Calls for ‘urgent action’ as energy price cap jumps to £3,549

Energy regulator Ofgem has confirmed average energy bills will rise to £3,549 a year from October, with further rises expected in January if urgent government action is not taken.

This reflects an 80% rise from the current cap of £1,791 which has already devastated low-income households across the country.

Currently, the government is offering everyone £400 off their energy bills, with an additional £650 secured for those receiving benefits.

But many are saying this isn’t enough to help people cope with the drastic rise in bills, with money saving expert Martin Lewis warning that ‘lives will be lost this winter.’

Polly Billington, Chief Executive of UK100, a network of council leaders and mayors committed to net zero, has echoed calls for urgent action to tackle the devastating price hike.

She said: ‘With households already beset by a cost-of-living crisis, it’s impossible to see how many families will cope with an average energy bill rise of over £1,500 a year. We are looking down the barrel of a bleak winter across Britain. It is clear that urgent action is needed to help communities now.

‘But while cash handouts are a vital short-term measure to support the most vulnerable across the country, we cannot pretend that those funds are going anywhere but straight back to the energy firms already making record profits.

‘The handouts already budgeted for will cost taxpayers £21bn. How much will that bill increase when the cap rises again in January?’

Billington has taken aim at the government’s lack of a plan to drive energy efficiency, a measure she says is key to permanently cutting energy bills and reducing carbon emissions.

Now she’s calling for ministers to prioritise upgrading the UK’s social housing stock, which could not only protect vulnerable households from exorbitant bills, but also create jobs.

‘Britain has some of the draughtiest homes in Europe,’ she said. ‘If our radiators kicked out five-pound notes instead of warm air, we would see wads of them escaping from homes up and down the country every winter. Our homes are leaking money and energy.

‘But energy efficiency isn’t sexy. It doesn’t ignite culture wars. And it doesn’t sell newspapers.

‘This can be the only explanation for why the Government has seemingly passed up almost every possible opportunity to improve the energy efficiency of Britain’s homes, including recently scrapping a £1bn scheme to do just that. Whoever takes the keys to Number 10 needs to face up to the challenge and focus on real solutions, not just throwing good money after bad.

‘End the wait. Insulate.’

Photo by Brooks Leibee