How much will my bills increase now the energy price cap comes into effect

Published

3 years ago

October 1, 2022

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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.

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.

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.

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.

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.

UK

Lionesses praised after winning Women’s Euros – with bus parade confirmed this week

Published

20 hours ago

July 27, 2025

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Lionesses praised after winning Women's Euros - with bus parade confirmed this week

England fans across the country have heaped praise on the team after winning Euro 2025, with a bus parade celebration set for Tuesday.

Sarina Wiegman’s Lionesses took home their second Euros trophy in consecutive tournaments after beating Spain 3-1 on penalties in the final.

Chloe Kelly scored the winning spot-kick following two huge saves from goalkeeper Hannah Hampton, after Alessia Russo scored an equaliser to send the game to a shootout.

As it happened: England beat Spain on penalties to retain title

After England win, it was announced that an open-top bus parade will be held in London on Tuesday along The Mall, which will start at 12.10pm.

The celebrations will culminate in a stage ceremony at the Queen Victoria Memorial in front of Buckingham Palace at approximately 12.30pm

Fans can attend for free, and Sky News will broadcast it live.

‘You’ve made the nation proud’ – Starmer

Prime Minister Sir Keir Starmer was among the millions congratulating the Lionesses, posting on social media to praise the champions

“What a team. What a game. What drama,” he said.

“You dug deep when it mattered most and you’ve made the nation proud. History makers.”

The roof almost came off the Manchester clubhouse where Ella Toone started her journey

Greg Milam

Chief North of England correspondent

@GregMilamSky

Nowhere was the roar for the Lionesses louder than in the Astley and Tyldesley Miners Welfare club on the outskirts of Manchester.

The club where a five-year-old Ella Toone started her journey to England stardom, like so many places across the country, hosted nail-biting, table-thumping and, ultimately, deafening watch parties.

The roof almost came off the clubhouse when Chloe Kelly’s winning penalty went in.

Red bucket hats emblazoned with Toone’s now-famous ‘Buzzing My Head Off’ catchphrase were thrown in the air.

“Absolutely ecstatic,” said Lorraine Warwick-Ellis, who runs the pathway development for women and girls at the club.

“I was very nervous, very worried about penalties but we did it in the end.”

The success of the Lionesses has driven a huge boom in the popularity of women’s and girls football in recent years. She hopes this win will have a similar effect.

“I hope it cements the girls who are already here, keeps them engaged, and I hope it brings more girls down who want to be footballers and see that it’s open for everybody.”

It had been a pretty sombre watch for much of the game after Spain took the lead – but it erupted into life after Alessia Russo’s equaliser.

The shootout was the usual emotional rollercoaster but young fans seem to have greater faith in the Lionesses.

Among the jubilant teenagers celebrating in the clubhouse were two who have followed Toone’s path to academies at professional clubs.

“It’s unbelievable, they’re amazing, Chloe Kelly, I just don’t know what to say about her,” said Natasha Greenhouse. “We knew if it went to penalties that they’d do it.”

Tamsin Gallagher said: “They’ve done it the hard way all the way through the Euros but we all believed in them. Come on England.”

The party in Manchester and around the country and only just begun.

Prince William and Princess Charlotte, who were in attendance at St Jakob-Park in Basel, added on social media: “What a game!

“Lionesses, you are the champions of Europe and we couldn’t be prouder of the whole team. Enjoy this moment England.”

King hails Lionesses… and calls for World Cup

In a post on the official Royal Family account on X, King Charles also sent his “most heartfelt congratulations on winning the Euros 2025” to the Lionesses.

“For more years than I care to remember, England fans have sung that famous chant ‘football’s coming home’,” he said.

“As you return home with the trophy you won at Wembley three years ago, it is a source of great pride that, through sporting skill and awesome teamwork, the Lionesses have made those words ring true.

“For this, you have my whole family’s warmest appreciation and admiration. More than that, though, you have shown through your example over past weeks that there are no setbacks so tough that defeat cannot be transformed into victory, even as the final whistle looms.”

The monarch ended his statement by saying “the next task is to bring home the World Cup in 2027 if you possibly can!”

Culture Secretary Lisa Nandy added: “What an absolutely extraordinary achievement by our Lionesses – once again they have made history and united the country with pride and joy.”

Reform UK’s Nigel Farage said “well done” to the team and “what an absolutely fantastic watch,” while Conservative leader Kemi Badenoch said: “What an achievement. What a team!”

UK

Man suffers cardiac arrest onboard boat trying to reach UK

Published

2 days ago

July 27, 2025

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Man suffers cardiac arrest onboard boat trying to reach UK

A man has died after suffering cardiac arrest onboard a boat attempting to reach the UK.

The vessel turned back towards Equihen beach on the French coast yesterday morning.

A nurse tried to resuscitate the man but was unsuccessful.

French authorities have now launched an investigation into the circumstances.

A spokesperson for Doctors Without Borders, also known as MSF, has criticised authorities on both sides of the Channel.

Jacob Burns said: “Yet again we have a tragedy in the Channel, that is the consequence of the deadly, costly and ineffective security policies implemented by the UK and France.”

Later on Saturday, a lifeboat carried migrants who have made the voyage into the Port of Dover.

Photographs showed them huddled under blankets and orange life jackets on board.

Provisional statistics from the Home Office suggest almost 24,000 people have arrived on small boats in the UK so far this year.

Towns and cities across the UK have seen protests in recent days, primarily outside hotels believed to be housing asylum seekers.

UK

Women’s Euros final: The Lionesses face Spain tonight – and they’re seeking revenge

Published

2 days ago

July 27, 2025

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Women's Euros final: The Lionesses face Spain tonight - and they're seeking revenge

Here the Lionesses are again. Another final. Another showdown with Spain.

All of a sudden, what was once so anticipated and longed for can start to seem expected rather than extraordinary.

What happened to the great underachievers of world football? They are now consistently among the final two going for glory.

No one is taking that for granted.

Especially not Leah Williamson, with the chance to retain the European Championship trophy lifted three years ago at Wembley.

“The opportunity of tomorrow and what’s on offer is the best thing in football,” the England captain said. “I think we don’t necessarily carry the weight of it and how much it means to people, but we’re aware of it because it means the same to us.”

So often they were only watching other nations making finals.

England’s first was the men winning the 1966 World Cup.

England v Spain: All you need to know

Then, with the rebirth of women’s football after bans and neglect, it was the Lionesses’ turn to make it to the finals – in 1984 and 2009.

And the Three Lions had to wait until 2021 to make it to a final, losing to Italy on penalties at Wembley.

It kickstarted an incredible run of five successive years of finals for England senior teams – with another men’s Euros final defeat in 2024.

The Lionesses have led the way, bringing football home by defeating Germany in the Euro 2022 final at Wembley.

They just missed out on going one better when reaching a first Women’s World Cup final a year later.

Now, in Basel, comes the chance for revenge against Spain – even though no one in the England camp is saying that, publicly at least, in Switzerland.

Especially knowing how challenging a task it is coming up again against Aitana Bonmati and Alexia Putella – the recent winners of football’s biggest individual honours.

But this is Spain’s first Euros final.

And there is some fear from the world champions at England’s grit and resolve to produce comebacks late in the quarter-finals and semi-finals – with 19-year-old Michelle Agyemang’s goals integral to the fightbacks.

Spain captain Irene Paredes reflected yesterday on how the Lionesses can flip a result late on.

But she was also discussing how their World Cup win was tarnished by the on-pitch kiss that led to former Spanish federation president Luis Rubiales being convicted of a sexual assault on striker Jenni Hermoso.

It sparked a wider clamour in Spain for improved rights and respect for women.

“Since then [2023] we took big steps forward,” Paredes said.

“I think this idea is disappearing from society. I still believe we have to continue opening doors… we’re a reference for boys and girls in society, but we still have things to do.”

It is a reminder that while tonight is about collecting silverware, both England and Spain know that emerging as champions can drive further growth in women’s football back home.

Amid it all, they’ll try to savour just what reaching a final means and how rare they are – until recently for English and Spanish women.