Millions of households are set to struggle to pay their bills after Ofgem raised the energy price cap on Friday. The UK energy regulator has set the new price cap at £3,549 from October 1, marking an 80 per cent jump in energy costs. Families could face poverty over the winter if they have to pay 24.37p per kilowatt hour for the gas they burn to keep their homes at a comfortable temperature. The price is currently 7.37p, already higher than ever. For the average household this means a bill of £5,632 a year from January, a 59 per cent increase compared to the newly set next cap which comes on 1 October. And in the worst warning yet, energy consultancy Auxilione has predicted a £7,700 bill from April 2023 – with gas costing consumers 34.22p per kWh. As a result, the chairman of the Commons Business, Energy and Industrial Strategy Committee said the “vast majority of people” could now be in fuel poverty,
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ICYMI- Protesters gather outside Ofgem headquarters calling for ‘payment strike’ on energy bills
Around 100 protesters gathered outside Ofgem’s London headquarters on Friday calling on consumers to withhold payment for “astronomical” energy price rises they could not afford. Crowd members chanted “enough is enough” and held banners reading “Freeze the profits, not the people” in the street at Canary Wharf in London. On Friday, Ofgem confirmed an 80.06 per cent rise in the energy price cap, sending the average household’s annual bill from £1,971 to £3,549 since October. The demonstration was promoted by Don’t Pay UK, a grassroots movement which describes its aim as “building a mass non-payment of energy bills strike starting on 1 October”.
Protesters gather outside Ofgem headquarters calling for a ‘payment strike’ on energy bills
Crowd members chant “enough is enough” Maryam Zakir-Hussain27 August 2022 10:44 1661591317
Price cap experts predict bills will average £7,700 next year
Predictions of what could be the next peak energy price for 24 million households continued to rise as international gas prices show no sign of cooling, a panel of experts has warned. The energy price cap, which has almost doubled from already record highs in early October, could reach above £5,600 by early next year and then rise even further, according to the latest estimates. Families could face poverty over the winter if they have to pay 24.37p per kilowatt hour for the gas they burn to keep their homes at a comfortable temperature. The price is currently 7.37p, already higher than ever. For the average household this means a bill of £5,632 a year from January, up 59% on the newly set next cap which comes on 1 October. And in the worst warning yet, energy consultancy Auxilione has predicted a £7,700 bill from April 2023 – with gas costing consumers 34.22p per kWh. The forecast is an increase of £438 from Auxilione’s forecast on Friday morning, and almost £900 in just two days. Maryam Zakir-Hussain27 August 2022 10:08 1661589999
“The vast majority of people” are now in fuel poverty, says the Labor MP
The “vast majority of people” may now be in fuel poverty, the chairman of the Commons Business, Energy and Industrial Strategy Committee has said.
Darren Jones said one possible definition of what fuel poverty means is if after paying housing costs and based on your disposable income, you spend more than 10 per cent of that on energy bills. The Labor MP for Bristol North West told BBC Breakfast: “The vast majority of people are now in this area across the country and that’s why Keir Starmer and Rachel Reeves have put forward a very important and bold proposal to help almost everyone by keeping the price capped at where it is now and stopped increasing in October because, I think, they correctly concluded that actually the vast majority of people are now affected by it.” Maryam Zakir-Hussain 27 August 2022 09:46 1661588714
ICYMI- Ofgem boss says government must act now to stop price cap rising further
Ofgem boss says government must act now to stop price cap rising further Maryam Zakir-Hussain27 August 2022 09:25 1661587514
‘You don’t have long to wait,’ says George Eustice on new Prime Minister’s plan to tackle energy crisis
The environment minister said people “don’t have long to wait” for news on how the next prime minister will tackle the cost of living crisis. George Eustice said both Tory leadership candidates had already set out “some concrete things” they would do to lighten the burden, but it was right that whoever secured the top job would “want to look at all the options that are costed right’ when they do office work. He told BBC Radio 4’s Today programme: “We announced a package of measures in June which was a £400 discount for everyone and then extra support for the most vulnerable. “Both candidates said they would do more. You don’t have long to wait, there will be a new prime minister in about 10 days. “And this is the point at which the new prime minister will have to consider the options and make decisions. and they’ve both made it clear that this will absolutely be at the top of their in-tray.” He added: “I think it’s right that when they become prime minister, whoever they are, they will want to look at all the options that are properly costed and understand the impact of each of those options.” Maryam Zakir-Hussain 27 August 2022 09:05 1661586304
ICYMI: Schools must stay open five days a week despite energy bill struggles, says minister
Schools in England must stay open five days a week this winter despite struggling with rising energy costs, an education minister has said. Some school principals are reportedly considering a three-day week to manage the spike in gas and electric bills. Read Adam Forrest’s full story here:
Schools must stay open five days a week despite struggles over energy bills, says minister
Education leaders will manage within ‘existing budgets’, says schools minister Will Quince Maroosha Muzaffar27 August 2022 08:45 1661585404
Cost of living crisis: The upcoming dates you need to know
An autumn of gloomy economic forecasts is ahead as the new Prime Minister enters Downing Street with plenty to do, writes Joe Somerland. Read the full piece here:
Cost of living crisis: The upcoming dates you need to know
An autumn of bleak economic forecasts is ahead as the new Prime Minister enters Downing Street with plenty to do Maroosha Muzaffar27 August 2022 08:30 1661584804
ICYMI: 1% ‘solidarity tax’ on all earners needed to boost energy bill support, think tank says
The Tory leadership contenders have been urged to review their plans to impose a 1 per cent “solidarity tax” on all earners to help pay for extra support with rising energy bills. The Resolution Foundation said it was time for Liz Truss and Rishi Sunak – who have promised tax cuts – to “think the unthinkable” and raise taxes amid the worsening cost of living crisis. The think tank said a 1 per cent rise in income tax across all rates – with 60 per cent paid by the richest fifth of UK households – would raise £9.5bn a year to support the health bills gas and electricity. Read Adam Forrest’s full story here:
1% ‘solidarity tax’ needed for more support on energy bills, think tank says
Liz Truss and Rishi Sunak must ‘think the unthinkable’ and consider tax hike, Resolution Foundation says Maroosha Muzaffar27 August 2022 08:20 1661584204
The Government confirms that the £400 energy rebate will be delivered to Northern Ireland
The government has pledged to offer Northern Ireland residents £400 off their energy bill. Chancellor Nadhim Zahawi said the support would be delivered “as soon as possible”, but did not set a specific timetable. Read the full story here:
The Government confirms that the £400 energy rebate will be delivered to Northern Ireland
But the DUP and Sinn Fein have been at odds over when people could get the discount. Maroosha Muzaffar27 August 2022 08:10 1661583604
Chancellor urges public to cut energy use as bill crisis grows
The chancellor urged the public to cut back on energy use as the crisis over household bills grows, with analysts predicting they could rise to £10,000 a year and campaigners warning lives will be lost. Nadhim Zahawi said he is working “steadily” to ensure the next prime minister is able to provide help to those who need it most as soon as possible. Read Kate Devlin and Adam Forrest’s full story here:
Chancellor urges public to cut energy use as bill crisis grows
The Lib Dems are calling on the chancellor to apologise Maroosha Muzaffar27 August 2022 08:00
