Energy price cap falls – but Ofgem boss says it would be ‘helpful’ if govt brings back support for families
The energy price cap is going to fall in October – but the boss of Ofgem has warned families are “absolutely going to struggle” with their bills this winter.
A typical household paying by direct debit for gas and electricity will face an annual charge of £1,923 from October to December, a fall of about £150.
Despite that, millions of households could end up paying more because government support with bills – worth £66 a month – has now been withdrawn.
Energy price cap forecast
Speaking to Sky News, Ofgem chief executive Jonathan Brearley said it would be “helpful” if these subsidies were reintroduced by the government.
And he stressed that the regulator, the government and suppliers must work together to give vulnerable customers the support they need.
Downing Street has faced growing calls to explore alternatives to the price cap, such as a social tariff that would give cheaper gas and electricity to those in need.
Andrew Bowie, parliamentary undersecretary of state for nuclear and networks, told Sky News that the government “will consider any and all options moving forward”.
When asked whether the price cap will be looked at again, Mr Bowie said: “Over the period of its existence, the price cap has yielded hugely positive results for the British people.
“However, it is right that when times change, circumstances are looked at again, which is why we have a call for evidence open right now, which is why we’re reviewing how the energy market works in this country as a whole.
“We are determined to get it right moving forward.”
Citizens Advice has warned this winter could be “as bad, if not worse” than the last – and a record number of people are already behind on their energy costs.
Calling for the government to step in quickly with targeted support, it said: “The next few months will push households like these over the edge.”
Experts have warned that bills could head back above the £2,000 mark early next year.
Price cap changes announced
The price a supplier can charge for gas is falling from 6.9p to 6.89p per kilowatt hour (kWh) – with the cost of electricity dropping from 30.1p per kWh to 27.35p.
Weaker wholesale prices have led to this reduction – and Ofgem says the market is stabilising, with suppliers returning to a healthier financial position.
The price cap would have been lower still, by a further £100, if it had reflected a looming Ofgem calculation that gives a nod to reduced energy use.
The regulator has also unveiled measures to reduce costs for prepayment meter customers – alongside extra support for those at risk of disconnection from the network.
But there has also been a small increase to the earnings that energy firms can make per household – an extra £10 a year – most of which is ringfenced in the event of a supplier failure.
Ofgem says that, at the peak of the energy crisis, 30 suppliers went bust because they didn’t have enough capital in reserve to stay in business – adding £83 to the bills of all customers.
An ‘encouraging’ fall
Household consumption has fallen sharply following the bill shocks of the past 18 months.
Energy Security Secretary Grant Shapps described October’s fall in the price cap as “encouraging” – and claimed it was another milestone in the government’s promise to halve inflation.
“We are successfully driving Putin out of global energy markets so he can never again hold us to ransom, and we are boosting our energy independence to deliver cheaper, cleaner and more secure energy to British homes,” he added.
But Labour’s shadow energy and net zero secretary, Ed Miliband, claimed the latest price cap announcement “demonstrates the scandalous Tory cost of living crisis is still raging for millions of people”.
He claimed the government was siding with oil and gas companies making record profits, adding: “Higher energy bills are unfortunately here to stay under the Conservatives, even with this fall, bills are significantly higher than they were only three years ago.”
The next price cap announcement – covering January to March 2024 – will be made in three months’ time.
Read more:
Cost of living latest – as supermarket cuts prices
How will energy price cap affect your bills?
‘Millions’ will pay more
A thinktank has declared millions of the poorest households will pay more despite the price cap cut.
The Resolution Foundation blamed the withdrawal of energy support schemes and a rise in charges added to bills.
The price cap – which applies to England, Wales and Scotland – sets a limit on the amount suppliers can charge for each unit of gas and electricity used and for the privilege of being connected to the energy network. The more you use, the more you pay.
Even at the reduced cap mark, it remains about £800 above 2019 levels at a time when families are dealing with high inflation and higher housing costs – mostly as a consequence of interest rate rises by the Bank of England intended to dull the pace of price rises in the economy.
Ofgem has said it now expects suppliers to continue improving service and support their most vulnerable customers.
David Cheadle, chief operating officer at the Money Advice Trust, said it is an “extremely worrying time” for households struggling to keep up with their bills – and many consumers will face “impossible choices without further support”.
UK
Transport Secretary Louise Haigh admits pleading guilty to offence in connection with misleading police in 2014
Transport Secretary Louise Haigh has admitted pleading guilty to an offence connected with misleading the police while a parliamentary candidate in 2014, Sky News can reveal.
Sky News understands Ms Haigh appeared at Camberwell Green Magistrates’ Court six months before the 2015 general election, after making a false report to officers that her mobile phone had been stolen.
Ms Haigh said she was “mugged while on a night out” in 2013. She then reported the incident to the police and gave officers a list of items she believed had been taken – including a work mobile phone.
In a statement to Sky News, the transport secretary said she discovered “some time later” that “the mobile in question had not been taken”.
She added: “In the interim, I had been issued with another work phone.”
The transport secretary said: “The original work device being switched on triggered police attention and I was asked to come in for questioning.
“My solicitor advised me not to comment during that interview and I regret following that advice.
“The police referred the matter to the CPS and I appeared before Southwark magistrates.”
Ms Haigh continued: “Under the advice of my solicitor I pleaded guilty – despite the fact this was a genuine mistake from which I did not make any gain.
“The magistrates accepted all of these arguments and gave me the lowest possible outcome (a discharge) available.”
It’s understood her conviction is now classified as ‘spent’.
However, three separate sources claimed she made the false report to benefit personally, with two of the sources alleging she wanted a more modern work handset that was being rolled out to her colleagues at the time.
The now cabinet minister had been working as a public policy manager at Aviva, but two sources said she lost her job at the insurance firm because of the incident.
Her government profile states she left this role in 2015 before becoming the MP for Sheffield Heeley at that year’s general election.
Sky News understands the incident was disclosed in full when Ms Haigh was appointed to the shadow cabinet.
In the statement given to Sky News, the transport secretary said: “I was a young woman and the experience was terrifying.”
Conservative Party Chairman Nigel Huddleston told Sky News the revelations are “extremely concerning”.
He added: “Keir Starmer has serious questions to answer regarding what he knew and when about the person he appointed as transport secretary admitting to having misled the police.”
Before entering politics, the transport secretary was a special constable in the Metropolitan Police – serving between 2009 and 2011 in the South London Borough of Lambeth, close to where she was convicted several years later.
Louise Haigh was a special constable from 2009-2011. Pic: www.louisehaigh.org.uk
She was appointed shadow policing minister by Jeremy Corbyn in 2017 and frequently drew on her experience in the Met when challenging the Tory government on the rising demands on officers.
As transport secretary, Ms Haigh appoints members of the board that oversees the British Transport Police.
In 2019 she said that Boris Johnson had “deceived the police” and committed a “serious breach of trust” over claims he politicised serving officers during a speech in West Yorkshire.
Sir Keir Starmer promoted the Sheffield MP to shadow Northern Ireland secretary in 2020 before moving her to shadow transport secretary in 2021.
In this brief she has been an outspoken critic of the mass sacking of 800 workers by P&O Ferries in 2022.
In October, while transport secretary, she accused P&O of being a “rogue operator” and called for a boycott of its services.
The comments caused the firm’s Dubai-based owner to review a planned £1bn UK port investment – something that was re-confirmed after ministers held urgent talks with the company.
Louise Haigh has been the Member of Parliament for Sheffield Heeley since 2015
But she was publicly rebuked by Sir Keir who said her opinions were “not the view of the government”.
With connections to former Downing Street chief of staff Sue Gray, there has been speculation her cabinet role could be under threat in a future reshuffle.
Ms Gray’s son, Labour MP Liam Conlon, is Ms Haigh’s parliamentary private secretary and acts as her “eyes and ears” in parliament, while another of her former employees also worked for the former chief of staff before she was sacked after losing a power struggle within Number 10.
As transport secretary, Ms Haigh was one of a handful of cabinet ministers who complained to the Treasury about impending cuts in the budget.
She is considered to be one of the more left-wing members of the cabinet and has vowed to “rip up the roots of Thatcherism” with her plans for rail and bus reform.
In 2015, Ms Haigh was one of a number of Labour MPs to nominate Mr Corbyn for leader – a decision she later said she regretted.
UK
MasterChef’s Gregg Wallace steps down as Kirsty Wark among 13 who claim he made inappropriate sexual jokes
MasterChef host Gregg Wallace has stepped down over allegations he made a series of inappropriate sexual comments on a range of programmes over 17 years.
Broadcaster Kirsty Wark is among 13 people who have made claims, with Wallace being investigated by MasterChef’s production company Banijay UK.
In an interview with the BBC, the Newsnight presenter, who was a celebrity contestant on MasterChef in 2011, claimed Wallace used “sexualised language”.
“There were two occasions in particular where he used sexualised language in front of a number of people and it wasn’t as if it was anyone engaged with this,” Wark said.
“It was completely one-way traffic. I think people were uncomfortable and something that I really didn’t expect to happen.”
Sky News has contacted Wallace’s representative for comment.
Kirsty Wark. File pic: PA
‘Fully cooperating’
Banijay UK said the complaints were made to the BBC this week by “individuals in relation to historical allegations of misconduct while working with Gregg Wallace on one of our shows”.
The company said the 60-year-old, who has been a co-presenter and judge of the popular cooking show since 2005, was “committed to fully cooperating throughout the process”.
“Whilst these complainants have not raised the allegations directly with our show producers or parent company Banijay UK, we feel that it is appropriate to conduct an immediate, external review to fully and impartially investigate,” the company said.
“While this review is under way, Gregg Wallace will be stepping away from his role on MasterChef and is committed to fully co-operating throughout the process.
“Banijay UK’s duty of care to staff is always a priority and our expectations regarding behaviour are made clear to both cast and crew on all productions, with multiple ways of raising concerns, including anonymously, clearly promoted on set.
“Whilst these are historical allegations, incidences brought to our attention where these expectations are not met, are thoroughly investigated and addressed appropriately.”
A BBC spokesman said: “We take any issues that are raised with us seriously and we have robust processes in place to deal with them.
“We are always clear that any behaviour which falls below the standards expected by the BBC will not be tolerated.
“Where an individual is contracted directly by an external production company we share any complaints or concerns with that company and we will always support them when addressing them.”
Previous investigation
Last month, Wallace responded to reports that a previous BBC review had found he could continue working at the corporation following reports of an alleged incident in 2018 when he appeared on Impossible Celebrities.
Wallace said those claims had been investigated “promptly” at the time and said he had not said “anything sexual” while appearing on the game show more than half a decade ago.
In an Instagram post following an article in The Sun newspaper, he wrote: “The story that’s hitting the newspapers was investigated promptly when it happened six years ago by the BBC.
“And the outcome of that was that I hadn’t said anything sexual. I’ll need to repeat this again. I didn’t say anything sexual.”
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Alongside MasterChef, Wallace presented Inside The Factory for BBC Two from 2015.
Wallace and Anne-Marie Sterpini in 2014. Pic: PA
Wallace has featured on various BBC shows over the years, including Saturday Kitchen, Eat Well For Less, Supermarket Secrets, Celebrity MasterChef and MasterChef: The Professionals, as well as being a Strictly Come Dancing contestant in 2014.
He was made an MBE for services to food and charity last year.
Recorded episodes of MasterChef: The Professionals featuring Wallace will be transmitted as planned, the PA news agency understands.
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