Customers’ energy bills are expected to exceed £2,000 in January, putting additional strain on struggling homes. The average energy bill will climb this winter as more people turn on their heating.
The energy price cap, which determines the highest amount a typical bill can be, will be raised from £1,834 to £1,928 per year, a £94 or 5% increase.
It comes after successive cuts in rates earlier this year after the price cap was reduced in July and October – the lowest bills since October 2021 and the first decline in two years.
How will energy bills change, and who will be affected?
The maximum price that suppliers can charge for each unit of gas and electricity is fixed by Ofgem, but not the entire bill, so if you use more, you will pay more.
From January 1, 2024, the price of petrol will be 7p per kilowatt hour (kWh), while the price of electricity would be 29p per kWh under the new price cap.
For the time being, the adjustments will only affect direct debit clients.
According to MoneySavingExpert, if you prepay for your energy, it is not yet known how your payments would change.
This is because, after agreeing to abolish the prepaid premium earlier this year, the UK government would add a tiny subsidy to prepay rates under the price ceiling.
Is there any support I can get?
Yes, there is. Here are the primary ways you can obtain help with your winter energy expenses. Remember that you may be eligible for more than one of them, so double-check:
Winter fuel payment
The Department for Work and Pensions (DWP) is providing a winter fuel payment to assist older persons in meeting the expense of heating during the winter months. It is open to both benefit claimants and non-benefit recipients. Since September 18, people have begun receiving letters informing them if they are eligible, and they have been able to initiate a claim over the phone or by mail.
The scheme started on November 1 and the money is sent out between then and January. You will get it if you if you were born before September 25, 1957, and receive certain benefits or state pension. How much you get depends on when you were born and your circumstances with the money this year including a pensioner top-up of between £150 and £300. This means anyone eligible will receive between £250 and £600.
Cold weather payments:
Cold weather payments are also likely during the winter months. The cold weather payments will be extended by the Department for Work and Pensions (DWP) from November 1, 2023 to March 31, 2024.
If the average temperature in your area is recorded as, or predicted to be, 0 degrees Celsius or lower for seven consecutive days, you will get paid. You’ll receive £25 for every seven days of extremely cold weather between November 1, 2023, and March 31, 2024.
You may get cold weather payments if you’re getting:
- Pension credit
- Income support
- Income-based jobseeker’s allowance (JSA)
- Income-related employment and support allowance (ESA)
- Universal credit
- Support for mortgage interest
You’ll usually get the payments if you get income support or income-based jobseeker’s allowance (JSA) and have any of the following:
- a disability or pensioner premium
- a child who is disabled
- child tax credit that includes a disability or severe disability element
- a child under five living with you
Support from your energy provider
You may also be able to seek assistance from your energy supplier. Many suppliers provide their own forms of assistance, such as bill payment assistance, hardship programmes, and free home heating equipment. It’s best to check with your company to see what’s available.