The UK government has announced that the new energy cap will be introduced on 1 July, meaning typical annual household bills will rise by 13%. This change affects millions of households across the country, with the average annual bill expected to increase by £139.
According to Ofgem, the energy regulator, the new cap will be set at £2,074 per year, up from the current cap of £1,835. This increase will have a significant impact on UK households, particularly those already struggling to make ends meet.
Ofgem has warned that the rise in energy bills could lead to increased poverty and hardship, particularly among vulnerable households. Citizens Advice has also expressed concerns, stating that the increase will put significant pressure on household budgets.
However, there are steps you can take to reduce your energy costs. MoneySavingExpert recommends turning off lights, using energy-efficient light bulbs, and draught-proofing your home to save up to £300 per year. Additionally, the Warm Home Discount scheme, administered by the UK government, provides a one-off payment of £140 to eligible households to help with energy costs.
For those struggling to pay their energy bills, the government's Universal Credit scheme may be able to provide additional support. It's essential to contact your energy supplier and discuss your options, or seek advice from a reputable organisation such as Citizens Advice.