Budget 2023: Energy price cap extended, government confirms, ahead of Jeremy Hunt’s first budget
The government has announced it will keep its cap on energy prices for a further three months as part of Jeremy Hunt’s first full budget.
The Energy Price Guarantee (EPG) – which limits the unit cost of gas and electricity that people pay – had been expected to rise to £3,000 next month, meaning another hike in household bills.
But just hours before the chancellor was due to deliver his statement to Parliament, the Treasury confirmed the figure would now remain at £2,500 until June, saying the typical home would save £160 on energy bills as a result.
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Hunt extends energy price cap as budget measures revealed early
Prime Minister Rishi Sunak said the extension of the EPG – which is thought will cost £3bn – would “give people some peace of mind”.
Mr Hunt added: “With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
However, the energy bills support scheme, which saw households getting around £66 taken off their bills each month, will still come to an end in March.
Labour’s shadow chief secretary to the Treasury, Pat McFadden, welcomed the announcement, saying his party had been calling for it for some time.
“I don’t mind if we lead the way as long as they do the right thing,” he told Sky News. “And I think it’s important to do that because the cost of living crisis has not gone away.
“People are really struggling to pay their bills and as things stood, those bills were scheduled to go up another £500 a year in a couple of weeks time, so I think it’s right to extend that guarantee.”
But his colleague, shadow climate secretary Ed Miliband, criticised the government for “refusing to implement a proper windfall tax to make the oil and gas giants pay their fair share”, adding: “That means they are leaving billions on the table that could be used to help families with the cost of living.”
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The SNP’s economy spokesman, Stewart Hosie, also said the policies did not go far enough, calling the chancellor “truly pathetic” for not keeping the energy bills support scheme.
“With energy companies making record profits, and the wholesale price of gas falling, there is no excuse for this shameful Tory decision, which will hammer household incomes and push even more families into poverty, hardship and debt,” he added.
And the Liberal Democrats echoed his criticism with a call for further bill cuts.
Their economic spokeswoman, Sarah Olney, said: “Instead of a sticking plaster for another three months, we need meaningful action now.”
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Treasury committee chair expects some ‘generous measures’ in budget
The move is the latest early reveal from Mr Hunt’s budget, with the chancellor expected to detail his plans in full from 12.30pm – after Prime Minister’s Questions.
Sky News also understands he will promise to provide 30 hours of childcare a week to parents of one and two-year-olds – at a cost of £4bn for the Treasury – and give a further cash injection to the sector to increase the availability of existing free childcare for three to four-year-olds.
But Labour MP Stella Creasy said the policy was “economically illiterate” as it would “stoke up demand without producing the supply“.
She told Sky News: “I welcome the fact that childcare now on the political agenda.
“But I really worry this announcement, if it’s not backed up with the money needed to actually properly fund these places and properly expand the places – bear in mind that half of local authorities tell us they don’t have the places they need at the moment to meet demand – then this government could end up crashing the childcare system just as they crashed the economy.”
Plans are also being considered to loosen staff-to-child ratios for two-year-olds, which could make the cost of childcare a little cheaper – though some in the sector have warned against it, saying it could undermine the quality of care.
Ms Creasy said: “I would love to have a conversation with the chancellor after he spent a day looking after five two-year-olds on his own all day, because I think most parents and indeed most providers wouldn’t think that was a good idea.”
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Greening: Childcare funding ‘good news’ for parents
The policies fit into what is expected to be the wider theme of the budget – encouraging people back to work.
In that vein, Mr Hunt is expected to raise the lifetime allowance for pension savings from £1m to £1.8m – a record level – and could also lift the annual tax-free allowance for pensions from £40,000 to £60,000 to incentivise professionals out of retirement.
There could also be changes to aid long-term sick, disabled people and benefit claimants to return to work.
But there could be upset from some of his own backbenchers as the chancellor is not expected to meet Tory demands for tax cuts, and will keep the planned rise in corporation tax from 19p to 25p.
However, former Conservative chancellor Lord Lamont warned against a rebellion, saying Mr Hunt had “done a good job” to “restore confidence” in the economy after Liz Truss’ disastrous mini-budget last year sent the markets into turmoil.
He told Sky News: “I think it’s very important that that is not disturbed by people being unhappy about no tax cuts today.
“I don’t think there are going to be tax cuts today. I don’t think there should be tax cuts today. I don’t think you’re going to [have] tax cuts when you have 10% inflation.
“You only deal with inflation by slowing in a controlled way. The economy dies. So it’s not the day or the time for tax cuts.”
During his speech, Mr Hunt is expected to reference the “difficult decisions” taken to stabilise the markets following the so-called mini-budget – the event that saw him brought in to reverse policies and calm the markets.
“Today, we deliver the next part of our plan: a budget for growth,” Mr Hunt will say.
“Not just growth from emerging out of a downturn. But long-term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people… all whilst making our country one of the most prosperous in the world.”
A manhunt for a second and third prisoner who were released in error has put further pressure on Justice Secretary David Lammy.
Last month Hadush Gerberslasie Kebatu, who was serving a 12-month prison sentence for sexual assault, was released in error when he should have been deported.
The Ethiopian national, who came to the UK on a small boat in the summer, spent roughly 48 hours at large before being apprehended in north London and deported.
But it emerged on Wednesday that within days of Kebatu’s mistaken release from HMP Chelmsford, HMP Wandsworth also mistakenly released prisoner Brahim Kaddour-Cherif.
The Metropolitan Police confirmed to Sky News: “Shortly after 1pm on Tuesday 4 November, the Met was informed by the Prison Service that a prisoner had been released in error from HMP Wandsworth on Wednesday 29 October.
“The prisoner is a 24-year-old Algerian man.
“Officers are carrying out urgent enquiries in an effort to locate him and return him to custody.”
The same day Surrey Police put out a public appeal to locate fraudster William Smith, 35, who was also released in error from HMP Wandsworth on 3 November. He had been sentenced to 45 months in prison that day.
Mr Lammy, who was recently appointed justice secretary, is under renewed political pressure.
Hadush Kebatu, jailed for two sexual assaults in Epping. Pic: Essex Police / PA
How many prisoners are released in error?
According to government statistics published in July, 262 prisoners were released in error in the 12 months to March 2025 – a 128% increase from 115 the previous year.
The report states: “Of the 262 releases in error, 233 of these releases in error occurred from prison establishments, while 29 were released in error at the courts.
“Releases in error from establishments could also be a result of errors by the court.”
This is out of a total prison population across England and Wales of roughly 86,000.
Sky News has contacted the HM Prison & Probation Service to know how many of the 262 prisoners have since been found and returned to custody.
In September 2024, Sky News reported how dozens of people released from jail under the government’s emergency prison scheme were freed by mistake.
The Labour government said it was forced to release hundreds of inmates early because prisons were at capacity.
William Fernandez. Pic: PA
Kebatu was due to be deported when he was mistakenly released from HMP Chelmsford.
Previous high-profile manhunts
William Fernandez, who was awaiting trial for sexual assault, was released from HMP Wormwood by error in March 2021. He then went on to rape a 16-year-old girl and sexually assault a young woman.
Joseph McCann. Pic: Police handout
In December 2019, the prisons and probation service “apologised unreservedly” after serial rapist Joseph McCann was freed to commit a series of sex attacks on women and children.
In July 2017, an inmate who was released from prison just months into a nine-year sentence due to a “clerical error” was arrested after weeks on the run.
A man who arrived on a small boat has been sent back to France for the second time in less than two months.
The Iranian man came to the UK on a small boat on 6 August and was initially sent back to France on 19 September, before returning to the UK on a small boat on 18 October.
He has been flown back again as part of the latest tranche of 19 returnees under the “one in, one out” agreement with France.
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The Iranian man told The Guardian he had been a victim of modern slavery at the hands of people smugglers in northern France.
As part of the one in, one out agreement, which came into play in August, 94 migrants who came to the UK illegally on small boats have now been removed.
In return, a total of 57 approved asylum seekers have been brought to the UK.
The man came to the UK twice on a small boat. File pic
Although the UK has sent back more migrants than it has accepted, the two countries have committed to exchange an equal number of people in each direction.
The end of October saw more migrants having crossed the Channel in 2025 than the entirety of 2024.
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Manhunt after foreign prisoner mistakenly released from prison
Home Secretary Shabana Mahmood said: “Anyone looking to return to the UK after being removed under the UK-France agreement is wasting their time and money.
“This individual was detected by biometrics and detained instantly. His case was expedited, and now he has been removed again.
“My message is clear: if you try to return to the UK you will be sent back. I will do whatever it takes to scale up removals of illegal migrants and secure our borders.”
Fire crews have been tackling a major incident after flooding hit parts of southwest Wales overnight, with people trapped in their homes and vehicles.
Joint Fire Control (JFC), which includes South Wales Fire and Rescue Service, received more than 450 calls within a 12-hour period, mainly in Carmarthenshire, according to Mid and West Wales Fire and Rescue Service (MAWWFRS).
Forty-eight people were rescued from a care home, more than 40 people were helped to safety from flooded homes, three people were rescued from a vehicle trapped in fast-flowing water, and more than 30 dogs were saved from flood-affected kennels at a shelter.
A major incident was declared after flooding at a retirement complex in Whitland in the early hours of Wednesday. At 1.35am, crews were deployed to rescue 48 people using “rescue sleds and water rescue equipment,” MAWWFRS said in a statement.
Pic: MAWWFRS
Three people were trapped in a vehicle in fast-flowing water. Pic: MAWWFRS
Earlier on Tuesday, in the remote village of Ffarmers, fire teams rescued three people and their two dogs who were stuck in a vehicle situated in fast-flowing water.
Fire chiefs said crews used extension ladders to reach the vehicle.
Two further incidents on Tuesday evening involved people being rescued from flooded properties in Ferryside.
Around 42 more people were rescued in nearby St Clears, where about 20 domestic and commercial properties were flooded.
Flood warnings and alerts have been in force across Wales. Pic: Natural Resources Wales
Later the same evening, crews were involved in an operation at Glanrhyd Dog Sanctuary, Kidwelly. Boats were used to evacuated dogs from a shelter which was ruined in the floods.
Owner Alison Clark told Sky News she was “broken beyond belief”.
Crews transported animals from Glanrhyd Dog Sanctuary, Kidwelly, to safety. Pic: MAWWFRS
All the dogs were rescued. Pic: MAWWFRS
“It’s devastating. Everything ruined or lost in the current. All white goods… freezers etc along with dog food, bedding and leads etc.
“We spent 80k on this move to make the sanctuary one of the best and now it is ruined.
“I’m broken beyond belief. My only saving grace is that I kept every dog alive.”
Among the rivers placed on flood warning – where flooding is expected – were the River Towy around Camarthen and between Llandeilo and Abergwili, the River Ritec at Tenby, the River Cynin at St Clears, the River Taf at Whitland and the River Teifi at Llechryd and Cenarth.
Carmarthenshire County Council said a rest centre has been set up in Carmarthen Leisure Centre for those suffering the “severe impact” of flooding in the Whitland and St Clears areas.
Seven schools were closed on Wednesday in the county and the council also confirmed multiple road closures were in place due to flooding or road conditions.
Read more from Sky News:
Manhunt for prisoner wrongly released
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Craig Flannery, Assistant Chief Fire Officer at MAWWFRS, said the rescues were “prolonged and challenging”.
“I have personally witnessed the dedication and professionalism of our staff dealing with multiple calls over a prolonged period, as well as the courageous efforts of our operational crews responding to these incidents across our Service area,” he said.
“Our crews have been truly exceptional in assisting and protecting our communities.
“We are also extremely grateful to all partner agencies who have assisted in responding to incidents during a prolonged and challenging period.”
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