OFGEM has today announced a hike in the energy price cap, massively increasing the amount you could be charged for your bills.
Brit families have today been told that the cap on bills has been lifted to £3,549 a year.
Ministers are now under pressure to offer radical support to struggling families, similar to schemes used during the pandemic.
Proposals are being lined up to allow either Liz Truss or Rishi Sunak to make quick decisions to help deal with the crisis when they become PM.
The rise will hit 24million households, with four million of those on prepayment meters.
Over nine million more households have moved on to the standard variable tariff since October last year after more than thirty energy suppliers went bust.
Those who pay their energy bills by direct debit will see bills increase from £1,971 to £3,549.
Those on credit meters who pay by other means will see their bills hiked from £2,100 to £3,764.
Read our live blog below for the latest updates….
- Joseph Gamp
When does the second half of the Cost of Living payment come?
An estimated 8.2million people will get the cost of living cash payment.
And the second half of the £650 cost of living payment worth £324 will go out in autumn.
An exact date is yet to be confirmed.
Further payments will come this winter including for those with disabilities, pensioners, and every single energy bill payer.
- Joseph Gamp
Labour says energy price cap rise 'incredibly worrying'
Labour shadow chancellor Rachel Reeves, responding to the rise in the energy price cap, said: "This is incredibly worrying and will strike fear in the heart of many families.
"We cannot wait any longer to act. This is a national emergency.
"The Tories must freeze energy bills now so households don't pay a penny more in winter," she tweeted.
- Joseph Gamp
Government acknowledges increase will cause 'stress and anxiety'
Chancellor Nadhim Zahawi said the increase in the energy price cap would cause "stress and anxiety" for people.
However, he stressed that the Government was working to develop more options to support households.
"I know the energy price cap announcement this morning will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households, and £300 for all pensioners," he said.
"While Putin is driving up energy prices in revenge for our support of Ukraine's brave struggle for freedom, I am working flat out to develop options for further support.
"This will mean the incoming prime minister can hit the ground running and deliver support to those who need it most, as soon as possible."
- Joseph Gamp
When will the price cap be adjusted again?
The latest cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1.
It will remain in place until December 31, when it will be adjusted again.
- Joseph Gamp
Exact date 1.1million families on tax credits will get first £326 cost of living payment
By Lynsey Barber
MILLIONS of people will get extra cash to help them through the cost of living crisis within days.
Over one million families getting tax credits will get the first half of a £650 direct payment.
People on tax credits have had to wait for the first part of the cost of living payment, worth £326.
The government has now confirmed that it will hit bank accounts from September 2.
Around 7million households on benefits like Universal Credit and pension credit have already had the cash.
The direct payments started being made from July 14 and most by the end of that month.
- Joseph Gamp
Nadhim Zahawi 'working on a plan ready for next Government'
Finance minister Nadhim Zahawi said he was working on a plan to be ready for the next government, which will be appointed when either Liz Truss or Rishi Sunak becomes prime minister on Sept. 5.
Ofgem said it was not giving projections for January when a new cap will take effect because the market remained too volatile.
However, the market for gas in winter means that prices could get "significantly worse" through 2023.
- Joseph Gamp
Paying by direct debit is cheaper
Today the price cap rose to £3,459 for 24 million Brit households.
Paying by direct debit is the cheapest way to pay your bills.
Between October 9 and December, the price cap for people paying by direct debit.
If you use Standard Credit – or pay manually after receiving a bill – the price cap increases by £215 to £3764.
But those hit hardest will be on a pre-payment meter.
People already paying with this method have seen their cap rise to £2017, while those using direct debit are paying £1,971.
- Joseph Gamp
Statement from Ofgem on today's price rise
Jonathan Brearley, CEO of Ofgem, said: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make. I talk to customers regularly and I know that today’s news will be very worrying for many.
“The price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately turned off the gas supplies to Europe causing harm to our households, businesses and wider economy. Ofgem has no choice but to reflect these cost increases in the price cap.
“The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year. We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action. The response will need to match the scale of the crisis we have before us. With the right support in place and with regulator, government, industry and consumers working together, we can find a way through this.”
- Joseph Gamp
Around 24 million households to be hit by today's hike
The rise will hit 24million households, with four million of those on prepayment meters.
Over nine million more households have moved on to the standard variable tariff since October last year after more than thirty energy suppliers went bust.
- Joseph Gamp
Energy bills to rise by 80% for Brits
The cost of energy for British consumers will rise by 80% from October, regulator Ofgem said on Friday.
Today's figure takes theaverage annual household bills to £3,549.
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