Gas and electricity prices are set to rise by 10% in England, Scotland, and Wales from October, impacting millions of households. This article explores the new energy price cap, changes to winter fuel payments, and additional support available for managing energy costs.
Energy Price Cap Overview
From October, gas and electricity prices in England, Scotland, and Wales will increase by 10%. The new energy price cap sets the typical annual dual-fuel bill at £1,717 for direct debit payments. This cap, set quarterly by Ofgem, limits the maximum price per unit of energy for standard tariffs. Between October and December, gas prices are capped at 6.24p per kWh and electricity at 24.50p per kWh. Households paying quarterly by cash or cheque will see higher bills, averaging £1,829 annually. Prepayment meter users will pay slightly less, with typical bills rising to £1,669.
Changes to Winter Fuel Payments
Previously, all pensioners received winter fuel payments ranging from £100 to £300. Starting in winter 2024, only pensioners on pension credit or other means-tested benefits will qualify. This change affects around 10 million pensioners, with the policy applicable in England and Wales. Approximately 850,000 eligible households do not claim pension credit. Eligibility criteria include being above state pension age with a weekly income below £218.15, or £332.95 for couples, considering savings and other factors.
Government’s New Housing Targets
In our previous article, we outlined how the Labour government has introduced significant housebuilding policy changes. Chancellor Rachel Reeves aims to build 1.5 million homes over the next five years, reinstating local housing targets. To recap, the government is also consulting on planning law changes to utilise previously developed “greybelt” land for homebuilding. These ambitious plans have generated optimism within the industry, but only time will tell if these goals will be fully realised.
Additional Considerations
The £500m Household Support Fund, extended until March 2025, continues to assist vulnerable customers. The Warm Home Discount Scheme and the Fuel Direct Scheme offer further support to eligible pensioners and low-income households. Suppliers must provide affordable payment plans or repayment holidays for struggling customers, and many offer hardship grants. Ofgem is also considering changes to the energy cap system, including variable pricing based on demand.
For more information on managing energy costs and available support, contact your energy supplier or visit relevant government websites.
Futurelink Group understands the rising cost of living and aims to support our contractors by providing competitive solutions to ensure they take home higher pay. For more information, call 01923 277900 or email sales@futurelinkgroup.co.uk.
