Stories

Wed, 01 Jul 2026

Wed, 01 Jul 2026 What will the energy cap changes mean for my bills?

Typical annual household bills rose by 13% under Ofgem's new energy cap which took effect on 1 July.
1. Energy cap: The article explains that approximately 22 million households in England, Scotland, and Wales are protected by the energy price cap, which limits the amount suppliers can charge per unit of electricity or gas. 2. Price rises: Due to the conflict in Ukraine, prices have increased sharply, leading to higher bills for many households. In addition, the article mentions that heating oil prices have risen significantly, affecting around 1.5 million UK households who use this type of fuel. 3. Government support packages: The government has announced a £53m support package for "vulnerable" households who use heating oil, with targeted assistance to help low-income households in rural communities. 4. Supplier obligations: Suppliers are required to offer affordable payment plans or repayment holidays if customers are struggling to pay their bills. Most suppliers also offer hardship grants. 5. Energy debt and arrears: The article reports that the level of energy debt and arrears in England, Wales, and Scotland has reached £4.79bn, with over one million households having no arrangement to repay their debt. 6. Debt cancellation scheme: Ofgem hopes to introduce a scheme in 2026 that could see up to £500m knocked off debt owed to suppliers for nearly 200,000 people on benefits who have made some effort to pay what is owed. 7. Cost of covering the debt cancellation scheme: The cost of this scheme will be covered by adding an extra £5 to everyone's gas and electricity bill. Additionally, the article mentions various government schemes that help people on low incomes with their energy bills, including:
* Household Support Fund
* Warm Home Discount scheme
* Fuel Direct Scheme
* Winter Fuel Payment (worth £200 or £300 for pensioners) The article also touches upon the topic of rising costs caused by the Iran war and its impact on quality of life or business.