MILLIONS of households will be impacted by these big energy bill changes coming in 2023.
Energy bills will rise again in April, while some households are being hit by unexpected rises now.
1
The current energy price guarantee caps the average household energy bill at £2,500 a year.
But the energy price guarantee is only a cap on unit rates – so if you use more energy expect to pay more than the average household.
The energy bill support scheme is set to come to an end, while the government has announced further cost of living payments to help struggling houseolds.
Here are all the energy bill changes set to impact your finances in 2023.
January
Energy bill rises
Major suppliers are hiking bills for some households while others may pay less in the new year.
The changes come as part of the government’s energy price guarantee, which limits the average bill to £2,500 a year.
But regulator Ofgem still sets the price cap on what suppliers can charge and the next update which came into effect on January 1.
That means there may be a slight difference in bill prices from now.
Most read in Money
The change will be different depending on who you’re with, how you pay and where you live, as the supplier decides the difference.
So that means your bill could either rise or fall. Keep in mind for most it will be pennies difference.
But for some people on Eco tariffs, where you pay different rates at night and day, they could pay nearly £150 more over the course of a year.
The hike will be worst for those on standard tariffs in North Wales and the Merseyside area who pay for their electricity on receipt of bills and not by direct debit.
Their bills are set to rise by more than £5 per month between January and April.
But those in the north of England will likely pay around £3.90 less per month.
Prepayment meter customers will see an average bill increase of £1.50, while those who pay by direct debit will see an average increase of just two pence.
The changes are made to the amount that energy suppliers charge per unit of gas and electricity they supply.
February
Ofgem’s new energy price cap
On Monday, February 27, regulator Ofgem will announce its new energy price cap, which will apply from April to June.
Cornwall forecast that energy bills, as decided by Ofgem’s price cap, will be £3,545 for the average household.
But households will continue to have their energy bills for the typical household will be capped at £3,000 as part of the Energy Price Guarantee (EPG) scheme.
March
Energy bill support scheme ends
In May 2022, the government announced millions of households would receive £400 to help with their energy bills this winter.
The £400 payment has been being split into six monthly instalments.
Payments have been made since October, and the final payment will be made in March.
For the majority of energy customers, their monthly bills are automatically discounted.
However, households with traditional pre-payment meters are being sent vouchers to redeem at their nearest top-up point instead.
But thousands of hard-up households are missing out on free cash to help pay for energy bills as vouchers go unredeemed.
Spring Budget
Chancellor Jeremy Hunt will delivery his Spring Budget on March 15.
He will announce any changes to taxes on goods such as petrol, cigarettes and booze.
It is not yet known what else will be included in the announcement, but it’s one to keep an eye on.
April
Energy bill rise
Energy bills for the typical household were initially set to be frozen at £2,500 for the typical household for two years.
But the Chancellor announced in November that it would only be in place for six months.
In the Autumn Statement, Jeremy Hunt said typical bills will rise to £3,000 in April.
This means the average household will see their bills rise by £500 a year.
The exact amount that your energy bills will rise by will depend entirely on your own usage – so if you use more than the average household, expect to pay more.
And while there’s nothing you can do to stop these costs from rising, there is a whole host of government support in the pipeline to help hard-up households.
Spring
First chunk of £900 cost of living payment
Millions are in line for up to £1,350 in free cash from spring.
The help is aimed to help soften the blow of high energy bills, food costs and other necessities.
The first chunk of the £900 cost of living payment will be paid directly into claimants’ accounts.
Unlike last year’s help, this cost of living payment will be paid in three, not two, instalments.
More than eight million people will get the help direct to their bank accounts, and the £900 help will be paid over the financial year.
This is so hard-up households will get a “consistent support offering throughout the year”, the DWP said.
To be eligible for the payment, households will need to be claiming at least one of the following:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Housing Benefit
- Council Tax Support
- Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
- Universal Credit
For the previous payments, you had to be entitled or later found to be entitled to one of these benefits by a certain date.
This certain date will be announced nearer the time, the DWP said.
May
Ofgem announce energy price cap
Regulator Ofgem will reveal the new cap level that will apply from July to September.
The Energy Price Guarantee will still be in place over this period.
Summer
£150 disability payment
Over six million people with disabilities will receive a £150 payment this summer.
The exact eligibility criteria for getting the payment has not been revealed.
But those who qualified for last year’s £150 bill help received one of the following benefits:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
More details will be announced in due course.
August
Ofgem announce energy price cap
This month, Ofgem will announce the cap level that will apply from October to December.
The Energy Price Guarantee will remain in place.
Autumn
Second chunk of £900 cost of living payment
The second instalment of the £900 cost of living payment will be paid in autumn.
This second chunk is worth £300.
Again, further details about the qualifying benefit date for the help will be announced nearer the time.
Winter
£300 pensioner payment
Millions of pensioners will receive another £300 cost of living payment.
This follows on from last year’s help which was given to households who normally get the Winter Fuel Payment.
It’s not yet known whether households will qualify if they normally receive the Winter Fuel Payment, as exact details have not been revealed yet.
You qualified for the last Pensioner Cost of Living payment if:
- You were born on or before September 25, 1956
- You lived in the UK for at least one day during the week of 19 to 25 September 2022 in what is known as the “qualifying week”
Meanwhile, The Sun has put together a list of energy saving tips which could slash your bills by up to £1,666 this year.
Plus, Martin Lewis has warned everyone about eight vital energy checks you need to do now.
