The new energy price cap came into effect today as families across the country have been urged to take photographs of their meter readings.
The new cap means that a typical UK household will not spend more than £2500 a year. However, households that use a lot of gas and electricity will see higher costs.
How much will energy bills cost kW h now?
The new price cap has seen the cost per unit of energy rise.
This means that the amount each household pays for each kilowatt hour of electricity (kW h) will rise from 28p to 34p.
Gas prices will go from 7p to 10p per kW h under the new price cap.
Just a year earlier gas had cost 4p per kW h for customers on the price cap and the charge for electricity was 21p.
🔔Energy prices will change tomorrow
— Ofgem (@ofgem) September 30, 2022
Keep your supplier up to date by supplying a meter reading, but if you can't get through, you can submit your reading a reasonable time after.
It might help to take a photo of the reading pic.twitter.com/AeuZoiiWi7
Will pensioners get help with energy bills?
If you were born on or before 25 September 1956 you could get between £250 and £600 to help you pay your heating bills. This is a government support scheme known as the ‘Winter Fuel Payment’.
The amount you will receive includes a ‘Pensioner Cost of Living Payment’.
This is a payment between £150 and £300. You’ll only get this extra amount between winter 2022 to 2023.
This is in addition to any Cost of Living Payment you get with your benefit or tax credits.
You will get your Winter Fuel Payment automatically (you do not need to claim) if you’re eligible and either:
- get the State Pension
- get another social security benefit (not including Adult Disability Payment from the Scottish Government, Housing Benefit, Council Tax Reduction, Child Benefit or Universal Credit)
If you do not get either of these, or if you live abroad, you may need to make a claim.
If you’ve got a Winter Fuel Payment before, you do not need to claim again unless you’ve deferred your State Pension or moved abroad.
The deadline for you to make a claim for winter 2022 to 2023 is March 31 2023.
You can find out more about this payment and see if you qualify on the government website here.
What government support is available for energy bills?
If you’re struggling with the rising cost of energy bills, government support is available.
Households will start receiving money off their energy bills from October, with the discount made in six instalments.
A discount of £66 will be applied to energy bills in October and November, rising to £67 each month from December through to March 2023.
Further Government support includes a £650 one-off cost-of-living payment for around eight million households on means-tested benefits.
You can view the full list of government support available in our explainer here.
Energy prices have changed
— Ofgem (@ofgem) October 1, 2022
The average direct debit unit rates for energy;
ELECTRICITY
Unit rate 34.00p per kWh
Standing charge 46.36p per day
GAS
Unit rate 10.30p per kWh
Standing charge 28.49p per day
These are caps on unit rates (not a cap on total bills) & vary by region pic.twitter.com/CtH2sQ0WbX
Your Money Matters
Your Money Matters is a campaign launched by us and our sister titles across Newsquest to help you overcome the surge in the cost of living. This year has seen a whole host of household price increases — from the energy price cap rise to surging inflation and food prices — costing your family hundreds or even thousands of pounds extra per year. We’re making it our mission to look out for your cash, offering money-saving deals, competitions, giveaways and insightful stories from your community on the impact this cost-of-living crisis is having on our readers. The worldwide energy crisis exacerbated by the Ukraine invasion, the financial impact of the Covid pandemic, record inflation figures and a surge in the cost of goods, fuel and travel means we will all feel the pinch. Through our newspaper, we want to do what we can to help make your cash go further because we know your money matters.
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