A household energy supplier has failed, weeks after it attracted attention from regulators.

Rebel Energy, which has around 80,000 domestic customers and 10,000 others, had been the subject of a provisional order last month related to compliance with rules around renewable energy obligations.

The company’s website said it was “ceasing to trade” but gave no reason.

Money latest: The many household bills rising today

Industry watchdog Ofgem said on Tuesday that those affected by Rebel’s demise did not need to take any action and would be “protected”.

Customers, Ofgem said, would soon be appointed a new provider under its supplier of last resort (SoLR) mechanism.

This was deployed widely in 2021 when dozens of energy suppliers collapsed while failing to get to grips with a spike in wholesale energy costs.

The last supplier to go under was in July 2022.

Ofgem said new rules governing supplier business practices since then had bolstered resilience.

These include minimum capital requirements and the ringfencing of customer credit balances.

The exit from the market by Bedford-based Rebel was announced on the same day that the energy price cap rose again to take account of soaring wholesale costs between December and January.

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Tim Jarvis, director general for markets at Ofgem, said: “Rebel Energy customers do not need to worry, and I want to reassure them that they will not see any disruption to their energy supply, and any credit they may have on their accounts remains protected under Ofgem’s rules.

“We are working quickly to appoint new suppliers for all impacted customers. We’d advise customers not to try to switch supplier in the meantime, and a new supplier will be in touch in the coming weeks with further information.

“We have worked hard to improve the financial resilience of suppliers in recent years, implementing a series of rules to make sure they can weather unexpected shocks. But like any competitive market, some companies will still fail from time to time, and our priority is making sure consumers are protected if that happens.”

Harrods is urging lawyers acting for the largest group of survivors of abuse perpetrated by its former owner to reconsider plans to swallow a significant chunk of claimants’ compensation payouts in fees.

Sky News has learnt that KP Law, which is acting for hundreds of potential clients under the banner Justice for Harrods, is proposing to take up to 25% of compensation awards in exchange for handling their cases.

In many cases, that is likely to mean survivors foregoing sums worth of tens of thousands of pounds to KP Law, which says it is working for hundreds of people who suffered abuse committed by Mohamed al Fayed.

Money latest: Boost for holidaymakers amid ‘awful April’ bill hikes

Under a redress scheme outlined by the London-based department store on Monday, which confirmed earlier reports by Sky News, claimants will be eligible for general damages awards of up to £200,000, depending upon whether they agree to a psychiatric assessment arranged by Harrods.

In addition, other payments could take the maximum award to an individual under the scheme to £385,000.

A document published online names several law firms which have agreed to represent Mr al Fayed’s victims without absorbing any of their compensation payments.

KP Law is not among those firms.

Theoretically, if Justice for Harrods members are awarded compensation in excess of the sums proposed by the company, KP Law could stand to earn many millions of pounds from its share of the payouts.

A Harrods spokesperson told Sky News on Tuesday: “The purpose of the Harrods Redress Scheme is to offer financial and psychological support to those who choose to enter the scheme, rather than as a route to criminal justice.

“With a survivor-first approach, it has been designed by personal injury experts with the input of several legal firms currently representing survivors.

“Although Harrods tabled the scheme, control of the claim is in the hands of the survivors who can determine at any point to continue, challenge, opt out or seek alternative routes such as mediation or litigation.

“Our hope is that everyone receives 100% of the compensation awarded to them but we understand there is one exception among these law firms currently representing survivors who is proposing to take up to 25% of survivors’ compensation.

“We hope they will reconsider given we have already committed to paying reasonable legal costs.”

Responding to the publication of the scheme on Monday, KP Law criticised it as inadequate, saying it “does not go far enough to deliver the justice and accountability demanded by our clients”.

“This is not solely a question of compensation but about justice and exposing the systematic abuse and the many people who helped to operate it for the benefit of Mohamed al Fayed and others.”

Seeking to rebut the questions raised by Harrods about its fee structure, KP Law told Sky News: “KP Law is committed to supporting our clients through the litigation process to obtain justice first and foremost as well as recovering the maximum possible damages for them.

“This will cover all potential outcomes for the case.

“Despite the Harrods scheme seeking to narrow the potential issues, we believe that there are numerous potential defendants in a number of jurisdictions that are liable for what our clients went through, and we are committed to securing justice for our client group.

“KP Law is confident that it will recover more for its clients than what could be achieved through the redress scheme established by Harrods, which in our view is inadequate and does not go far enough to compensate victims of Mr al Fayed.”

The verbal battle between Harrods and KP Law underlines the fact that the battle for compensation and wider justice for survivors of Mr al Fayed remains far from complete.

The billionaire, who died in 2023, is thought to have sexually abused hundreds of women during a 25-year reign of terror at Harrods.

He also owned Fulham Football Club and Paris’s Ritz Hotel.

Harrods is now owned by a Qatari sovereign wealth fund controlled by the Gulf state’s ruling family.

The redress scheme commissioned by the department store is being coordinated by MPL Legal, an Essex-based law firm.

Last October, lawyers acting for victims of Mr al Fayed said they had received more than 420 enquiries about potential claims, although it is unclear how many more have come forward in the six months since.

Many household bills are rising from today – ranging from energy prices and council tax to mobile phone contracts and broadband.

Coinciding with the new financial year, from today there will be higher bills for:

• Energy
• Broadband, mobile phone and TV licence
• Car tax
• Water
• Stealth taxes
• Stamp duty
• Council tax

The Sky News Money blog outlined the hikes – and how you could potentially beat them – in one of its long read features below.

You can read more from the Money blog as well as reactions to today’s increased bills here.

Cost of living calculator: See how much your bills are going up

ENERGY BILLS

The average annual energy bill will rise to £1,849 as industry regulator Ofgem increases the price cap for the third time in a row.

The new figure represents a 6.4% a year – or £9.25 per month – increase in the typical sum the vast majority of households face paying for gas and electricity when using direct debit.

You can read more about the changes and why they’re happening here.

Only those on fixed-rate deals – around 11 million homes – will see no change until their current term expires. An extra four million homes have fixed the cost of energy units since November, Ofgem said.

Standing charges – daily fixed fees to connect to a gas and electricity supply which vary by region – are also rising for gas while dropping for electricity, but it depends on where you live.

So should you fix?

Consumer expert Martin Lewis says that, based on where energy prices are currently at: “If you find a fix for up to 3% more than the current (January to March) or 3% less than the new (April to June) price cap, it’s predicted you’ll save over the year compared with staying on the price cap.”

The best deal currently on the market is with Outfox the Market, which is offering a 12-month fix for 7.4% less than January’s cap and 12.9% less than April’s.

EDF is currently offering a no-exit fee fix, and Octopus is doing the same for existing customers – so if the maths work for you, these could be risk-free options.

We spoke to Emily Seymour, Which? energy editor, about switching.

“There’s no ‘one size fits all’ approach when it comes to fixing an energy deal as it will all depend on your individual circumstances,” said Seymour.

“For example, if you have an electric vehicle, you might want to look for a tariff which offers cheaper electricity overnight to charge your car.

“As a rule of thumb, we’d recommend looking for deals close to the current price cap, not longer than 12 months and without significant exit fees.”

Other help

The warm home discount provides a £150 annual reduction on energy bills.

Those wanting to receive the payment must be getting the guarantee credit element of pension credit or be on a low income with high energy costs.

The government advises: “If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.

“You’ll usually get the discount automatically if you’re eligible. You only need to apply if you’re on a low income in Scotland – contact your energy supplier to apply.”

Those on pension credit will also be eligible for the winter fuel allowance later this year – this is worth up to £150.

BROADBAND AND MOBILE

While Ofcom’s new rules banning inflation-linked contracts came into effect in January, many consumers will be on older contracts that will still see a price rise linked to inflation.

This is causing confusion among customers, so for overall clarity: Uswitch says this April’s rises are expected to add an average of £21.99 annually for those on inflation-linked contracts and up to £42 a year for those on newer “pounds and pence” plans that are subject to fixed increases.

How do you know which contract you have?

Many providers started putting customers on fixed increase contracts in 2024 – so if you started a new broadband contract recently, you may be subject to a pounds and pence price hike.

These are the dates the providers started introducing them…

• BT/EE/Plusnet: Contract started on or after 10 April 2024
• Vodafone: Contract started on or after 2 July 2024
• TalkTalk: Contract started on or after 12 August 2024
• Three Broadband: Contract started on or after 1 September 2024
• Virgin Media: Contract started on or after 9 January 2025

So if you signed up for a deal on any of the above after those dates, you should be on a fixed annual increase – but you’ll want to check your individual policy.

Here’s an overview of the hikes being implemented by major providers…

Consider switching

You might be able to avoid the rises by switching provider as cheaper deals are often available to new customers.

You should check to see if you’re out of contract first, or what the exit penalty may be.

Research by Which? shows switching providers when you’re out of contract could cut bills by up to £235 annually.

If you don’t want to leave your provider, you could also call them and try to haggle down your monthly cost.

Several broadband providers have social tariffs available, helping those on benefits access an internet connection at a lower monthly price.

According to Uswitch, two-thirds of financially vulnerable households are unaware that low-income broadband tariffs exist.

Bundling?

You may be able to get cheaper prices by bundling your phone, internet and TV services – though you need to read the small print as exit fees can be significant.

TV LICENCE

The cost of a TV licence will also go up by £5 to £174.50

The rise comes after a £10.50 rise brought the charge to £169.50 in April last year.

If you’re 75 or over and you get pension credit, or you live with a partner who does, you qualify for a free TV licence.

You can apply for it here or by calling TV Licensing on 0300 790 6071.

Those in residential care or sheltered accommodation can get a licence for £7.50, while those registered blind or living with someone who is can get a 50% discount.

TRAIN FARES

Train fares in England have increased by 4.6% as of 2 March. Railcards are also going to become more expensive, despite the record-low reliability of services.

The Welsh government matched Westminster’s cap, while Transport for Wales is applying various increases to its unregulated fares.

Meanwhile, the Scottish government will increase all ScotRail fares by 3.8% from today.

One of the best ways to beat the price hikes is by getting a railcard – and they’re not just for traditional concession groups. We outlined all the different railcards here…

How can I use a railcard to save money on my train fare?

How to beat the system

Mark Smith, who set up The Man in Seat 61 blog to help people travel cheaper and better, told Money there were various “traps” people fell into.

Tickets are normally released around 12 weeks in advance, but initially you may only see more expensive Off-Peak and Anytime tickets.

There’s often a gap of a week or two before reservations open and the much cheaper Advance fares go on sale.

Smith says you can save money by purchasing any time before your day of travel – a £30 or £40 Advance fare will then turn into an £68.60 Off-Peak one-way or a £184.70 Anytime, for example.

If you are forced to travel at peak times you should consider split ticketing. For example:

If you’re travelling at 5pm on a Monday, instead of getting a peak ticket all the way from London to Manchester, get a peak Anytime ticket to Milton Keynes and then an Off-Peak from Milton Keynes to Manchester.

Read more about split ticketing here

One final trap to avoid was exposed by a Which? investigation last year that found train station ticket machines could be much, much more expensive than buying online.

CAR TAX

Also going up is the standard rate of road tax for cars registered after April 2017.

The flat rate cost of car tax from April 2025 is £195 (so an increase of £5).

Hybrid cars get a small discount (£10) but if your vehicle had a list price of more than £40,000 when it was first sold then you may also be liable for the “luxury car tax” fee, which adds £410 to your annual costs.

You may pay less if your car was first used before 2017 – the exact amount will depend on the year a car was registered and the type of fuel it consumes.

Perhaps a bigger change is that electric vehicles (EVs) will also no longer be exempt from tax – those registered from April 2025 will pay the lowest rate of £10 in the first year, then move to the standard rate.

Feeling confused? Autotrader gives this example…

It’s April 2025 and you’re choosing between Porsche Macans, petrol or electric (lucky you). A basic petrol Macan will mean you pay £4,680 in car tax in the first year, whereas with the electric one, you’ll pay £10. After that, they’ll both go to the standard rate (£195 per year) plus the £410 Expensive Car Supplement for five years.

WATER

Possibly the most controversial of the April changes is the sizeable increase to water bills.

Bills are going up in a development that has been blamed on problems including higher borrowing costs on large levels of debt, creaking infrastructure and record sewage outflows into waterways.

However, it was reported last March that England’s private water firms made £1.7bn in pre-tax profits – up 82% since 2018-19 – prompting renewed calls for the utility to be renationalised.

The average annual water bill will rise by 26% or £123 in the next financial year alone, figures showed.

Water UK said the increases across households would also vary, depending on circumstances such as water use and whether a water meter was installed.

Get the full story here…

Water bills in England and Wales to rise by average of £10 per month

All water companies offer a social tariff for eligible customers that reduces the cost of water bills – check with your provider to see if you are eligible.

Should you get a water meter?

Martin Lewis has some simple advice on this one: if you have more bedrooms than people in the house, a water meter is likely to save you money.

If your water company says it can’t give you a meter, you can asked for an “assessed charge” – which can offer the best of both worlds. Ofwat explains yours rights here.

STAMP DUTY

Changes come into force from today and affect those in England and Northern Ireland.

The current “nil rate” band (at which you start paying) for first-time buyers will reduce from £425,000 to £300,000, while other home-buyers will also see a reduction from £250,000 to £125,000.

In London, an average first-time buyer could end up paying more than £11,000 extra from April, Santander said.

You can read more about Stamp Duty rules here

COUNCIL TAX

Some 85% of top-tier council authorities in England are set to increase council tax by just under 5%.

Additionally, Bradford, Newham, Birmingham, Somerset, and Windsor and Maidenhead have been given special permission by the government to bypass the 4.99% cap – meaning they could raise council tax by more.

Read more:
The town bracing for UK’s biggest council tax rise of almost 16%

Our data and forensics unit has been taking a look at how council finances have deteriorated here.

With the majority of councils increasing their council tax by the maximum amount this month, some households could see their bills jump significantly.

Are you eligible for a discount?

You may qualify for extra support or a reduction in your council tax bill, for example if you’re on a low income, a student, living alone or are disabled.

Another option is to have your council tax bill spread over 12 months instead of the usual 10 – this won’t save you money but could help you to budget, if your council offers this option.

You could also get your home’s council tax band reviewed, which may entitle you to a refund if you’re in the wrong band. However, you should be aware the review could lead to your property being put in a higher band.

STEALTH TAX

Expecting a pay rise?

You may be surprised to see how little translates to your pay cheque.

That’s because frozen income tax thresholds could mean that some people get pushed into higher tax brackets as their wage goes up.

Others could be pushed into paying tax on their savings by breaching the personal savings allowance – which is £1,000 tax-free interest for basic rate taxpayers.

WHAT TO DO IF YOU’RE STRUGGLING TO PAY BILLS

If you’re having trouble paying your bills, there’s lots of support out there.

Emily Seymour, from Which?, told Money: “If you’re struggling to afford any household bills such as energy, council tax, water and telecoms, the first step is always to speak to your provider and see what help is available.

“It’s important to remember that energy companies are obliged to help you if you tell them you are struggling to pay and will not disconnect you if you miss a bill payment. You could ask for a review of your payments, a reduction in your payments or a payment break, more time to pay, and access to hardship funds.

“For water and broadband, there are cheaper social tariffs available so it’s worth speaking to your provider to see if you qualify.

“If you don’t qualify for a broadband or mobile social tariff, our research shows you could still make big savings by switching providers – especially if you’re with a firm that hikes prices annually – so it’s always a good idea to compare deals at the end of your contract to find the best offer for you.”

You can check your eligibility for benefits on the government website which may allow you to access lower tariffs and contact your local council to see if you’re able to get support with water and energy bills.

There’s also charities offering help, including Citizens Advice and National Debtline, which are on hand to provide free, impartial advice.