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The energy price cap will stay for an extra three months, the UK Government has announced.

The cap will remain in place during April, May and June, with the UK Government saying it will save a typical household £160.

The cap reduces a household’s average annual energy bill to £2,500.

The announcement comes as part of the government’s Spring Budget, which is set to include cost-of-living support such as help with childcare costs, as well as ending the pre-payment meter premium.

The government has said its support since October has stopped the average household energy bill hitting £4,279 a year.

From April 1, Ofgem’s energy price cap will rise to a figure which would see average household energy bills at £3,280 a year.

However, households will not have to pay this rate during April, May and June because of the government support. Without this intervention, households would have to pay the full Ofgem price cap.

Chancellor Jeremy Hunt said: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the Energy Price Guarantee at its current level.

“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 government announcement has been criticised by Wales’ Finance Minister Rebecca Evans, who said it has “fallen short of providing meaningful support”.

Ms Evans said: “There were sticking plasters when we needed significant action. Potholes and petrol took precedence over pay rises for teachers and NHS staff.”