The UK energy price cap has been set at £3,549 a year in a sharp rise, government regulator Ofgem announced on Friday morning. Millions of UK households are bracing for a worsening cost of living crisis today after the UK energy regulator announced a new price cap. Another major rise in the cap was expected, with analysts predicting it could be set at between £3,550 and £3,600 by Ofgem for the average household for early October, compared with £1,971 today. Experts warn that price growth will only soar as time goes on, with the price cap expected to peak at £6,823 by next April. Continued increases are expected to push many households into fuel poverty this winter. As a result, the government is facing growing calls to introduce further support to help households weather the crisis. Rising energy bills will be a critical issue for the next prime minister once the Tory leadership contest is over in September.
Basic points
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Liz Truss pledges ‘decisive action’ on rising energy bills – but no extra payments
Liz Truss has pledged “immediate support” to ease the sting of spiraling energy bills as the Tory leadership contest enters its final stretch. The Foreign Secretary acknowledged the strain is “sheer” on the coffers and the petrol pump, but insisted Britain will “get through these difficult times” – pledging to ensure help is “on the way”. The two finalists in the No 10 race have repeatedly come under fire for their economic policies, with Rishi Sunak warning his rival’s tax cut plans risk fueling inflation, while she has insisted it is key to tackling cost of living crisis.
Truss pledges “immediate support” to combat rising energy bills
The Secretary of State acknowledges that the pressure is “clear” at the till and at the petrol pump Maryam Zakir-Hussain 26 August 2022 08:05 1661496640
Ofgem says the next Prime Minister must “take further action” on the accounts
Jonathan Brearley, chief executive of Ofgem, said either Liz Truss or Rishi Sunak “will need to act further” to support households after the 80% price cap increase was announced. “The government’s support package is providing help at the moment, but it is clear that the new prime minister will need to act further to deal with the impact of the price rises coming in October and next year,” he said. “We are working with ministers, consumer groups and industry on a range of options for the incoming prime minister that will require urgent action. The response should match the scale of the crisis before us.” (PA) Maryam Zakir-Hussain 26 August 2022 07:50 1661495872
Chancellor ‘develops options’ for further support
Chancellor Nadhim Zahawi said he was working “steadily” to help families cope with rising energy prices – but offered no new support. “I know the announcement of the energy price cap this morning will cause stress and anxiety for many people, but help is coming with a £400 discount on everyone’s energy bills, the second installment payment of £650 for vulnerable households and £300 for everyone pensioners,” he said. “While Putin is raising energy prices in retaliation for our support of Ukraine’s brave struggle for freedom, I am working steadily to develop options for further support. This will mean the incoming Prime Minister can hit the ground running and provide support to those who need it most, as soon as possible.” Maryam Zakir-Hussain26 August 2022 07:37 1661494648
UPDATE – Ofgem confirms energy price cap to rise to £3,549 from October
The UK energy regulator has set the new price cap at £3,549 from October. The energy price cap is the maximum amount gas suppliers can charge customers per unit of energy. Ofgem decides the price cap by observing what wholesale energy prices do over several months. It then multiplies that price per unit by the number of units of gas and electricity an average household uses in a year.
Ofgem confirms energy price cap to rise to £3,549 from October
The UK energy regulator has set the new price cap at £3,549 from October. Maryam Zakir-Hussain26 August 2022 07:17 1661494384
Energy price hike ‘a dagger in the hearts of millions’, campaigners say
The End Fuel Poverty Coalition – a group of 60 charities and unions – said the increase in the price cap was like a “dagger in the hearts of millions of people up and down the country”. Simon Francis, co-ordinator of the coalition, warned: “Parents will be unable to feed their children, the sick and elderly will be condemned to deteriorating health, disabled people will be left without vital medical equipment and households will be forced into poverty for the first time in generations.” Calling for emergency support, he added: “All the solutions are at the door of the Westminster Government, yet they are silent in the face of this looming disaster.” Arpan Rai26 August 2022 07:13 1661493852
IMPORTANT: The energy price cap has been set at £3,549 per year
The UK energy price cap has been set at £3,549 a year in a sharp rise, government regulator Ofgem announced on Friday morning. The latest price cap will start from October 1 and last for three months.
Ofgem confirms energy price cap to rise to £3549 from October
The UK energy regulator has set the new price cap at £3,549 from October. Arpan Rai26 August 2022 07:04 1661493104
How to heat your home cheaply this winter
Ofgem is set to announce its latest review of the energy price cap in a few minutes from now, with the maximum amount that utility providers can charge customers on standard UK tariffs expected to reach £3,600 annually. Understandably though, millions of people across Britain will already be looking at what else they can do to strengthen their homes this winter, to stay warm without racking up extortionate bills. From insulation to waterproofing to thermal curtains, here are some tips to consider:
How to heat your home cheaply this winter
The energy price cap will shoot up again as the cost of living crisis deepens Arpan Rai 26 August 2022 06:51 1661491824
Rising energy prices: How management is responding
Officials said they were setting aside a £37bn support package to help millions of Britons with rising living costs expected to rise further from October after the energy price cap was announced this morning. All households will get £400 off their energy bills this winter and millions of people on low incomes will get a further £650 cut, officials said. However, people see these moves as insufficient in proportion to the rising cost of living. However, millions will have to wait until September amid a leadership change in No 10 as the Conservatives wait to announce who they have chosen as their new leader. But neither Liz Truss nor Rishi Sunak, the two politicians vying to become the next prime minister, appear to be backing plans to significantly increase financial support for people and freeze the energy price cap. Arpan Rai26 August 2022 06:30 1661489761
How steep the energy price cap is expected to rise
Expected to be announced in the next few hours, the revised price cap could push average household energy bills up by around £3,600 a year from October. The cost is expected to be even higher when the price cap is updated again in January, likely to exceed £4,000. US bank Citi has forecast that huge increases in energy costs could push UK inflation to 18 per cent next year. The Bank of England is also forecasting a recession later this year. Arpan Rai26 August 2022 05:56 1661487929
The announcement of the energy price cap sees resistance from hundreds of thousands
Hundreds of thousands of people have already voiced their opposition to the expected rise in the energy price cap to be announced this morning. At least 114,599 people have signed up to the ‘Don’t Pay UK’ campaign, which is calling on residents to refuse to pay their energy bills and demand the energy price cap be reduced and reversed to the April 2021 cap. “Capping energy prices at 2021 levels has been out of reach for millions already, but this requirement is to meet the immediate emergency. We demand further reductions in prices and on a sustainable basis,” the campaign website states. It also seeks to stop any enforcement of prepaid cash. “Prepayment meters mean the poorest in society pay the most for their energy and are automatically cut off if they can’t afford it. This simply cannot continue and these devices and the higher tariff paid by the poorest must be scrapped,” according to the campaign. It also calls for people to be prevented from freezing to death in winter by introducing an emergency social energy tariff. It shouldn’t cost the same to heat a tin of beans as it does to heat your swimming pool, the campaign urges. Arpan Rai26 August 2022 05:25
