Energy price cap set to rise in April, according to forecast
The group said it expects regulator Ofgem to reveal that the typical household energy bill will rise by 5%, or £85, to £1,823.
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: ' Households have been hit hard over the past few months, and with bills set to rise for a third consecutive time the pressure is not letting up.'
Higher energy costs only reinforce the need to accelerate our expansion of clean, reliable energy across the UK
Dr Craig Lowrey, Cornwall Insight
Mr Lowrey said the rise was because of an increase in wholesale gas prices across Europe.
He said this underscored the need for Labour's push towards building more UK-based renewable energy, such as wind and solar farms.
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets, with the regulator due to confirm the level for April to June on February 25.
The energy price cap was introduced by the Government in January 2019 and sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.
It does not limit total bills, because householders still pay for the amount of energy they consume.
The cap is significantly lower than at the peak of the energy crisis, which was fuelled by Russia's invasion of Ukraine in February 2022.
But prices are still 'more volatile than it has been in quite some time, and households are bearing the brunt of cold weather and low gas storage levels across Europe,' Mr Lowrey said.
It comes as the Government pushes ahead with its policy of building out renewable energy, with a goal of reaching 95% clean power across the electricity grid by 2030.
Mr Lowrey said: 'It might be tempting to look at rising bills and conclude that the push towards renewables is not working, and we should scale back on the transition.
'But the reality is higher energy costs only reinforce the need to accelerate our expansion of clean, reliable energy across the UK.'
He said without more UK-based renewable energy, Britain would be 'left forever at the whim of the volatile international wholesale market, which as recent years have shown, can be a pretty expensive place to be'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
13 minutes ago
- The Independent
Kneecap rapper faces month-long wait over whether terror charge is thrown out
A member of rap trio Kneecap faces a month-long wait to find out whether his terrorism charge will be thrown out. Liam Og O hAnnaidh, who performs under the stage name Mo Chara, was once again greeted by hundreds of fans as he arrived at Westminster Magistrates' Court on Wednesday for a three-hour hearing. Prosecutors allege the 27-year-old displayed a flag in support of proscribed terror organisation Hezbollah at a gig at the O2 Forum in Kentish Town, north London, in November last year. During Wednesday's hearing, his defence team argued the case should be thrown out, citing a technical error in the way the charge against him was brought. Brenda Campbell KC told the court the Attorney General had not given permission for the case to be brought against the defendant when police informed him he was to face a terror charge on May 21. She said consent was given the following day, but that meant the charge falls outside of the six-month time frame in which criminal charges against a defendant can be brought. Prosecutor Michael Bisgrove said permission was not required until the defendant's first court appearance and that permission did not need to be sought in order to bring a criminal charge. Chief Magistrate Paul Goldspring adjourned the case until September 26, when he will rule on whether he has the jurisdiction to try the case. Hundreds of Kneecap supporters waving flags and holding banners greeted O hAnnaidh as he arrived at court alongside fellow bandmates Naoise O Caireallain and JJ O Dochartaigh. Demonstrations in support of the rapper were organised outside the court building in London, as well as in Dublin. The Metropolitan Police imposed conditions limiting where the demonstration outside the court could take place, saying they were needed to 'prevent serious disruption'. A man was detained by police outside the court building because of a placard he was holding following the hearing. Surrounded by officers, he told reporters his hand-made sign made no reference to any proscribed organisations. O hAnnaidh was swamped by photographers as he arrived, with security officers taking more than a minute to usher him into the court building. Supporters greeted the Kneecap rapper with cheers as he made his way from a silver people carrier to the building. Fans held signs which read 'Free Mo Chara' while others waved Palestine and Irish flags before the rapper's arrival at court. Chants of 'Free, free, Mo Chara' could also be heard over a megaphone, which was repeated by the crowd. Mr O Caireallain and Mr O Dochartaigh sat at the back of the courtroom with three others as O hAnnaidh confirmed his name, date of birth and address to the court at the start of the hearing. In response to the Met imposing conditions on the protest, Kneecap described the move as a 'calculated political decision' that was 'designed to try and portray support for Kneecap as somehow troublesome'. The court previously heard the 27-year-old defendant is 'well within his rights' to voice his opinions on the Israel-Palestine conflict, but the alleged incident at the O2 Forum was a 'wholly different thing'. O hAnnaidh, of Belfast, is yet to enter a plea to the charge and is on unconditional bail.
The Independent
13 minutes ago
- The Independent
Reeves' ‘mansion tax' would stall home sales and fuel exodus of super-rich, experts warn
Property experts have warned that Rachel Reeves ' plans to levy a so-called 'mansion tax' on high-value properties would stall housing sales and add to the exodus of the super-rich from the UK. Mortgage brokers and financial planners have rounded on the chancellor after reports she is considering hitting the owners of expensive properties when they sell to plug a £40bn hole in the public purse. The mooted plans would see higher-rate taxpayers pay 24 per cent of any gain in the value of their home, while basic rate taxpayers would be hit with an 18 per cent levy. Currently, capital gains tax is not paid on the sale of primary residences. Proposals being considered for the autumn budget, the private residence relief would end for properties above a certain threshold, sources told The Times. The threshold is said to still be under consideration, but a £1.5 million starting point would hit around 120,000 homeowners who are higher-rate taxpayers with capital gains tax bills of £199,973. Financial adviser Scott Gallacher, director at Rowley Turton, said a level of £1.5m would prevent most older homeowners, particularly those who bought properties in the 80s and 90s, from selling houses. He added that the plans would 'kill off the upper end of the property market' and be difficult to implement. Mr Gallacher said: 'It would be insane if it creates a cliff edge in that properties over £1.5m are subject to Capital Gains Tax on the entire gain, as properties sold at £1.49m would incur no CGT whereas £1.5m might be a six-figure bill. If it's only on gains above £1.5m, then the CGT raised would be minimal, as potentially you'd be exempting six or even seven-figure gains.' He added: 'Homeowners, especially older ones, who perhaps bought their houses in the 1970s or 1980s, would be daft to sell and incur a huge CGT liability. Instead they would be incentivised to hold on to the home until they die and pay no CGT.' Meanwhile Simon Gerrard, chairman of Martyn Gerrard Estate Agents, warned the plans would leave families who bought homes in London more than a decade ago facing 'eye-watering' tax bills. 'Meanwhile, those who are actually wealthy know how to bypass these moves and won't pay it,' he said. He told The Independent: 'After the deadline passes people will simply not sell their homes. The property market above the threshold will die until Labour are voted out and the policy is repealed under a more sensible government.' Laith Khalaf, head of investment analysis at AJ Bell, said the tax-free nature of primary residences is 'deeply embedded in the psyche of homeowners'. He warned: 'A mansion tax set at high level would naturally cause people to worry it was just the thin end of the wedge, and the next time the government needs a bit of money they could just lower the threshold. 'It would also be an impediment to mobility in the housing market, as those with properties which might fall foul of the tax would be inclined to sit on them for longer, leaving a log jam in the housing ladder below them.' And critics warned the tax change would add to the reported exodus of super-rich individuals fleeing Britain. 'I can see a lot of families in London being caught with this higher tax bill, and it may push more wealthy tax contributors to exodus the UK, which is already a problem following the Chancellor 's last budget,' said Stephen Perkins, managing director of Yellow Brick Mortgages. The Treasury was asked to comment.
The Independent
13 minutes ago
- The Independent
Newcastle United hit back at Alexander Isak's social media statement
Newcastle United have rejected striker Alexander Isak 's claim that he was promised a summer exit, stating he remains under contract. Isak accused the club of 'broken promises' and declared 'trust is lost', asserting that a transfer is now in everyone's best interest. The club issued a strong statement denying any such commitment and indicated that the conditions for a sale, including a rejected £110m bid from Liverpool, would not be met. Isak has not featured for Newcastle in pre-season or their opening league match, reportedly due to a thigh injury, and is training separately. The dispute comes as Newcastle began the season without a recognised striker, having failed to secure other transfer targets.
