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The energy price cap is to fall by £20 a month, the industry regulator has announced, but households are to face an additional “temporary” charge to help suppliers support struggling customers with record levels of debt.

Ofgem confirmed a 12% price cap reduction will take effect from 1 April, taking the annual energy bill for a typical household paying by direct debit for gas and electricity to £1,690.

The current level, in place from January to March, is £1,928.

The fall reflects lower wholesale prices, with natural gas costs over the peak winter season falling across Europe due to higher stockpiles.

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Energy price cap reduction – live reaction
Why the cap has come down in ‘new normal’

A mild winter has been a factor in the drop.

The adjustment by Ofgem, while some relief for household budgets squeezed by the tough economy, still leaves the cap more than 50% up on pre-crisis levels.

The regulator confirmed alongside the cap figure that it was taking action to tackle a record £3.1bn in bill arrears, though prepayment meter customers would not be affected.

A handheld SSE smart meter for household energy usage is held next to an energy-efficient LED light bulb. Families across Great Britain will find out on Friday how tough energy bills will be this winter but they may have to wait to discover what the Government will do to help Picture date: Thursday August 25, 2022.
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Ofgem’s plans aim to bolster support for energy customers in debt to their suppliers. Pic: PA

“To address this challenge in the short-term, Ofgem will allow a temporary additional payment of £28 per year (equivalent to £2.33 per month) to make sure suppliers have sufficient funds to support customers who are struggling”, its statement said.

“This will be added to the bills of customers who pay by direct debit or standard credit and is partly offset by the termination of an allowance worth £11 per year that covered debt costs related to the COVID pandemic.”

Ofgem said its wider action would include further closing the gap between the higher charges that prepayment meter customers pay and what most other households face.

It said those on prepayment meters would save around £49 per year while direct debit customers would pay £10 per year more.

The watchdog said that the new figures, taken together, meant that bills would still fall to their lowest level since Russia’s invasion of Ukraine in February 2022.

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Ofgem says lower unit charges will mean that bills will fall for everyone in April, despite the debt aid elements. Pic: iStock

Russia’s vast gas supplies to the continent were shut down shortly after its military action began, forcing a scramble for replacement volumes.

Much of the void has been filled by additional supplies from Norway and heightened shipments of liquefied natural gas (LNG).

Market experts have warned that a return to pre-crisis energy prices is unlikely to occur given the new realities over the source of supply hampered, in the short term at least, by attacks on shipping in the Red Sea that have forced LNG cargos to make longer journeys.

The trend of higher prices has led to questions over whether the price cap, initially introduced to prevent rip-off charges, has become a barrier to competition. Ofgem is working with the government to address the cap’s future.

It is now utilised by the vast majority of homes in the wake of the supplier crisis that began in 2021 that saw dozens of operators collapse, including Bulb.

Fixed deals have been hard to come by ever since but there are some that have undercut the price cap.

Read more:
What is the price cap – and how will it affect my bills?

Research for professional services firm KPMG, released separately on Friday, suggested that 48% of households believed the price cap was a barrier to fixed-term offers by suppliers.

A third of respondents said they no longer shopped around because of the cap.

Price comparison site uSwitch said Ofgem’s wider action on elements of the price cap bill should help improve the volume of offers.

Its director of regulation, Richard Neudegg, said: “Consumers have been patiently waiting for better tariff choices, and many are desperate to take advantage of cheaper rates.

“If you are on a standard variable tariff, now is the time to start keeping an eye out for deals.

“The end of the Market Stabilisation Charge also on 1st April will be a positive step, taking out an unnecessary premium on deals.

“However, Ofgem’s decision to extend the Ban on Acquisition-only Tariffs for another year is a gamble.

“Although this could be cut to six months, while it’s in play, fixed deals risk being more expensive than they would otherwise be, at a time when customers are finally hoping to lock in some certainty.”

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‘We need help’: Workers say shoplifting is ‘out of control’ as brazen thefts explode

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'We need help': Workers say shoplifting is 'out of control' as brazen thefts explode

A woman casually walks into a convenience store and starts filling a bread crate with goods from one of the aisles.

A shop assistant tries to stop her, but she shrugs him off, undeterred. With the crate now full of items, she leaves without paying.

It is a scenario that is played out day in and day out across Britain, as retailers warn the surge in shoplifting is now “out of control”.

A Nisa supermarket storefront
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Four in five store owners tell Sky News they’ve experienced shoplifting in the last week.

I’m sitting in the security office of a busy city centre shop and I’m watching as a schoolboy walks in and helps himself to a sandwich, stuffing it into his jacket.

Watching with me is shop worker Anton Mavroianu who positions himself by the main entrance waiting for the youngster to leave.

When the boy does leave, Anton demands the item back. Instead of being frozen with fear that he’s been caught, the boy laughs and walks off.

“All we can do is try to stop them,” Anton tells me. “But this is just another day for us.”

Anton Mavroianu
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Anton Mavroianu said he has been threatened with a knife while trying to stop shoplifters

A few weeks earlier, when Anton tried to stop a shoplifter who had stolen from the store, the man pulled out a knife and tried to attack him.

This terrifying incident is an example of the very real threat posed to shop workers as they try to stem the tide of brazen thefts.

Shoplifting offences recorded by police in England and Wales have risen to the highest level in 20 years.

The British Retail Consortium (BRC) also reports that theft-related losses cost the retail sector millions each year, adding strain to an industry already grappling with post-pandemic recovery and economic uncertainty.

For small businesses, which lack the resources of larger chains, persistent theft can threaten their very survival.

Read more on shoplifting:
Why legion of shoplifters is causing an explosion in crime
Theft and fraud costs Co-op nearly £40m in just 6 months

CCTV of a Nisa supermarket

Ricky Dougall owns a chain of convenience stores and says shoplifting cost his business around £100,000 last year.

“Shoplifting is a huge problem and it is what stops us from growing the business.

“People come in and help themselves like they own the place and when you call the police, most of the time, they don’t turn up.”

Supermarket owner Ricky Dougall - who says shoplifting cost his business around £100,000 last year
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Ricky Dougall said part of the problem is how shoplifting is classified during sentencing

Mr Dougall says part of the problem is how this type of crime is classified.

Sentencing guidelines for thefts of under £200, so-called “low level shoplifting”, were relaxed in 2016. That is being blamed for the surge in cases.

An exclusive Sky News and Association of Convenience Stores survey shows that 80% of shopkeepers surveyed had an incident of retail crime in the past week.

The poll also found 94% of shopkeepers say that in their experience, shoplifting has got worse over the last year, with 83% not confident that the police will take action against the perpetrators of retail crime on their premises.

Paul Cheema from the Association of Convenience Stores says retailers are looking to Government to support them.

“I would say officials do not give a s*** about us retailers,” he tells me. “The losses are too big and I don’t think we can sustain that anymore.

“I would urge Keir Starmer to come and meet us and see up close the challenges that we are facing.”

Retailers have responded by investing heavily in security measures, from advanced surveillance systems to hiring more security staff.

But these investments come at a cost, often passed down to consumers through higher prices.

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I get chatting to Matt Roberts, head of retail in the store I am in. He worries about shoplifting, but he worries about the staff more.

“I would imagine they dread coming to work because they’re always on tenterhooks wondering whether something is going to happen today, whether they are going to have to try and confront someone.

“It’s a horrible feeling. It’s out of control and we need help.”

Matt Roberts, head of retail at a Nisa supermarket
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Matt Roberts says he is concerned for his staff, who have to confront shoplifters

The government has acknowledged the urgency of the issue. Home Secretary-led discussions with retail associations and law enforcement are underway to craft a comprehensive strategy.

In the King’s Speech, the government outlined details of a Crime and Policing Bill, which promised to “introduce stronger measures to tackle low level shoplifting”, as well as introducing a separate offence for assaulting a shop worker.

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Two-thirds of teens living with fear of violence, charity warns

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Two-thirds of teens living with fear of violence, charity warns

Children do not feel safe, a charity has warned, as a survey finds two-thirds of teens in England and Wales have a fear of violence.

The charity, which surveyed 10,000 children aged 13-17, found that 20% of teenagers have been victims of violence in the past 12 months.

“I think what shocked me most is how this is a problem that affects all of our children,” said Jon Yates, CEO of the Youth Endowment Fund.

“We found that two-thirds of all teenage children are afraid. And that fear is pretty real for a lot of them.”

He said it’s a fear so palpable that many teenage children are changing their patterns of behaviour, or have had it influence their daily decisions.

One third of teenage children – 33% – reported avoiding areas, whilst around 27% alter their travel routes or avoid public transport altogether to stay safe.

More worryingly, however, some say the fear of violence has led to mental health challenges, with 22% reporting difficulties sleeping, reduced appetite and concentrating in school.

More on Children

Weapon carrying is also a concern for the charity, especially among vulnerable groups.

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From September: Young gangs of Wolverhampton

In England and Wales, 5% of all 13-17 year olds reported carrying a weapon in the past year, but that figure jumps to 21% for those suspended from school and 36% for children who have been excluded from school.

But Mr Yates said “shockingly” only 12% of children who repeatedly commit violence get any sort of support.

“That’s madness,” he said.

Jay*, 23, from Birmingham said depending on your environment, sometimes violence is hard to avoid.

“I’ve had friends be shot, I’ve got friends who have been stabbed, I had a friend die last month to be fair,” Jay told Sky News.

He said it is “damaging” because you never really get the opportunity to “heal”. He is now being supported by the charity Project Lifeline, but says before then it was difficult to find any hope.

“If you don’t have hope,” Jay added, “you can’t really get anywhere. It’s about finding that hope.”

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Mark Rodney, CEO of Lifeline Project, mentors at-risk young children and said he has learned that “not only the perpetrator carries the knife, the victim sometimes carries the knife”.

“And not only the perpetrator does the killing,” he added. “The victim sometimes does the killing, because that’s where we’re at.”

He said far too many families ask themselves “is my child safe going to school or coming home from school?” and adds the government must “actually start addressing people’s concerns”.

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From September: Home Sec vows to halve knife crime

The report also found that in 93% of cases where teenage children repeatedly harm others, adults intervene with punishments such as school discipline or police involvement.

However, only 12% of these children are offered support aimed at addressing the root causes of violence and preventing further harm.

Mr Yates said: “They go to school, they do something violent. They get excluded.”

He added: “We need to be much better at saying, ‘we’re not going to lose that child. We’re going to keep providing support to them. We’re going to keep providing a mentor’.

“Instead, we let them fall through the cracks”.

A government spokesperson said: “Halving knife crime in a decade is a clear mission this government has set out.

“It is vital to protect vulnerable young people who are too often the victims or perpetrators of this crime.”

*names have been changed

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Jeremy Clarkson says government should ‘back down’ on farmers’ inheritance tax as he joins protest

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