To ask His Majesty's Government what estimate they have made of the financial impact on the public sector in 2022/23 as a result of the increasing prices of (1) fuel, and (2) energy.
Answered on
14 December 2022
The independent Office for Budget Responsibility (OBR) recently published its Economic and Fiscal Outlook, which accounted for the impact of increases in oil and gas prices on the public finances.
Higher energy prices principally affect the fiscal outlook via implications for spending, with the Energy Price Guarantee and Energy Bill Relief Scheme (EBRS) forecast to cost £43.2bn in 2022-23. The public sector is benefiting from universal support for energy costs this winter as part of the EBRS which provides a discount on wholesale gas and electricity prices for all non-domestic energy consumers, including the voluntary and public sectors.
Public sector organisations will not be eligible for this support after March 2023. A review is currently underway to determine support after the initial six-month EBRS scheme, which will be targeted at those most affected to ensure fiscal sustainability and value for money for the taxpayer.