in its old form, which is the usual working assumption but has not yet been confirmed.”

In response, one follower asked, “How do you expect people to pay that amount? Some of us retirees would be better off dead than spending our retirement years in extreme stress and massive debt. I’m at my wits end now.”

Another added: “I have to reschedule next year, if that happens my family will lose everything.”

The dividend tax cut promised by Jeremy Hunt’s predecessor will disappear, as will VAT-free shopping for overseas tourists, the alcohol tax freeze and the relaxation of IR35 rules for the self-employed.

Mr Hunt said the tax measures alone will bring in £32billion after economists estimated the government faces a £60billion black hole in public finances.

In a television statement, the chancellor, who only took office on Friday, warned against further “tough” decisions.

“Governments cannot eliminate volatility in markets, but they can do their part and we will do that,” he said. Martin Lewis predicts that the average energy bill will rise 73 percent in April

Fry Electronics Team

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