From July, UK households will see their energy bills climb by 13%, pushing costs to their highest point in two years. This significant increase, reported by the Financial Times, means another squeeze on household budgets already grappling with rising expenses.
As your consumer champion, I'm here to break down what this means for your wallet and what practical steps you can take right now to prepare for the change.
What Changed and By How Much?
The core change is a 13% increase in the amount you pay for your household energy. This isn't a small adjustment; for every £100 you currently spend on your energy bill, you can expect to pay an extra £13 from July. This rise applies to the unit rates you pay for gas and electricity, as well as standing charges, depending on your tariff.
When is This Effective?
This 13% increase will take effect from July. This means that your energy bills for consumption from the beginning of July onwards will reflect these higher rates. It's crucial to be aware of this date to manage your budget effectively.
What this means for you
For every £100 you currently allocate to your energy costs each month, you will need to find an additional £13 to cover the increased charges from July. This direct financial impact will necessitate a review of household budgets to accommodate the higher expenditure.
What You Can Do Right Now
While the news of rising bills is unwelcome, there are practical steps you can consider taking to mitigate the impact:
- Check Your Current Tariff: If you're on a standard variable tariff, it may be worth checking if your energy supplier offers a fixed-rate deal. While fixed rates have been less competitive recently, it's always worth comparing to see if you can lock in a rate before further potential increases.
- Submit Meter Readings: Before July, consider submitting an up-to-date meter reading to your energy supplier. This ensures you're only charged at the old, lower rate for the energy you used up to that point, preventing any estimation errors that could cost you more.
- Boost Energy Efficiency: Simple changes around the home can make a difference. Consider insulating your loft or walls, using draught excluders, switching to LED lighting, and ensuring appliances are turned off at the plug rather than left on standby.
- Understand Your Usage: Many energy suppliers offer smart meters or online tools that allow you to track your energy consumption. Understanding when and how you use the most energy can help you identify areas for reduction.
- Review Your Budget: With an extra 13% on your energy costs, now is a good time to review your overall household budget. Look for other areas where you might be able to make small savings to offset the increased energy expenditure.
Where to Get Help
If you are concerned about your ability to pay your energy bills, there are organisations that can offer support and advice:
- Citizens Advice: They offer free, independent advice on a range of issues, including energy bills and debt.
- National Energy Action (NEA): This charity works to end fuel poverty and can provide guidance on energy efficiency and financial support.
- Your Energy Supplier: Many suppliers have hardship funds or payment plans available for customers struggling to pay. It's always worth contacting them directly to discuss your options.
Sources
- Financial Times — UK household energy bills to rise by 13% from July to two-year high