Energy bill help drives UK borrowing to February record

Energy support schemes for households pushed government borrowing in February to its highest level for the month since records began in 1993.

Borrowing, the difference between spending and tax income, was £16.7bn, last month, the Office for National Statistics (ONS) said.

The ONS said this was largely due to spending on energy schemes this year.

However, the interest paid on government debt was £6.9bn in February - £1.3bn less than a year earlier.

The amount borrowed exceeded economists' expectations and followed a surprise surplus in the public finances in January.

Chancellor Jeremy Hunt said borrowing was "still high" was because the government was supporting households with the rising cost of living.

The government announced last week that it would extend support for energy bills at current levels until July.

The move came as typical household energy bills in Britain had been due to rise to £3,000 a year from April.

Now average bills will be kept at £2,500 until the end of June, when they are expected to drop to around £2,200 a year due to falling wholesale gas prices.

However, the government's £400 winter fuel payment will not be renewed, meaning households' costs will still rise in the short term.

Mr Hunt said the government was "spending about £1,500 per household to pay just under half of people's energy bills this winter".