As the latest reduction in the energy price cap takes effect, households are being warned of a big lift in bills ahead due to higher wholesale gas prices.
The cap, which limits what suppliers can charge per unit of energy, fell by 7% overnight in the wake of the latest three-month review by industry regulator Ofgem.
The reduction meant that typical 12-month bills will be around £500 cheaper than a year ago.
It left the average bill at £1,568 – a figure that will apply until the result of the next review takes effect in October.
However, a report by the Energy & Climate Intelligence Unit (ECIU) said on Monday that consumers should brace for an additional hit of up to £600 over the coming winter, largely due to higher wholesale prices.
It pointed to a possible £200 price cap hike from October on the back of some analyst calculations, suggesting it was plausible the total could remain around that level until June.
One calculation, by experts at Cornwall Insight and released on Friday, predicted a 10% – or £155 – increase from 1 October to £1,723 a year but said there remained uncertainty on the market path ahead.
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Party energy plans compared
Consumer groups say there is an alternative to the price cap, pointing to a growing number of fixed-rate deals on the market following a dearth of competition in recent years.
European wholesale costs are again elevated for the time of year based on pre-energy shock norms.
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Recent pressures have included strong competition from Asia, particularly China, for liquefied natural gas (LNG).
That has replaced some of the Russian natural gas volumes that were stripped away in the wake of the invasion of Ukraine in February 2022.
A planned extension of the European Union’s sanctions regime against Russia will see its LNG exports targeted for the first time – potentially placing further pressure on supply across the continent.
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UK household costs for both gas and electricity stood at an average of just below £1,090 ahead of the Russia-Ukraine war.
The ECIU report said: “By September 2025, the average household could have paid an extra £2,600 on energy bills during the ongoing gas crisis.
“With the government also spending £1,400 per home earlier in the crisis, the total extra costs could be £4,000 per home, and counting.”
Energy has been among the big battlegrounds of the election.
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The price of going green? Unions say it’s workers’ jobs
Much of the debate has centred on costs but the impact of gas use in particular has fuelled argument too on the UK’s climate commitments.
Dr Simon Cran-McGreehin, head of analysis at ECIU, said: “The UK’s high dependence on gas for electricity generation and heating has cost bill payers £2,000 so far during the gas crisis and the economy as a whole tens of billions of pounds.
“Common sense measures like investing in insulating the poorest homes, switching to electric heat pumps and fast-tracking British renewables will leave us less vulnerable to the whims of the international gas markets.
“North Sea gas output is declining so unless we make the switch we’ll be ever more dependent on foreign imports.
“The maths is clear, when it comes to energy independence, new drilling licences are a side show making a marginal difference compared to the immense quantity of homegrown energy that offshore wind and other renewables can generate.”
Emily Seymour, the editor of Which? Energy, said: “Consumers will be relieved to hear that the price cap is dropping by around £122 for the typical household from 1st July.”
She added: “With the price cap predicted to rise again in October, many consumers will also be wondering whether to fix their energy deal.
“There’s no ‘one size fits all’ approach but the first step is to compare your monthly payments on the price cap to any fixed deals to see what the best option is for you.
“As a rule of thumb, if you want to fix, we’d recommend looking for deals as close to the July price cap as possible, not longer than 12 months and without significant exit fees.”
Several demonstrators have been detained after rival groups faced off over a hotel accommodating asylum seekers in north London, with police breaking up brief clashes.
The Metropolitan Police has since imposed conditions on the protest and counter-protest outside the Thistle City Barbican Hotel in Islington.
The protest was organised by local residents under the banner “Thistle Barbican needs to go – locals say no”.
The group of several hundred people waved union flags and banners, and one man chanted: “Get these scum off our streets.”
Image: Anti-immigration protesters waved Union Jack flags. Pic: PA
A larger group staged a counter demonstration to voice support for asylum seekers, bearing a banner that read: “Refugees are welcome.”
People inside the hotel, believed to be migrants, watched on, with some waving and blowing kisses from the windows.
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Image: People believed to be asylum seekers waved the hotel windows. Pic: PA
Image: Pro-immigration protesters gathered by the Thistle City Barbican Hotel. Pic: PA
A man wearing an England football shirt was detained by police after getting into an altercation with officers.
There have been nine arrests so far, seven of which were for breaching conditions police put on the protests under the Public Order Act.
Rival groups separated by police
Another protest was scheduled in Newcastle on Saturday, outside The New Bridge Hotel, as anti-migrant sentiment ripples through some communities around the country, also flaring up recently in Epping.
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4:09
Last week: Protesters divided over migrant hotels
The counter-protest in London was organised by local branches of Stand Up To Racism, and supported by former Labour leader and Islington North MP Jeremy Corbyn.
Other community groups including Finsbury Park Mosque and Islington Labour Party were also involved.
Groups online that backed the original protest include “Patriots of Britain” and “Together for the Children”.
At one point, a large group of masked protesters dressed in black, calling themselves anti-fascists, appeared from a side street and marched towards the rival group outside the hotel.
The two groups briefly clashed before police rushed in to separate them.
Image: Pic: PA
Image: Supporters of local protest group ‘Thistle Barbican needs to go – locals say no’. Pic: PA
Why are asylum hotels used?
The government is legally required to provide accommodation and subsistence to destitute asylum seekers while their claims are being decided, most of whom are prohibited from working.
A jump in the use of hotels since 2020 has been attributed to the impacts of the COVID pandemic, a backlog in unresolved asylum cases, and an increase in the number of migrants crossing the Channel in small boats.
However, the number of asylum seekers living in hotels has fallen recently, from 38,079 at the end of 2024 to 32,345 at the end of March 2025, according to the Refugee Council.
How police tried to keep groups apart
The police imposed conditions on both groups in London to prevent “serious disorder” and minimise disruption to the community.
Those in the anti-asylum hotel protest were told to remain within King Charles Square, and to gather not before 1pm and wrap up by 4pm.
Those in the counter-protest were to required to stay in an area in Lever Street, and assemble only between 12pm and 4pm, but were still in eye and ear shot of the other group.
Chief Superintendent Clair Haynes, in charge of the policing operation, said: “We have been in discussions with the organisers of both protests in recent days, building on the ongoing engagement between local officers, community groups and partners.
“We understand that there are strongly held views on all sides.
“Our officers will police without fear or favour, ensuring those exercising their right to protest can do so safely, but intervening at the first sign of actions that cross the line into criminality.”
Meanwhile, the protest in Newcastle was promoted by online posts saying it was “for our children, for our future”.
The “stop the far right and fascists in Newcastle” counter-protest was organised by Stand Up To Racism at the nearby Laing Art Gallery.
A man has been remanded into custody charged with child cruelty offences after allegedly lacing sweets with sedatives.
Jon Ruben, 76, of Ruddington, Nottinghamshire, appeared at Leicester Magistrates’ Court on Saturday after youngsters fell ill at a summer camp in Stathern, Leicestershire.
He has been charged with three counts of wilfully assaulting, ill-treating, neglecting, abandoning or exposing children in a manner likely to cause them unnecessary suffering or injury to health.
The charges relate to three boys at the camp between 25-29 July.
Image: The scene in Stathern, Leicestershire. Pic: PA
Ruben spoke only to confirm his name, age and address.
Police received a report of children feeling unwell at a camp being held at Stathern Lodge, near Melton in Leicestershire, last Sunday.
Officers said paramedics attended the scene and eight boys – aged between eight and 11 – were taken to hospital as a precaution, as was an adult. They have since been discharged.
Police said the “owners and operators of Stathern Lodge are independent from those people who use or hire the lodge and are not connected to the incident”.
Leicestershire Police has referred itself to the Independent Office for Police Conduct, after officers initially reported the incident as having happened on Monday, only to later amend it to Sunday.
It is still unclear when officers responded and whether that is why the watchdog referral has been made.
Ruben will next appear at Leicester Crown Court on 29 August.
Addressing the City Academy Voices choir directly, the bishop of Fulham said: “I write to apologise for the distress and offence I caused in bringing the concert to a premature end.
“This should not have happened … I also apologise for remarks which were made in haste, and which have understandably caused hurt and distress.”
Image: The bishop, in his dressing gown, gave the choir a dressing down
Mr Baker had demanded for the performance to stop because it was 10pm – and says he didn’t realise the choir had booked the church until 11pm.
In the statement obtained by Sky News, he added: “I have lived here on site at St Andrew’s for 10 years, for much of which City Academy has rehearsed and performed here.
“You have been, and continue to be, welcome – and I hope that you will be able to continue the relationship with us.
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“I can give you every assurance that the events of Friday evening will not recur, and I apologise again to performers (especially those unable to perform at the end of the evening) and the audience alike.”
Image: The choir performed their last song
The choir was performing to a 300-strong audience in Holborn when the lights were suddenly turned off, with Mr Baker declaring the concert was “over”.
A church employee then asked the crowd to leave quietly and for the musicians to step down from the stage, attracting boos from the audience.
The choir went on to perform one last song, an A cappella version of ABBA’s Dancing Queen, before bringing their show to a close.
One member of the audience, who was attending with his 10-year-old daughter, told Sky News he initially thought the interruption was a staged joke.
Benedict Collins had told Sky News: “This work deserves respect, not to be disparaged as a ‘terrible racket’. The people here had put their heart and soul into it.
“The bishop cut them off in midstream, preventing soloists who had worked their hardest from singing – and preventing the audience, which included people of all ages, from enjoying it to the end.”
The choir told Sky News it was “upsetting” that they were unable to finish their show as planned, but “hold no hard feelings and wish the bishop well”.
A spokesperson added: “If anyone is thinking of joining one of our choirs, the City Academy Voices rehearse on Mondays in central London. Dressing gowns optional.”