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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.

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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.”

Read more:
What to look out for in Hunt’s first budget

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.”

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Everyone in UK ‘must step up’ to deter Russian threat of wider war, armed forces chief to warn

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Everyone in UK 'must step up' to deter Russian threat of wider war, armed forces chief to warn

The whole of the UK – not just its armed forces – needs to step up to deter the threat posed by Russia of a wider war in Europe, Britain’s military chief will say.

In the kind of nation-wide call to action that has not been heard since the height of the Cold War, Air Chief Marshal Sir Richard Knighton will use a speech in London on Monday evening to urge the British public to make defence and resilience “a higher priority”.

He will say Russia’s war in Ukraine shows that Vladimir Putin’s willingness to target his neighbours “threatens the whole of NATO, including the UK. The Russian leadership has made clear that it wishes to challenge, limit, divide and ultimately destroy NATO”.

Yet there was nothing in excerpts of the speech – released in advance by the Ministry of Defence – that pointed to any push by Sir Keir Starmer’s government to increase defence spending faster than planned, despite the flashing warning signs and concerns among senior military officers that the budget is currently set to grow too slowly.

In a further articulation of the threat, Blaise Metreweli, the new head of MI6, will use a separate speech on Monday to warn that the “front line is everywhere” in a new “age of uncertainty”.

“The export of chaos is a feature not a bug in the Russian approach to international engagement,” she will say, in her first public comments since becoming the first female chief of the Secret Intelligence Service in October.

“We should be ready for this to continue until Putin is forced to change his calculus.”

More on Mi6

Read more:
Head of MI6: ‘Never seen the world in a more dangerous state’
NATO chief calls for 400% increase in air and missile defence

Defence and security chiefs across the NATO alliance are increasingly sounding the alarm about the potential for Russia’s war in Ukraine to ignite a much wider conflict.

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NATO ‘must prepare for scale of war our grandparents faced’, warns chief Mark Rutte

Mark Rutte, the head of NATO, last week said Europe must ready itself for a confrontation with Russia on the kind of scale “our grandparents and great-grandparents endured” – a reference to the First and Second World Wars.

At the same time, Al Carns, the UK’s armed forces minister, said Britain is “rapidly developing” plans to ready the entire country for the possible outbreak of war.

Sky News revealed last year that the UK had no national plan for the defence of the country or the mobilisation of its people.

By contrast, a detailed blueprint for the transition from a state of peace to one of war existed throughout the Cold War, setting out not just what the armed forces, emergency services and local governments had to do in the event of conflict, but also wider society, including people working in industry, schools and public transport.

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‘New era’ of threats from Russia, China and Iran

However, this Government War Book was quietly shelved after the Soviet Union collapsed and successive governments took a so-called “peace dividend”, shifting investment out of defence and into other priorities such as health and welfare.

Sky News and Tortoise have documented the hollowing out of the UK’s armed forces and wider national resilience in a podcast series called The Wargame.

The expected comments by Air Chief Marshal Knighton in an annual lecture at the Royal United Services Institute (RUSI) appear to signal an attempt by the government to put the country back on more of a war footing in the face of rising threats.

But military insiders have warned that a timeline set out by the government of 10 years to boost defence spending to 3.5% of GDP from 2.3% is far too slow.

👉 Click here to listen to The Wargame on your podcast app 👈

The chief of the defence staff will say: “The situation is more dangerous than I have known during my career and the response requires more than simply strengthening our armed forces. A new era for defence doesn’t just mean our military and government stepping up – as we are – it means our whole nation stepping up.”

He will nod to the planned uplift in spending, noting “the price of peace is increasing”.

He is set to say: “The war in Ukraine shows that Putin’s willingness to target neighbouring states, including their civilian populations, potentially with such novel and destructive weapons, threatens the whole of NATO, including the UK.”

This is a threat that wider society needs to prepare for as well as the military.

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Military analyst Sean Bell looks at the threat Russia poses

“Our armed forces always need to be ready to fight and win – that’s why readiness is such a priority,” Air Chief Marshal Knighton will say.

“But deterrence is also about our resilience to these threats, it’s about how we harness all our national power, from universities, to industry, the rail network to the NHS. It’s about our defence and resilience being a higher national priority for all of us. An ‘all-in’ mentality.”

It is a highly unusual intervention that has echoes of the Cold War when the UK last involved all of society in a programme of national defence and resilience against the threat of World War Three and potential nuclear Armageddon posed by the then Soviet Union.

“We are heading into uncertainty, and that uncertainty is becoming more profound, both as our adversaries become more capable and unpredictable, and as unprecedented technology change manifests itself,” Air Chief Marshal Knighton will say.

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Specialist teams and online investigators deployed across England and Wales to tackle ‘national emergency’ of violence against women and girls

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Specialist teams and online investigators deployed across England and Wales to tackle 'national emergency' of violence against women and girls

Specialist investigation teams for rape and sexual offences are to be created across England and Wales as the Home Secretary declares violence against women and girls a “national emergency”.

Shabana Mahmood said the dedicated units will be in place across every force by 2029 as part of Labour’s violence against women and girls (VAWG) strategy due to be launched later this week.

The use of Domestic Abuse Protection Orders (DAPOs), which had been trialled in several areas, will also be rolled out across England and Wales. They are designed to target abusers by imposing curfews, electronic tags and exclusion zones.

The orders cover all forms of domestic abuse, including economic abuse, coercive and controlling behaviour, stalking and ‘honour’-based abuse. Breaching the terms can carry a prison term of up to 5 years.

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Govt ‘thinking again’ on abuse strategy

Nearly £2m will also be spent funding a network of officers to target offenders operating within the online space.

Teams will use covert and intelligence techniques to tackle violence against women and girls via apps and websites.

A similar undercover network funded by the Home Office to examine child sexual abuse has arrested over 1,700 perpetrators.

More on Domestic Abuse

Abuse is ‘national emergency’

Home Secretary Shabana Mahmood said in a statement: “This government has declared violence against women and girls a national emergency.

“For too long, these crimes have been considered a fact of life. That’s not good enough. We will halve it in a decade.

“Today we announce a range of measures to bear down on abusers, stopping them in their tracks. Rapists, sex offenders and abusers will have nowhere to hide.”

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Angiolini Inquiry: Recommendations are ‘not difficult’

The target to halve violence against women and girls in a decade is a Labour manifesto pledge.

The government said the measures build on existing policy, including facial recognition technology to identify offenders, improving protections for stalking victims, making strangulation a criminal offence and establishing domestic abuse specialists in 999 control rooms.

Read more from Sky News:
Demands for violence and abuse reforms
Women still feel unsafe on streets
Minister ‘clarifies’ violence strategy

Labour has ‘failed women’

But the Conservatives said Labour had “failed women” and “broken its promises” by delaying the publication of the violence against women and girls strategy.

Shadow Home Secretary, Chris Philp, said that Labour “shrinks from uncomfortable truths, voting against tougher sentences and presiding over falling sex-offender convictions. At every turn, Labour has failed women.”

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UK has seen longest period without migrants arriving on small boats since 2018, figures show

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UK has seen longest period without migrants arriving on small boats since 2018, figures show

There have been no migrant arrivals in small boats crossing the Channel for 28 days, according to Home Office figures.

The last recorded arrivals were on 14 November, making it the longest uninterrupted run since autumn 2018 after no reported arrivals on Friday.

However, a number of Border Force vessels were active in the English Channel on Saturday morning, indicating that there may be arrivals today.

So far, 39,292 people have crossed to the UK aboard small boats this year – already more than any other year except 2022.

The record that year was set at 45,774 arrivals.

It comes as the government has stepped up efforts in recent months to deter people from risking their lives crossing the Channel – but measures are not expected to have an impact until next year.

Debris of a small boat used by people thought to be migrants to cross the Channel lays amongst the sand dunes in Gravelines, France. Pic: PA
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Debris of a small boat used by people thought to be migrants to cross the Channel lays amongst the sand dunes in Gravelines, France. Pic: PA

December is normally one of the quietest for Channel crossings, with a combination of poor visibility, low temperatures, less daylight and stormy weather making the perilous journey more difficult.

The most arrivals recorded in the month of December is 3,254, in 2024.

Deputy Prime Minister David Lammy met with ministers from other European countries this week as discussions over possible reform to the European Convention on Human Rights (ECHR) continue.

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France agrees to start intercepting small boats

The issue of small boat arrivals – a very small percentage of overall UK immigration – has become a salient issue in British politics in recent years.

Last month, French maritime police announced they would soon be able to intercept boats in the English Channel.

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