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The energy price cap will rise to an average annual £1,717 from October, the industry regulator has confirmed as the clock ticks down to the loss of winter fuel payments for millions of pensioners.

The new figure represents a 10% a year – or £12 per month – leap in the typical sum households face paying for gas and electricity when using direct debit.

Ofgem said that the rise was largely due to higher wholesale gas prices and it urged bill-payers to “shop around” as there are fixed rate deals on the market that could offer savings.

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Its decision means the cap, which is adjusted every three months and limits what suppliers can charge per unit of energy, will remain around £500 up on the average annual bill levels seen before Russia’s invasion of Ukraine.

It is, however, set to be £117 lower than the October 2023 level.

That gap may partly explain why chancellor Rachel Reeves likely opted to end winter fuel payments – worth up to £300 annually – for around 10 million pensioners not in receipt of means-tested benefits including pension credit.

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She blamed the measure, revealed last month, on the need to help plug a “black hole” in the public finances left by the Conservatives but has faced a widespread backlash including from within Labour’s own ranks.

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Cuts to pensioners’ winter fuel payments

Charities warn that heating costs remain punitive and a key plank of the continuing cost of living crisis that will force many to choose between heating and eating this winter.

Research by Citizens Advice suggests one in four could be forced to turn off their heating and hot water amid record levels of energy debt.

Energy Secretary Ed Miliband admitted the rise in the cap was “deeply worrying” but defended the cuts.

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Energy price cap rise ‘worrying’ for families

“The truth is that the mess that was left to us in the public finances is what necessitated that decision around winter fuel payment and us focusing it on those who need it the very most.

“That’s why this government is also driving throughout the coming months to get the people, the 880,000 pensioners who are entitled to pension credit and not getting it to try and get them to take it up, to make them aware of this so they can get the winter fuel payment as well.”

An updated forecast issued by the energy research consultancy Cornwall Insight predicted a further 3% hike in the cap during the peak use months of January-March to £1,762.

SHOULD I TAKE A FIXED DEAL?

Cast your mind back to before the COVID pandemic and you will remember that a reluctance among households to switch suppliers helped give birth to the energy price cap.

The majority of homes were on so-called default tariffs – sometimes through no choice of their own – but those able to choose and the more financially savvy had a fixed rate deal, often changing their supplier once a year to bring down their bills.

But they largely disappeared from view after dozens of suppliers collapsed amid a series of cost shocks, latterly caused by the invasion of Ukraine by Russia, forcing the bulk of households to hunker down and rely on the price cap.

It certainly is not perfect and is ripe for reform, as Ofgem has suggested again today.

A feature of the energy market this year has been the return of fixed rate deals.

They are fewer in number but can offer certainty on what you will pay over the term of the deal.

Ofgem figures show that around one million more households have taken that opportunity since April, bringing the total to five million.

Are they worth it? Is it too late?

The price comparison site Uswitch claimed today that savings of about £125 on the October price cap level are out there.

Emily Seymour, the energy editor at consumer group Which?, cautioned: “As a rule of thumb, we’d recommend looking for deals around the price of the current price cap, not longer than 12 months and without significant exit fees.”

Ofgem chief executive Jonathan Brearley said: “We know that this rise in the price cap is going to be extremely difficult for many households. Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.

“I’d also encourage people to shop around and consider fixing if there is a tariff that’s right for you – there are options available that could save you money, while also offering the security of a rate that won’t change for a fixed period.

“We are working with government, suppliers, charities and consumer groups to do everything we can to support customers, including longer term standing charge reform, and steps to tackle debt and affordability.

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What is GB Energy and what will it do?

“Options such as changing how standing charges are paid and getting suppliers to offer more tariff choices and give customers more control are all on the table, but there are no silver bullets.

“Any change could leave some low-income households worse off, so it’s important we hear views on our proposals and continue working with the government to see what targeted support could help customers.

“Ultimately the price rise we are announcing today is driven by our reliance on a volatile global gas market that is too easily influenced by unforeseen international events and the actions of aggressive states. Building a homegrown renewable energy system is the key to lowering bills and creating a sustainable and secure market that works for customers.”

The government’s energy strategy includes measures to eradicate the country’s dependence on natural gas for heating and electricity through a greater commitment to wind power, including onshore.

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Starmer confident over lower bills

The hope is for lower bills in the future.

Jess Ralston, head of energy at the Energy and Climate Intelligence Unit said: “A lack of progress on energy efficiency and heat pumps means that our reliance on gas hasn’t fallen much in recent years, despite the volatility in the international markets forcing bills to skyrocket.

“The new government has made steps on renewables, but not confirmed its plans for home heating or insulation yet, and there is clearly no time to waste.

“Unless we start to reduce our demand for gas, we will only see our dependence on foreign imports rise. Oil and gas from the North Sea is sold on international markets to the highest bidder so doesn’t help with our bills or energy independence.

“With the removal of the winter fuel payment for some pensioners at the same time as bills going up, it’s likely that some will struggle and it remains to be seen if the government will bring in measures to support those worst hit by the removal of winter fuel payment.”

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Tourist tax to be introduced across England

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Tourist tax to be introduced across England

Mayors will be able to introduce tourist taxes across England, the government has announced.

A day before the budget, communities secretary Steve Reed said mayors will be given the power to impose a “modest” charge on visitors staying overnight in hotels, bed and breakfasts, guest houses and holiday lets.

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The money raised is intended to be invested in local transport, infrastructure and the visitor economy to potentially attract more tourists.

Regional Labour leaders such as London Mayor Sir Sadiq Khan and Greater Manchester’s Andy Burnham have been calling for the measure.

However, the hospitality industry condemned the move as “damaging”.

The visitor levy will bring England in line with Scotland and Wales, which are already introducing tourist taxes.

More on Budget 2025

Officials said it would bring English cities into line with other tourist destinations around the world, including New York, Paris and Milan, which already charge a tourist tax.

They said research showed “reasonable” fees had a “minimal” impact on visitor numbers.

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The budget vs your wallet: How the chancellor could raise billions

Sir Sadiq said it is “great news for London” and said the tax will “directly support London’s economy and help cement our reputation as a global tourism and business destination”.

The Greater London Authority previously estimated a £1 a day levy could raise £91m, and a 5% levy could raise £240m.

Mr Burnham said the tax will allow Greater Manchester to “invest in the infrastructure these visitors need, like keeping our streets clean and enhancing our public transport system through later running buses and trams, making sure every experience is a positive and memorable one”.

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However, Lord Houchen, the Conservative Tees Valley mayor, said he will not introduce a tourist tax, adding: “Thanks, but no thanks.”

Conservative shadow local government secretary Sir James Cleverly branded it “yet another Labour tax on British holidays, pushing up costs for hard-pressed families, and yet another kick to British hospitality”.

Kate Nicholls, chair of UKHospitality, warned the “damaging holiday tax” could cost the public up to £518 million, adding: “Make no mistake – this cost will be passed directly on to consumers, drive inflation and undermine the government’s aim to reduce the cost of living.”

The plans will be subject to a consultation running until 18 February, which will include considering whether there should be a cap on the amount.

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Man arrested in connection with massive illegal waste dump in Kidlington, Oxfordshire

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Man arrested in connection with massive illegal waste dump in Kidlington, Oxfordshire

A man has been arrested in connection with the large-scale illegal tipping of waste in Oxfordshire, police have said.

The 39-year-old, from the Guildford area, was arrested on Tuesday following co-operation between the Environment Agency (EA) and the South East Regional Organised Crime Unit.

Last week, the EA declared the 40ft-high mountain of waste near Kidlington a “critical incident”.

The illegal site is on the edge of Kidlington in Oxfordshire
Image:
The illegal site is on the edge of Kidlington in Oxfordshire

Anna Burns, the Environment Agency’s area director for the Thames, said that the “appalling illegal waste dump… has rightly provoked outrage over the potential consequences for the community and environment”.

“We have been working round the clock with the South East Regional Organised Crime Unit to bring the perpetrators to justice and make them pay for this offence,” she added.

“Our investigative efforts have secured an arrest today, which will be the first step in delivering justice for residents and punishing those responsible.”

Pic: PA
Image:
Pic: PA

Phil Davies, head of the Joint Unit for Waste Crime, added that the EA “is working closely with other law enforcement partners to identify and hold those responsible for the horrendous illegal dumping of waste”.

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He then said: “A number of active lines of investigation are being pursued by specialist officers.”

Sky News drone footage captured the sheer scale of the rubbish pile, which is thought to weigh hundreds of tonnes and comprise multiple lorry loads of waste.

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The EA said that officers attended the site on 2 July after the first report of waste tipping, and that a cease-and-desist letter was issued to prevent illegal activity.

After continued activity, the agency added that a court order was granted on 23 October. No further tipping has taken place at the site since.

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Graham Linehan cleared of harassment but guilty of criminal damage to trans activist’s phone

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Graham Linehan cleared of harassment but guilty of criminal damage to trans activist's phone

Father Ted creator Graham Linehan has been cleared of harassment against a trans activist but guilty of criminal damage to their phone.

The 57-year-old comedy writer, who had faced trial at Westminster Magistrates’ Court, denied both charges linked to posts made on social media and a confrontation at a conference in London in October 2024.

Summarising her judgment, District Judge Briony Clarke started by saying it was not for the court to pick sides in the debate about sex and gender identity.

She said she found Linehan was a “generally credible witness” and appeared to be “genuinely frank and honest”, and that she was not satisfied his conduct amounted to the criminal standard of harassment.

Pic: Ben Whitley/ PA
Image:
Pic: Ben Whitley/ PA

The judge said she accepted some of complainant Sophia Brooks’s evidence, but found they were not “entirely truthful” and not “as alarmed or distressed” as they had portrayed themself to be following tweets posted by the comedy writer.

While Linehan’s comments were “deeply unpleasant, insulting and even unnecessary”, they were not “oppressive or unacceptable beyond merely unattractive, annoying or irritating”, the judge said, and did not “cross the boundary from the regrettable to the unacceptable”.

However, she did find him guilty of criminal damage, for throwing Brooks’s phone. Having seen footage of the incident, the judge said she found he took the phone because he was “angry and fed up”, and that she was “satisfied he was not using reasonable force”.

The judge said she was “not sure to the criminal standard” that Linehan had demonstrated hostility based on the complainant being transgender, and therefore this did not aggravate his offence.

He was ordered to pay a fine of £500, court costs of £650 and a statutory surcharge of £200. The prosecution had asked the judge to consider a restraining order, but she said she did not feel this was necessary.

What happened during the trial?

The writer, known for shows including Father Ted, The IT Crowd and Black Books, had flown to the UK from Arizona, where he now lives, to appear in court in person.

He denied harassing Brooks on social media between 11 and 27 October last year, as well as a charge of criminal damage of their mobile phone on 19 October outside the Battle of Ideas conference in Westminster.

The trial heard Brooks, who was 17 at the time, had begun taking photographs of delegates at the event during a speech by Fiona McAnena, director of campaigns at Sex Matters.

Giving evidence during the case, Linehan claimed his “life was made hell” by trans activists and accused Brooks, a trans woman, of being a “young soldier in the trans activist army”.

He told the court he was “angry” and “threw the phone” after being filmed outside the venue by the complainant, who had asked: “Why do you think it is acceptable to call teenagers domestic terrorists?”

Brooks told the court Linehan had called them a “sissy porn-watching scumbag”, a “groomer” and a “disgusting incel”, to which the complainant had responded: “You’re the incel, you’re divorced.”

The prosecution claimed Linehan’s social media posts were “repeated, abusive, unreasonable” while his lawyer accused the complainant of following “a course of conduct designed both to provoke and to harass Mr Linehan”.

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Following the judgment but ahead of sentencing, Linehan’s lawyer Sarah Vine KC said the court “would do well to take a conservative approach towards the reading of hostility towards the victim”.

She said the offence of criminal damage involved a “momentary lapse of control”, and was part of the “debate about gender identity, what it means”.

Vine said it was important “that those who are involved in the debate are allowed to use language that properly expresses their views without fear of excessive state interference for the expression of those views”.

She also said the cost of the case to Linehan had been “enormous”, telling the court: “The damage was minor; the process itself has been highly impactful on Mr Linehan.”

She requested he be given 28 days to pay the full amount.

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