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Gas and electricity bills are going up as the new energy price cap takes effect.

You may have read that from 1 October the price cap will mean average energy bills will increase by 27% from £1,971 a year to £2,500.

But it isn’t as simple as that.

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What is happening?

The price of gas and electricity is determined by global wholesale prices, which shot up after supplies from Russia were cut as a response to the war in Ukraine – and after energy consumption increased again after COVID.

How much these wholesale energy prices are passed on to customers is controlled by the UK regulator Ofgem in the form of a price cap four times a year.

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This price cap limits the cost households pay per unit of energy (kilowatt hours) they use.

Average annual bills had been touted to go up to £3,549 in line with wholesale prices, but Prime Minister Liz Truss’s “energy price guarantee” has reduced the original price cap announced on 26 August.

It means that from 1 October, instead of paying a maximum of 28p per kWh for electricity – people will now pay 34p.

And instead of paying a maximum of 7p per kWh for gas – they will now pay 10.3p.

Standing charges, which are the cost of connecting to the National Grid, are also going up with the price cap, but not by very much.

From now they will increase from 45p a day to 46p a day for electricity and 27p to 28p for gas.

Does the price cap cover everyone?

The price cap only covers domestic households in England, Wales and Scotland. The same level of support will be applied to the market in Northern Ireland.

Traditionally businesses are not covered by the price cap, but as part of a separate “energy bill relief” scheme, the government is providing additional support for firms.

You will be included in the price cap if you are a dual-fuel customer (use the same company for electricity and gas) on a standard variable tariff, who pays by direct debit, credit, or prepaid meter.

Standard variable tariffs mean your energy company can change the price per unit at any time – in line with global wholesale prices – but is limited by the price cap.

Fixed tariffs are agreed upon annually and mean the price per unit will not change for that year.

These are not included in the price cap, but the government says its energy price guarantee will mean a discount of 17p per kWh for electricity and 4.2p per kWh for gas.

They say this will bring fixed rates down to similar levels as the energy price cap.

If you are locked into an expensive fixed tariff, you can take a meter reading before 1 October to ensure your energy company honours the price guarantee discount.

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PM announces £2,500 average price cap

Price cap does not mean energy only costs £2,500 a year

The government estimates that the new price cap will result in average annual energy bills increasing from £1,971 to £2,500.

But that does not mean people won’t be charged more than £2,500 a year for their energy – it is just an estimate for a typical household.

According to Ofgem, a typical household in Britain has 2.4 people living in it – who use 242 kWh of electricity and 1,000 kWh of gas a month.

But all households are different – and their energy usage will depend on how many people live there, what time of day they use the most energy, and how energy efficient their home is.

For example, the government estimates that if you live in a purpose-built flat your average bill will be £1,750.

If you live in a mid-terraced house it will be around £2,350.

Those who live in semi-detached houses will pay around £2,650 a year.

And detached properties will pay roughly £3,300 annually.

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How to save on energy bills

What extra help is the government offering?

Before Liz Truss was appointed prime minister, former Chancellor Rishi Sunak announced all households would receive a £400 discount on their energy bills between October 2022 and March 2023.

From 1 October people will start to receive a £66 discount for October, another for November, and £67 for December, January, February and March.

Some energy companies are directly applying these to bills, while others will credit the amount to customers’ bank accounts.

Eight million households in receipt of certain benefits will also get £650 to help with their bills.

Pensioners will receive £300 and some people on special disability benefits will get £150.

People on low incomes and pensioners on pension guarantee credit will get £140 off through the Warm Home Discount.

Vulnerable families can also apply for extra help via their local council and their Household Support Fund.

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What about businesses?

The government’s energy bill relief scheme for England, Scotland and Wales will mean help with firms’ energy bills for six months from 1 October. A parallel scheme is operating in Northern Ireland.

Wholesale prices businesses pay for electricity will be capped at 21.1p per kWh for electricity and 7.5p per kWh for gas.

This will be applied automatically to companies using variable tariffs.

For those on fixed price contracts, the same discounts will be applied if the agreement started after 1 April 2022.

The savings will appear on bills in November and will be backdated to October.

A review will be published at the end of the year which will help identify “vulnerable” businesses that need support beyond March 2023.

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UK weather: New ice warnings issued and runway closure causes travel delays – as temperatures set to reach -16C

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UK weather: New ice warnings issued and runway closure causes travel delays - as temperatures set to reach -16C

The Met Office has put yellow weather warnings over snow and ice in place from this afternoon covering much of the UK.

It had a number of yellow warnings in place on Thursday across the country, but most were initially set to expire by 11am, with only a snow and ice alert in Scotland remaining until midnight.

But it has now updated its map to show yellow ice warnings for much of the Midlands, North West England, Eastern England, Wales and Northern Ireland from 4pm on Thursday until 10am on Friday, while the snow and ice warning for Scotland has been extended to 10am on Friday.

Weather warnings for Thursday
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Met office weather warnings for Thursday Pic: Met Office

Weather warnings for Friday. Pic: Met office
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Weather warnings for Friday. Pic: Met office

A separate yellow warning for ice is in force from 3am on Friday until 11am, covering South West England and parts of South Wales.

It comes as large swathes of the country deal with disruption caused by the freezing weather, with temperatures expected to fall as low as -16C on Thursday night both in the northeast of England and Scotland, the Met Office has said.

Manchester Airport has warned passengers of delays after temporarily closing its runways due to “significant levels of snow”.

In a statement on Thursday morning, the airport said: “Our runways are temporarily closed due to significant levels of snow, as our teams work hard to clear them as quickly as possible.”

The airport announced its runways had reopened at 10am, but warned “as a result of the earlier closure, some departures and arrivals may still experience delays”.

“The safety of our passengers remains our top priority. Thank you for your understanding and patience,” it added.

Commuters wait for a tram on a snow-covered platform in Manchester.
Pic: Reuters
Image:
Commuters wait for a tram on a snow-covered platform in Manchester. Pic: Reuters

Snow covers a vehicle in Buxton.
Pic: Reuters
Image:
Snow covers a vehicle in Buxton. Pic: Reuters

The A30 in Cornwall was closed westbound between the A3047 junctions Avers and Tolvaddon on Thursday morning following a multiple vehicle collision, according to National Highways, after an amber warning for snow and ice was in place yesterday.

It said at 8.45am that emergency services were at the scene while traffic built on the roads.

Devon and Cornwall Police and Devon County Council Highways had earlier warned of roads closing and motorists being stationary for “long periods of time” in a joint statement.

Snow ploughs became stuck in queues of traffic caused by “minor incidents”, the statement added.

All of the warnings in place across the country are yellow, meaning there is a danger of injury from slips and falls and some disruption to travel expected.

A yellow warning for snow and ice is in place for the following regions from 4pm on Thursday to 10am on Friday:

  • East Midlands
  • North West England
  • Northern Ireland
  • Wales
  • West Midlands

Get the forecast for your area

Icicles hang from the Killhope Lead Mine in Durham.
Pic: PA
Image:
Icicles hang from the Killhope Lead Mine in Durham. Pic: PA

Other yellow warnings which covered much of the country on Thursday morning have now expired.

They included a warning for snow and ice affecting Cornwall, much of Wales and parts of northwest England until 11am, an ice warning for parts of southern England and south-east Wales until 10.30am and a fog warning for Northern Ireland until 9am.

Menston, West Yorkshire
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Menston, West Yorkshire

Snow covers the Killhope Lead Mine in Durham.
Pic: PA
Image:
Snow covers the Killhope Lead Mine in Durham. Pic: PA

Travel disruption to road and rail services are likely on Thursday in the warning areas, as well as the potential for accidents in icy places, the forecaster said.

As icy conditions persist, motorists are being urged to stick to major roads that are most likely to have been gritted.

Car insurer RAC said it has seen the highest levels of demand for rescues in a three-day period since December 2022.

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Stuart Hogg: Former Scotland rugby captain given community payback and non-harassment orders for domestic abuse

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Stuart Hogg: Former Scotland rugby captain given community payback and non-harassment orders for domestic abuse

Former Scotland rugby captain Stuart Hogg has been handed a community payback order and a non-harassment order for abusing his estranged wife over the course of five years.

Hogg, 32, last year pleaded guilty to a single charge of domestic abuse of his ex-partner, Gillian Hogg, between 2019 and 2024.

The sportsman admitted shouting and swearing, tracking her movements and sending her messages which were alarming and distressing in nature.

At Selkirk Sheriff Court on Thursday, he was given a community payback order with one year of supervision and a five-year non-harassment order.

Sheriff Peter Paterson warned Hogg the sentence was an “alternative to custody”.

Former Scotland rugby captain Stuart Hogg arrives at Selkirk Sheriff Court.
Pic: PA
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Hogg arriving at Selkirk Sheriff Court on Thursday. Pic: PA

Former Scotland rugby captain Stuart Hogg leaves Selkirk Sheriff Court.
Pic: PA
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Hogg leaving court. Pic: PA


A court heard how he berated Mrs Hogg for “not being fun” after going on drinking binges with his colleagues, and once sent more than 200 text messages to her in the space of a few hours which caused her to suffer a panic attack.

Hogg had been due to stand trial at Selkirk Sheriff Court last November, but pleaded guilty to the abuse which was said to have taken place at various locations including Hawick in the Scottish Borders and Bearsden in East Dunbartonshire.

Former Scotland rugby captain Stuart Hogg arrives at Jedburgh Sheriff Court to be sentenced after he admitted abusing his estranged wife over the course of five years. Picture date: Thursday December 5, 2024. PA Photo. See PA story COURTS Hogg. Photo credit should read: Owen Humphreys/PA Wire
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Hogg arriving at Jedburgh Sheriff Court in December. Pic: PA

At Jedburgh Sheriff Court in December, he was initially handed the five-year non-harassment order and fined £600 for breaching bail conditions by repeatedly contacting Mrs Hogg last June.

The former Glasgow Warriors and Exeter Chiefs, who plays for French club Montpellier, now lives abroad and is said to be in the process of getting a divorce.

Stuart and Gillian Hogg in 2017. Pic: Stuart Wallace/Shutterstock
Image:
Stuart and Gillian Hogg in 2017. Pic: Stuart Wallace/Shutterstock

Prosecutor Drew Long said the couple moved to Exeter in 2019 with their three young children, who were all under three, but Hogg’s behaviour “deteriorated” as he went out partying.

Mr Long said Hogg would “shout and swear and accuse Mrs Hogg of not being fun” for not joining in drinking, and that her family “noticed a change in her”.

In 2022, Mrs Hogg went on a night out and was bombarded with text messages from the rugby player which “caught the attention of the people she was with”, the prosecutor said.

The following year, the couple moved to Hawick in the Borders, but Hogg used an app to track his wife and “questioned her whereabouts” while she was dropping the children off.

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In 2023, she decided to leave the sportsman and sought advice from a domestic abuse service.

Mr Long said in September of that year, Hogg “sent in excess of 200 texts in a few hours despite being asked to leave her alone”, which led to Mrs Hogg having a panic attack.

On 21 February 2024, police were called due to Hogg “shouting and swearing”.

He was taken into custody and thereafter placed on a bail order stipulating not to contact Mrs Hogg or to enter the family home.

The Crown Office and Procurator Fiscal Service (COPFS) said “no one should have to live in fear of a partner or former partner”.

Lynne Barrie, procurator fiscal for Lothian and Borders, added: “Stuart Hogg has now been convicted and held accountable for subjecting his estranged wife to years of domestic abuse.”

Hogg made his Scotland debut in 2012 and went on to make 100 appearances for his country.

He also made two appearances for the British and Irish Lions and was made an MBE for services to the sport in last year’s New Year Honours list.

Following his guilty plea, Mrs Hogg thanked all those who had shown support.

She praised her family and friends, and also singled out those who had given her “a hi, a smile, a hug or even just a look to show they care”.

Mrs Hogg said she had thought “long and hard” about posting on Facebook, but added: “Now, it’s time to start my next chapter.

“To move on and to keep showing my kids every day that strength comes from unconditional love and support around you, and even when it hurts, love wins.”

Following the court case, Scottish Women’s Aid said coercive control – including stalking and micromanaging how women mother, where they go, what they wear and what they’re allowed to say – can be “more traumatic than a physical assault”.

Dr Marsha Scott, chief executive of the charity, added: “The sentence in this case, like so many handed down in Scotland, hardly meets the test of being proportionate when compared to the harm this man has caused.”

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Liz Truss sends cease and desist letter to Sir Keir Starmer over claims she ‘crashed the economy’

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Liz Truss sends cease and desist letter to Sir Keir Starmer over claims she 'crashed the economy'

Liz Truss’ lawyers have sent a cease and desist letter to Sir Keir Starmer over his claims she “crashed the economy”.

The letter says Sir Keir’s continued claim the former Conservative prime minister crashed the economy with the September 2022 mini budget is defamatory and will “likely continue to cause serious harm to her reputation”.

It focuses on the Labour leader’s claims made in June last year during the general election campaign, and says accusations she crashed the economy were made with the purpose of damaging public opinion of Ms Truss as she stood as a parliamentary candidate.

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Ms Truss, who stepped down as prime minister in under two months in charge, lost the South West Norfolk seat she had held since 2010 to Labour’s Terry Jermy in last year’s election.

Sir Keir’s spokesman said the prime minister has no plans to “moderate his language” based on the letter.

He also questioned whether Ms Truss will be writing to the “millions of people up and down the country” who shared Sir Keir’s view.

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The letter also says it is “false” to claim the mini budget crashed the economy and provides details of a definition of “crash of the economy” by Dr Andrew Lilico, an expert from right-wing thinktank the Institute of Economic Affairs and managing director of economic consultancy Europe Economics.

Market movement following the mini budget did not constitute a “crash”, the letter says, and accuses Sir Keir of displaying an “ignorance of basic economics” by doing so.

LETTER
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The letter calls for Sir Keir Starmer to stop saying Liz Truss crashed the economy

Following the mini budget, which included £45bn of unfunded tax cuts, the UK government’s long-term borrowing costs rose sharply by 0.3 percentage points over a day.

The pound then fell to record lows against the dollar, and there was another sharp rise in the cost of long-term government borrowing by 0.5 percentage points after then chancellor Kwasi Kwarteng hinted there would be further tax cuts.

This led to rising mortgage rates, with hundreds of products withdrawn, and an impact on UK pension funds.

Ms Truss’ lawyers blamed the interest rate changes on the Bank of England, “in particular by its poor handling of the liability-driven investment bonds (LDI) crisis, and its regulatory failures”.

It points out the Bank of England is independent of government and says: “Thus the relevant rate changes were not ’caused’ by our client.

“These facts were clear as early as May 2024, if not before.”

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‘Do you take any blame for your premiership?’

The letter argues there was “no rise in unemployment…no sustained loss of wealth”, and no “enduring economic impacts”.

It says Ms Truss and the mini budget did not play “a significant causal role in the financial market volatility of September/October 2022” and said almost everything, in fiscal terms, had been announced before the mini budget.

The letter requests Sir Keir “immediately cease and desist” from repeating she crashed the economy on an “amicable basis”.

“This request is made in the context of the basic levels of civility which is due between senior politicians, and we trust that you will respond accordingly,” the letter says.

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