MILLIONS of Brits will see their energy bills soar by a record £693 a year after the new price cap was confirmed today.
The energy price cap, which comes into effect on April 1, will take the average household bill to £1,971 a year.
2
2
The cap has soared by 54%, more than was predicted by analysts, and will impact around 22million households.
It climbed to £1,277 in October, but today was increased again as suppliers and households alike struggle to cope with soaring costs.
Meanwhile, prepayment meter customers will see an increase of £708 from £1,309 to £2,017.
The price cap is also expected to go up again in October.
Tashema Jackson, energy expert at Energyhelpline.com, said the rise is a “body blow” for millions of households.
“This is the single biggest bill increase in living memory, and will leave many people up and down the country with the stark choice of heating or eating,” she said.
Most read in Money
The announcement had been planned for next week but has been brought forward to give customers more clarity as anxiety over the rising cost of living builds.
But soaring wholesale gas costs mean suppliers are passing high prices on to customers.
Millions of Brits have been moved on to standard variable tariffs in recent months after suppliers have gone bust.
When the price cap was last reviewed in October 2021 it protected 15million households — but that number has now hit 22million.
Jonathan Brearley, chief executive of energy regulator Ofgem, said: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.”
Chancellor Rishi Sunak today outlined a package of support for those affected by the price hike and announced the poorest Brits will get an extra £350 to help them through the energy bills crisis.
Read more on The Sun
In a press conference held this evening the Chancellor gave more details on his plans to protect struggling families and the elderly from steep bill increases.
Other measures include Council Tax rebates of £150 for low and middle income households.
? Read our Energy price cap live blog for the latest updates
The Bank of England has also hiked interest rates to £0.5% in a whammy for consumers.
The move will increase interest rates on mortgages for homeowners.
What should you do now?
If you’re on a fixed deal then you don’t need to do anything. You have locked in cheap prices – and you won’t see a rise in your bills until your deal ends.
Make a note in your diary to review your bill a month before the end of your fixed agreement.
If you’re on a standard variable tariff – like 22million other households – then your bill is likely to rise in line with the price cap.
Justina Miltienyte, energy policy expert at Uswitch.com, said: “If you’re worried about getting into debt, it is important to contact your supplier as soon as possible.
“It’s also worth checking what grants and schemes might be available to help cover your energy bills, particularly if you or someone you know is vulnerable.”
She said it is “probably best to stay on your supplier’s default tariff for now”, despite the rise, unless you’re already on a fixed deal.
Keep an eye on the market and be ready to fix a new deal as and when they become available.
Look out for announcements made today on energy bill and Council Tax rebates which may help you.
In the meantime, don’t panic. Other help is available.
You should check whether you’re missing any benefits such as the Warm Home Discount – which gives you £140 off energy bills.
You may also be able to get help from your council as part of the Household Support Fund.
People on certain benefits can also get Cold Weather Payments of £25 a year when the temperature drops.
If you’re struggling to pay your bills then make sure you speak to your supplier.
Some firms can give grants of up to £750 to those struggling with bills.
We pay for your stories!
Do you have a story for The Sun Online Money team?
