Millions told to send in meter readings today to save money
The typical household bill for those who have still not signed up to a fixed tariff will drop by £129 to £1,720 per year when the regulator's new price cap – which sets the limit on how much firms can charge customers per unit of energy – comes into force.
This is £660 (28%) lower than at the height of the energy crisis at the start of 2023 when the government implemented the energy price guarantee.
However, prices remain elevated with the upcoming level £152 (10%) higher than the same period last year.
The price cap does not limit total bills because householders still pay for the amount of energy they consume.
While around 35% of domestic customers are now signed up to a fixed deal that they have actively sought out – and which is not governed by the price cap – approximately 22 million households in England, Wales, and Scotland are still on the energy price cap.
It is these households that should read their meter by the end of the month to make sure they benefit fully from lower energy prices from July 1.
Failing to do so leaves the risk of paying the higher pre-July 1 rate for energy used in the form of estimated bills.
Research for the comparison site Uswitch suggests that a fifth of households (20%) without smart meters have not submitted their meter readings in the last three months, and 6% have not done so for a whole year.
Uswitch calculated that homes on a standard price cap tariff with average usage are expected to spend £63 on energy in July compared with £113 in June, due to a combination of cheaper unit rates and lower usage over the summer.
It urged households to sign up to a fixed deal while prices remain competitive, and said there were 10 fixed deals available which were cheaper than the July price cap – the cheapest offering savings of around £145 for the average household.
Uswitch energy spokesman Ben Gallizzi said: 'Customers who don't have a smart meter should submit their readings before or on Tuesday 1 July, so their supplier has an updated – and accurate – view of their account.
'There's a lot of uncertainty about global energy costs at the moment, which has led industry experts to predict a rise in energy bills and in the price cap this autumn.
'But households can get ahead of this possible price hike by fixing at cheaper rates now. Currently, there are a range of fixed deals currently available that are around £145 cheaper than the July price cap for the average household.
'If you can switch to a deal cheaper than the July price cap, now is a good time to make the change. We urge customers to run an energy comparison as soon as possible.'
Ofgem has also reminded households that they do not have to pay the price cap, saying 'there are better deals out there'.
The fall in energy costs will come as a relief for households, who suffered through an 'awful April' of bill rises, including Ofgem's last 6.4% price cap increase.
Under-pressure households have also been hit with the biggest increase to water bills since at least February 1988, alongside steep rises across bills for council tax, mobile and broadband tariffs, as well as road tax.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
25 minutes ago
- Telegraph
Revealed: 128,000 families in social housing earn more than £71k
Almost 130,000 households in taxpayer-subsidised homes are among the top earners in the country, Telegraph analysis shows. Official figures reveal that 3.2pc of those renting from local authorities and housing associations earned at least £71,344 last year. It represents approximately 128,000 of the four million social housing households in England between 2023 and 2024. Some 315,000 were found to earn at least £46,176 a year. The average household income in the UK is £55,000 per year, according to the most recent government data. There were 1.3 million households awaiting a social housing placement as of March 2024, up 3pc in a year – and the highest it has been since 2014. The figures, published in the annual English Housing Survey, an official data bank, suggest the proportion of social housing households on the highest incomes has grown in recent years. Between 2015 and 2016, the research placed 2.7pc of social housing renters in the top group of earners – this figure has now climbed to 3.2pc. Kevin Hollinrake, the shadow housing secretary, said: 'With over a million households on the social housing waiting list, it's impossible to justify high earners remaining in taxpayer-subsidised homes. 'Government subsidies should be focused on those in greatest need. Social housing exists as a safety net, and resources should be targeted at the poorest to ensure the system remains fair and effective.' Between 2023 to 2024, social housing tenants paid 55pc of the weekly median market rate of a property in England, according to official figures. In London, weekly social housing rents are 40pc of those paid by private renters. Weekly median social housing rent in England was £107 last year, while private renters paid £196. In London, prices were £346 a week and £140 a week respectively. A household earning £71,344 a year would therefore spend around 11pc of their take-home pay on an average social housing rent in England. If they were in the private rental sector, they would spend almost double, 20pc, on rent. Today, the vast majority of households in social housing were in the lowest category of earners in the country. Just over 47pc of social housing households earned as little as £76 a week, while 27.6pc earned at least £360 a week. Applicants for taxpayer-subsidised housing must provide details of their income when applying to live in a property, but are not typically disqualified from living there if they earn more later. Critics have long argued the loophole means those who need social housing are kept waiting for longer, currently seven years on average for a family-sized home in England, according to the National Housing Federation, while top earners keep hold of the cheaper housing. Lifetime tenancies, also known as secure housing placements, are offered as the default by almost all local authorities after a botched Tory bid to scrap them. In 2012, a coalition government gave local authorities the discretion to not offer lifetime tenancies. However, take-up among councils was low. The Conservatives went further by trying to scrap them altogether in 2015, but eventually shelved the plans. So-called 'Pay to Stay' rules, that would have seen higher earners pay more to continue living in social housing, were also proposed by former chancellor, George Osborne, in 2016, but were never enforced. Secure tenancies remain the predominant form of council housing today. Lifetime tenancies made up 89.9pc of new council lettings in the year ending March 2024, according to official figures. A government spokesman said: 'It is up to individual councils to make housing decisions based on people's needs – but higher earning tenants make up just 3pc of the overall social housing population. 'Our focus is on taking action to deliver our stretching target of 1.5 million homes, including the biggest boost to affordable and social housing in a generation – backed by £39bn – to tackle the housing crisis we've inherited head on and give more families a safe, secure home.' A spokesman for the Local Government Association, which represents UK councils, said: 'We are facing a housing crisis, and councils need to be empowered to build more affordable, good quality homes quickly and at scale. Individual council have policies on how to allocate social housing. 'These are in line with priority need and relevant legislation, and response to changes in circumstance are for individual authorities to outline in their housing policies.'
Daily Record
28 minutes ago
- Daily Record
Martin Lewis urges people to lock in energy fix to avoid overpaying on new price cap
The consumer champion warns two-thirds of homes in Scotland, England and Wales are on the 'Pants Cap'. Martin Lewis is urging people on the price cap to switch to a fixed tariff as they will probably be overpaying on energy bills this summer, despite the seven per cent drop in gas and electricity prices. Writing in the latest edition of the MoneySavingExpert ( newsletter this week, the consumer champion shared a comprehensive guide to lowering your energy bills by a further 10 per cent. He explained that some two-thirds of homes in Scotland, England and Wales are on their energy supplier's 'bog-standard default tariff, which means its price is dictated by the regulator, Ofgem's Price Cap'. Along with comparable fixed tariff deals, the financial guru answers the most common questions and concerns people have about moving off the price cap, something he has dubbed the 'Pants Cap'. Martin wrote: 'The good news is that the Price Cap has been cut by 7 per cent today, meaning for every £100 you were paying, for the same energy use you'll now roughly pay £93. 'Yet that's still 10 per ecnt higher than this time last year, and the current prediction is it won't get much cheaper. So, frankly, the Price Cap still looks like a Pants Cap - if you're on it, you're likely overpaying.' You can work your way through Martin's full step-by-step guide to lowering your energy bills and locking in the best deal on here. Energy bills have fallen for households as latest forecasts predict a further on eper cent drop in October due to easing Middle East tensions. Analyst Cornwall Insight expects the cap to fall to £1,698 a year from the current £1,720 for a typical dual fuel consumer, but stressed 'significant uncertainty' remained with two months until the final figure is announced. The price cap sets the limit on how much firms can charge customers per unit of energy, but does not limit total bills because householders still pay for the amount of energy they consume. The latest cap is £660 (28%) lower than at the height of the energy crisis at the start of 2023 when the UK Government implemented the energy price guarantee. However, prices remain elevated at £152 or 10 per cent higher than the same period last year. Cornwall Insight said its latest forecast reflected wholesale prices falling as military tensions in the Middle East had eased. But it said the cap still remained hundreds of pounds above pre-pandemic prices, even when adjusting for inflation. Furthermore, there was little indication that prices would reduce substantially over the next few years, it warned. It is predicting a further small fall in January, with prices rising slightly in April, but said market volatility, geopolitical risks and potential changes - and additions - to the non-wholesale components of bills meant forecasts remained changeable. Cornwall Insight principal consultant Craig Lowrey said: 'While any reduction in energy bills is welcome, we must not let small fluctuations in the price cap mask the bigger picture. 'Households are still paying far more for their energy than they were before the pandemic, with the current outlook showing little prospect of a meaningful drop over the next few years. 'Our reliance on international energy markets means that while we have a range of supply sources, this brings with it a vulnerability to global events and price shocks – something that was evident in June. If we want to bring real stability and affordability to the energy system, we need to continue, and speed up, our transition to homegrown, renewable power. 'This transition will not happen overnight, and there will be short-term costs along the way. However, in the long-term, building a more self-sufficient energy system is the only way to help shield consumers from international volatility and put us on a more secure and sustainable path for the future.'
BBC News
28 minutes ago
- BBC News
Rocket House cafe in Cromer is not for sale, says council
A council says it will not sell a seafront cafe, despite earlier discussions over the future of the Norfolk District Council had considered selling the Rocket House in Cromer, which has faced problems with damp, but later dismissed the idea due to ongoing costs year, the authority committed to spending more than £1m on repairs to the property, which is built into a cliff leaseholders of the cafe are now being asked to pay more in rent as part of a new lease agreement. The Rocket House is home to the cafe, the Royal National Lifeboat Institution's (RNLI) Henry Blogg Museum and public restaurant, which opened in 2006, has helped make the Rocket House a Cromer tourist is hoped the renegotiated rental agreement will bring cash into the council's coffers, while securing the future of the Democrat cabinet members at the district council will meet next week to discuss the property's future. The Rocket House was built in 2006 and was funded partly through EU regeneration has been undergoing extensive repairs after facing chronic damp issues and a new floor has been installed in the new rental agreement comes as the museum, which sits on the building's ground floor, remains closed until further renovation work is carried out. Much of the ground floor was damaged by storm surges in 2007 and the costs of maintaining the landmark building have proved controversial, with critics calling it a "monumental mistake" due to the risks of damage from the sea. This article was written by a trusted journalist and then edited for length and style with the help of AI, before being checked again by a BBC Journalist. It's part of a pilot. Follow Norfolk news on BBC Sounds, Facebook, Instagram and X.
