Latest news with #EnergyPriceCap
Yahoo
10 hours ago
- Business
- Yahoo
Why you must take a meter reading on Monday - or risk being overcharged
Households are being urged to submit meter readings before the newly lowered Ofgem price cap comes into force on July 1 2025. Consumers should submit readings before midnight on June 30 to avoid being overcharged, and to ensure that smart meters are working properly. Accurate readings prevent suppliers from estimating usage and applying previously higher prices to energy used after June 30, as Ofgem resets the cap on what suppliers can charge every three months. The latest change from £1,849 to a lower rate of £1,720 on July 1 represents a 7% drop, with average annual bills falling by around £122. Bad news! Ofgem's energy Price Cap that dictates the rate 2/3 homes in Eng, Scot & Wales pay, is now predicted to rise even more than before. I've knocked up this table showing today's new average predictions (from 3 big firms) for the Cap for someone on supposed 'typical use';… — Martin Lewis (@MartinSLewis) June 24, 2025 However, this is still £582 more than households were paying before the energy crisis began in autumn 2021. Advice Direct Scotland, a charity which runs the national energy advice service is among charities calling for a 'longer-term solution to the scourge of fuel poverty' with a UK-wide social energy tariff, to support low-income households which would automatically place the most vulnerable people on cheaper deals. It said that anyone unable to submit readings by June 30 should do so as close to the date as possible and advised taking a photo of the meter in case of disputes, and suggested checking for more favourable tariffs. The next price cap update will be announced by Ofgem in August, and many people are still struggling with record levels of debt. More on energy bills Martin Lewis' key Energy Price Cap changes advice Energy Price Cap warning for bill payers this summer The energy 'back billing' rules Martin Lewis wants you to share Conor Forbes, policy director at Advice Direct Scotland, says: 'Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher than they were before the energy crisis began. 'It's important to submit meter readings before the new price cap comes into force, to prevent being overcharged. 'For extra peace of mind, take a dated photo of the meter. If you have a smart meter, make sure it's working. 'People can also take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers. 'Struggling customers should know they do not have to suffer in silence. Our expert team is on hand for anyone who needs help, no matter their circumstances. 'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deals.' Household energy debt has reached alarming levels, underscoring just how much pressure both consumers and suppliers are under. Overall arrears remain alarmingly high, with 75% of the total debt having no repayment plan in place. The average debt per customer is £1,200, exacerbating an already pressurised market and making it increasingly difficult for both customers and suppliers to manage rising costs. 'Today's figures from Ofgem show that household energy debt has continued to rise, with an increase of £300m in Q1 of 2025, having now grown for ten consecutive quarters," says Matt Turner-Tait, Senior Manager at specialist Energy & Utilities consultancy, BFY Group. "There have been some well-intended attempts by the government and regulatory bodies to relieve the issue – such as the Warm Home Discount becoming accessible to double the number of households previously, or Ofgem's prepayment meter review prompting suppliers to return £18.6m to customers through compensation and debt write offs. "However, these measures don't provide the much-needed long term relief that customers need. "Since the covid crisis, the UK retains the most expensive electricity bills out of 25 other European countries – which highlights the need for urgent, sustainable action at policy level. Suppliers can provide some relief to customers through early engagement, accessible advice, and smarter tools for managing bills - this will help customers retain some financial stability.'
Wales Online
4 days ago
- Business
- Wales Online
DWP, Universal Credit and other money changes for benefits and bills for the coming weeks
DWP, Universal Credit and other money changes for benefits and bills for the coming weeks Here are all the key dates to keep an eye out over the next month. What changes are coming in to benefit and pension payments across July? (Image: PA ) When it comes to money, I think it is fair to say that it is something that confuses us all. With the cost of living, inflation and everchanging benefit cuts there's no wonder why it is hard to get our head around things. Over the next month we will see more changes again to our big financial decisions, including new energy price caps as well as the end of the mortgage guarantee scheme. You may be wondering, how will these various changes impact me and what support can I have? Here are some things to look out for over the next month and some key dates to add to the diary. For money-saving tips, sign up to our Money newsletter here . Universal Credit changes Those who receive tax credits, income support, jobseeker's allowance, and housing benefits should have already received notice about moving over to Universal Credit. This is part of the DWP's aim to migrate all 'legacy benefits' to Universal Credit by January 2026. It is an uncertain time for those who are concerned about Labour's planned changes to the welfare system, as it will see £5 million in cuts which will impact people across the country. You can read more about these changes here. Thankfully, we still have some time before these plans come into effect as rates for Universal Credit will change in April 2026. This change will see those who are receiving the benefit's standard allowance have a one-off above inflation rise by £7 a week, taking it from £91 to £98. Article continues below This comes after April 2025's announcement that all benefits were uprated by 1.7 per cent, matching the September 2024 inflation figure. This applied to all working-age benefits, including universal credit, PIP, DLA, attendance allowance, carer's allowance, ESA and more. Is the Energy Price Cap going up? Every 3 months OFGEM review and set a level for much energy suppliers can charge for each unit of energy and daily standing charge under the price cap. The energy price cap for the third quarter of the year will come into effect on 1 July. This will then run until 30 September 2025. They have said that "the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go down by 7% to £1,720 per year. For a typical household, this will reduce their energy bills by £11 a month." You can read more about OFGEM's announcement here. It's also worth mentioning that there isn't actually an absolute cap on what you can pay for energy. What the Ofgem price cap does is set a limit on the charges per unit and standing charges. Key dates to make note of: State pension payments The basic state pension is usually paid every four weeks straight in to your bank accounts. The exact day you receive it will correspond with the last two digits of your national insurance (NI) number. Here's when you should be paid based on those numbers: 00 to 19: Monday 20 to 39: Tuesday 40 to 59: Wednesday 60 to 79: Thursday 80 to 99: Friday June 30 - take an energy meter reading The Ofgem energy price cap is slated to drop by 7% from July, bringing the average annual bill down from £1,849 to £1,720. It's advisable to take a meter reading around June 30 to avoid being inadvertently charged at the higher rates. It's also worth mentioning that there isn't actually an absolute cap on what you can pay for energy. What the Ofgem price cap does is set a limit on the charges per unit and standing charges. June 30 - RTS switch off There are still approximately 300,000 radio teleswitch service (RTS) meters in households - but these will be deactivated on June 30. If you possess one of these meters, it's necessary to upgrade to a smart meter or risk having your heating permanently switched off - or perpetually stuck on. June 30 - end of the mortgage guarantee scheme The mortgage guarantee scheme, established in 2021, enables first-time buyers to secure a mortgage with a 5% deposit, with the Government pledging to cover some costs if your lender incurs losses. This scheme will conclude on June 30. 1 July - New energy price cap The energy price cap for the third quarter of the year will come into effect on 1 July. This will then run until 30 September 2025. It's also worth mentioning that there isn't actually an absolute cap on what you can pay for energy. What the Ofgem price cap does is set a limit on the charges per unit and standing charges. 31 July - Second payment on account By the end of July, those who are self-employed will need to make their second and final payment on account for the 2024-2025 tax year. You can find more information on this on the website here. These payments are calculated based on your estimated earnings, so the amount you earned the previous year. If you ended up earning more than estimated, you may still have tax to pay on top of your payments on account. This is known as a 'balancing payment'. If you earn less than estimated, you may be able to claim a tax refund. Benefit payment dates in July Benefit payments will be made as usual in July, with no changes to the schedule since there are no bank holidays. These include: Personal independence payment (PIP) Attendance allowance Carer's allowance Employment support allowance Income support Jobseeker's allowance Universal Credit State pension Pension credit Child benefit Disability living allowance Article continues below For more information on financial support and Universal Credit you can visit the website here.
Glasgow Times
18-06-2025
- Business
- Glasgow Times
Energy Price Cap warning as price set to increase in October
This follows a similar rise in April, and a cut to come in July, but will still come as a blow to customers, who face increasing bill prices and rising food costs. Martin Lewis says: "The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through the Oct Cap assessment period). "Much of this is on the back of the rise in energy wholesale prices due to the conflict in the Middle East. Current predictions range - Up 1.6%-2.8% Oct - Up c.1% on top of that in Jan - Up c.3% on top of that next April Though the further out you go the more crystal ball gazing it is." Not great news. The Energy Price Cap now predicted to RISE about 2% or 3% in October. The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through… — Martin Lewis (@MartinSLewis) June 17, 2025 What is the energy price cap? The term is quite confusing and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more. The cap was introduced on January 1 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off. But it only limits what you pay for each unit of gas and electricity that you use. It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on. Recommended reading: Warm Home Discount There is some better news for those on very low incomes this winter, with an expansion of the £150 Warm Home Discount to 2.7m more low income households winter 2025/26. Martin Lewis added: "It'll be done by getting rid of the 'high energy cost' criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes). "That's good as it's a terribly implemented system which left many, literally, unfairly out in the cold."
Glasgow Times
18-06-2025
- Business
- Glasgow Times
Ofgem urgent heating warning as 113,000 Scots at risk
The alarm has been raised by Ofgem, which revealed that 113,535 Scottish homes are still using outdated Radio Teleswitching System (RTS) meters—a technology that has been in use since the 1980s to control heating schedules via longwave radio signals. Originally due to be retired in March, the RTS signal shutdown was delayed to give households more time to upgrade. However, the new deadline of June 30 is now fast approaching, and many households still have not taken action. READ MORE: Hundreds of Ofgem staff in Glasgow vote to strike in pay dispute Ofgem has warned that households still using RTS meters could lose control of their heating and hot water, which may be left permanently on or off after the signal is phased out. "Heating and hot water may be left continually on or off," Ofgem cautioned, according to The Herald. While there won't be a mass switch-off on June 30, the signal will be phased out gradually in stages. Energy UK, which represents the country's energy suppliers, has issued clear guidance to customers. They have advised that they should book a smart meter replacement appointment as soon as possible. While some appointments may be scheduled beyond the June 30 deadline, the system will still be phased out in small groups. An Energy UK spokesman said: "There will not be a mass switch off of the RTS national signal on June 3. From this date, we will begin a phase-out of the RTS functionality for small groups of meters at a time. "Customers should still continue to book replacement appointments as soon as possible, and should not worry if the appointment they have been given is for after June 30. "All affected customers will be contacted in advance, but as we expect appointments to be booked up very quickly, the advice still remains for customers to contact their supplier to book a replacement at their earliest convenience." READ MORE: Energy Price Cap: Ofgem drops cap by £129 from July The organisation also confirmed that all affected customers should be contacted in advance, but encouraged people to proactively reach out to their energy supplier due to high demand for appointments. Most Scottish homes use standard meters and will not be impacted, regardless of whether they've switched to smart meters. However, for those still dependent on RTS meters, urgent action is needed. RTS meters were introduced in the 1980s to switch between peak and off-peak energy usage. Their numbers were expected to decline as smart meters became more widespread, but over 100,000 Scottish homes still rely on the technology.
South Wales Argus
18-06-2025
- Business
- South Wales Argus
Energy Price Cap warning as price set to increase in October
This follows a similar rise in April, and a cut to come in July, but will still come as a blow to customers, who face increasing bill prices and rising food costs. Martin Lewis says: "The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through the Oct Cap assessment period). "Much of this is on the back of the rise in energy wholesale prices due to the conflict in the Middle East. Current predictions range - Up 1.6%-2.8% Oct - Up c.1% on top of that in Jan - Up c.3% on top of that next April Though the further out you go the more crystal ball gazing it is." Not great news. The Energy Price Cap now predicted to RISE about 2% or 3% in October. The latest predictions from Eon, British Gas & EDF have just come out. All are up on a week ago when it was predicted Oct would stay roughly the same as now (we're now 1/3 of the way through… — Martin Lewis (@MartinSLewis) June 17, 2025 What is the energy price cap? The term is quite confusing and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more. The cap was introduced on January 1 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off. But it only limits what you pay for each unit of gas and electricity that you use. It's based roughly on wholesale energy prices (those that firms pay) and applies only to providers' standard and default tariffs, which the vast majority of households are now on. Recommended reading: Warm Home Discount There is some better news for those on very low incomes this winter, with an expansion of the £150 Warm Home Discount to 2.7m more low income households winter 2025/26. Martin Lewis added: "It'll be done by getting rid of the 'high energy cost' criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes). "That's good as it's a terribly implemented system which left many, literally, unfairly out in the cold."
