Energy price cap: What next for gas and electricity bills and can I fix?
What is the energy price cap and how is it changing?
The energy price cap covers around 22 million households in England, Wales and Scotland and is set every three months by Ofgem.It fixes the maximum price that can be charged for each unit of energy on a standard - or default - variable tariff for a typical dual-fuel household which pays by direct debit.Between 1 April and 30 June 2025, gas prices are capped at 6.99p per kilowatt hour (kWh), and electricity at 27.03p per kWh.This means the annual bill for a dual-fuel direct debit household using a typical amount of energy is £1,849 per year.
Those who pay their bills every three months by cash or cheque pay £1,969.The cap does not apply in Northern Ireland, which has its own energy market.
What is a typical household?
Your energy bill depends on the overall amount of gas and electricity you use, and how you pay for it.The type of property you live in, how energy efficient it is, how many people live there and the weather all make a difference.
The Ofgem cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, settled by direct debit.The vast majority of people pay their bill this way to help spread payments across the year. Those who pay every three months by cash or cheque are charged more.
Should I take a meter reading when the energy cap changes?
Submitting a meter reading when the cap changes means you will not be charged for estimated usage at the wrong rate.This is especially important when prices go up.Customers with working smart meters do not need to submit a reading as their bill is calculated automatically.
What is happening to prepayment customers?
Between April and June, households on prepayment meters are paying slightly less than those on direct debit, with a typical bill of £1,803, a rise of £113 from the previous quarter.About four million households had prepayment meters in January 2025, according to Ofgem.
Many have been in place for years, but some were installed more recently after customers struggled to pay higher bills.Rules introduced in November 2023 mean suppliers must give customers more opportunity to clear their debts before switching them to a meter. They cannot be installed at all in certain households.
Can I fix my energy prices?
Fixed-price deals are not affected by the energy price cap, which changes every three months and can go up or down.They offer certainty for a set period - often a year, or longer - but if energy prices drop when you are on the deal, you could be stuck at a higher price. You may also have to pay a penalty to leave a fixed deal early.Ofgem, the energy regulator, says customers who want the security of knowing what their bill will be should consider moving to a fixed deal. However, it says they should make sure they understand all the costs.Martin Lewis, founder of Money Saving Expert, recommends checking whole-of-market energy price comparison sites to help find the best deal.
What are standing charges and how are they changing?
Standing charges are a fixed daily fee to cover the costs of connecting to gas and electricity supplies. They vary slightly by region.On 1 April, the average electricity standing charge fell from 60.97p to 53.8p but the average gas standing charge increased from 31.65p to 32.67pSome customers in London and the North Wales and Mersey region saw larger increases.Campaigners argue standing charges are unfair because they make up a bigger proportion of the bill of low energy users.In response, Ofgem has said that energy firms must provide a choice of price-capped tariffs from winter 2025.One would have a standing charge and unit rate - as is the case now - and another no standing charge but a higher unit rate. However, the proposals have been criticised as being too complicated.
What help can I get with energy bills?
The Household Support Fund, which was introduced in September 2021 to help vulnerable customers, has been extended until March 2026.The Warm Home Discount scheme continues to offer a discount to eligible pensioners and low income households.The government's Fuel Direct Scheme can help people to repay an energy debt directly from their benefit payments.In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills.Most suppliers also offer hardship grants.Changes to the winter fuel payment mean more than 10 million pensioners have not received the money this winter.Ofgem: Help with bills
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
9 minutes ago
- Daily Mail
Five tricks to stop your pension falling short: Experts warn HALF of workers over 60 don't have enough money for retirement – but here's how YOU can catch up fast
Baby boomers face a financial crunch, with figures revealing almost half of workers over 60 won't have enough money to fund the lifestyle they want in retirement. As many as 49 per cent of the still-employed generation aged 60 to 80 are not expected to reach their retirement goals, according to research for The Mail on Sunday.
The Independent
39 minutes ago
- The Independent
I'm a bouncer – policing what people say in pubs is a step too far
'The death of the Great British pub,' screamed a recent headline. The story underneath was referring to the idea of so-called 'banter bouncers': card-carrying heavies who go from table to table in licensed venues, ensuring all spoken language is kept strictly PG. As an actual bouncer (or an SIA level 2 licensed door supervisor, to use my official job title), this smells like clickbait. In a time where six pubs and three clubs are going under every week in the UK, the notion of hiring an extra set of size elevens to prowl the carpet and make sure no one's talking out of line seems like blue-sky thinking. Yet the government's Employment Rights Bill, back on the table when MPs return from recess next month, includes provisions to require employers to 'take all reasonable steps' to prevent harassment at work by third parties. A TUC poll found that three in five women have experienced sexual harassment, bullying or verbal abuse at work. The TUC also clarified that shopworkers, NHS workers and many other public-facing staff experience abuse from customers. Yet this clause leaves employers to interpret it for themselves. Harsh language isn't something I particularly look out for in the job – not unless it's causing someone serious upset. I'm more focused on hands hovering over the top of women's drinks, or underage kids eyeing up barrels in the loading bay. Two of my security colleagues, who guard a residential venue, recently had their hands full trying to get a towel around a naked sleepwalker. Then there's the question of what actually constitutes 'banter.' Everyone's got the right to let off verbal steam when they're out, provided that they're not scalding the next customer's right to do the same. Door staff soon learn the difference between government guidelines, the venue's policy and what counts as unreasonable. Trying to police what people are saying once they've had their first few gulps of loose juice seems not just completely unreasonable, but more like commercial death. Eighteen to 34-year-olds make up the largest single age group of pub clientele (28 per cent), and apparently a quarter of them prefer messaging to voices. Surely serious banter bouncing should be done digitally? Something best left to the billionaires and the algorithms, if you ask me. I can see the small print on the next software update now: 'Any detection of flagged language will result in the darkest secrets from your camera roll being automatically sent to your nan and/or your mother-in-law.' The idea of refereeing private conversations face-to-face seems so far-fetched that I suspect there's a hidden agenda behind the banter bouncer headlines: to wind people up. This year, opposing voices on the political spectrum have been decrying that everything is broken, the elites are taking over, and the only way to feel like you still count is to gang up on the streets and start kicking bins over. As someone who has to keep an eye on the streets and stands the bins back up again, I'm yet to see the threats to my way of life that I'm being warned about. But I have seen those in power taking notes: the prime minister is pledging a 'strengthened crackdown' on potential rioters. Anyone facing a spell inside could also find themselves being shot by the new tasers being issued to prison staff. Hopefully, us door crew won't be made to carry extra tools if we're put on language patrol. I got into the job to stop trouble – not to ignite it. High prices and lagging wages can leave a lot of people just one rude word or indiscretion away from blowing up. If you want to know whether your own choice of banter counts as one of those trigger words, I advise going to an expert: Countdown 's lexicographer, Susie Dent. She recently shared the term 'lalochezia': 'the use of swearing to relieve stress, anger, pain or frustration.' Before that, she dropped 'circumlocutionist': 'one who consistently speaks in a roundabout way'. Lalochezia is okay – but don't be a circumlocutionist. And if that last one's too much of a mouthful? Swap it for a more versatile C-word with fewer syllables.
The Sun
an hour ago
- The Sun
Households can apply for supermarket vouchers worth £320 to spend in Waitrose and M&S in just HOURS
HOUSEHOLDS will be able to apply for supermarket vouchers to spend in supermarkets like Waitrose and M&S in a matter of hours. Families struggling with the cost of living can receive up to £320 to put towards their food shops. This is part of a wider essential support scheme to take a bit of pressure off of low income families. Those who are eligible and meet the criteria can apply when applications re-open tomorrow (August 4th). Each council has its own share of the £742million, which they can dole out to residents in need. The tokens can then be used in a wide range of shops. All the shops accepting vouchers Here is a list of the shops that will accept the tokens: Aldi Asda Farmfoods Iceland M&S Morrisons Sainsbury's Tesco Waitrose Residents of North Northamptonshire are among those who will be able to apply for the vouchers. According to the council website, a single person household can be awarded £150, £260 is available for two people, and £320 will be handed out to homes of 3 or more residents. The site also highlights that the eligibility criteria must be met in order to receive this support. The council has stated: "Wider essentials and cost of living support is not intended as emergency support and one award will be allocated per eligible household. You also must provide a national insurance number and proof of income when applying for the vouchers. This scheme was paused due to the high number of applications but will resume tomorrow. Five tips to feed your family for less and save on your supermarket shop The council asks that applicants wait two months for their request to be processed. If approved, your voucher will be sent to your email address. Household Support Fund explained Sun Savers Editor Lana Clements explains what you need to know about the Household Support Fund. If you're battling to afford energy and water bills, food or other essential items and services, the Household Support Fund can act as a vital lifeline. The financial support is a little-known way for struggling families to get extra help with the cost of living. Every council in England has been given a share of £421million cash by the government to distribute to local low income households. Each local authority chooses how to pass on the support. Some offer vouchers whereas others give direct cash payments. In many instances, the value of support is worth hundreds of pounds to individual families. Just as the support varies between councils, so does the criteria for qualifying. Many councils offer the help to households on selected benefits or they may base help on the level of household income. The key is to get in touch with your local authority to see exactly what support is on offer. And don't delay, the scheme has been extended until April 2025 but your council may dish out their share of the Household Support Fund before this date. Once the cash is gone, you may find they cannot provide any extra help so it's crucial you apply as soon as possible Visit North Northamptonshire Council for more information and to apply. 3 3
