princess motor yacht parts

Money blog: Ofgem increases price cap from October meaning households face higher energy bills - follow latest

Welcome to the Money blog, a hub for personal finance and consumer news and tips. Today's posts include reaction to Ofgem announcing an energy price cap increase, as well as a warning over stamp duty. Listen to Ed Conway's analysis of UK borrowing and potential tax rises as you scroll.

Friday 23 August 2024 09:51, UK

• Price cap increase 'worrying', energy secretary says
• Warning £2,500 will be added to stamp duty 'overnight' in March
• Nationwide trumps rivals to offer new lowest mortgage rate

Essential reads

• Savings account that could put your child on strong financial footing at 18
• 'I cook with air fryer in living room after kitchen win went wrong'
• Ed Conway : Are tax rises inevitable - or is chancellor considering another way?
• Listen to Conway on the Daily above and  tap here to follow wherever you enjoy podcasts

Tips and advice

• How to get money back when purchase over £100 goes wrong
• What's the best way to buy travel insurance if I have a medical condition?
• Cheap Eats : Top Yorkshire chef shares Yorkshire pudding secrets

Another quarter, another energy price fluctuation to contend with - another change to make to your household budget.

But there are fixed deals available cheaper than the new price cap, according to Uswitch.

The average household can save £125 against October's price cap with the cheapest 12-month fixed tariff, said Richard Neudegg, director of regulation at Uswitch.

At £1,592 typically per anum, it would also stave off another small increase expected in January, he said. 

It is worth pointing out that it is in Uswitch's favour for people to move, and a fixed tariff could always end up costing you more if the price cap were to drop below that fixed rate in April and June next year.

"Customers staring down the barrel of winter might question whether the current price cap system is really the best way to put real pricing pressure on suppliers," said Mr Neudegg.

"It's important for households looking for certainty to run a comparison to see what's available to them and see personalised prices based on how much energy they are likely to use."

Here are the top 10 fixed energy-only tariffs that could help you beat the price rise, according to Uswitch:

Pensioners are being urged to check if they are eligible for the winter fuel allowance after universal payments were scrapped by new Chancellor Rachel Reeves last month.

Previously, the money was available to everyone above state pension age, but now it will be limited to people over state pension age who are receiving pension credit or other means-tested support.

It means the number of people entitled to the money will drop from 11.4 million to just 1.5 million.

The payment is £200 for households where the recipients are all under 80, and £300 where they are over 80.

While around 1.4 million pensioners are already receiving pension credit, there are up to an estimated 880,000 households eligible for the support who are yet to claim, the Department for Work and Pensions says.

The government's awareness drive will help identify households not claiming the benefit, and encourage pensioners to apply by 21 December - the last date for making a backdated claim for pension credit in order to receive the Winter Fuel Payment.

It will focus on "myths" that may stop people applying, such as how having savings, a pension or owning a home are not necessarily barriers to receiving pension credit.

More information on applying for pension credit can be found on the  government's How to Claim page .

Stockbroker AJ Bell says a price rise at the start of colder months is the "exact scenario" British households hoped was behind them - particularly pensioners.

Combined with the effects of two years of high inflation, residents are set to spend another winter watching "thermostats like a hawk", said head of financial analysis Danni Hewson.

Many pensioners, in particular, have already tried all the tricks available to keep bills down and will be left merely hoping temperatures stay mild, she added.

"For many people having to find an extra £149 a year will be akin to pouring fresh salt on healing wounds," Ms Hewson said.

"For around 10 million older people who are also faced with having to make do without their winter fuel payments, it adds insult to injury. 

"Some pensioners will be able to manage, but others will find the winter months particularly tough."

Energy costs will be £117 below those last Autumn, but will still be £675 higher than October 2020.

There's more bad news for households after October's energy price rise, according to analysts.

Cornwall Insight forecast the cap will be increased by another £45 in January.

This equates to a 3% increase on the average £1,717 per annum charged come Autumn.

"Unfortunately, a volatile wholesale market, and a country heavily reliant on imported energy has created a perfect storm for fluctuating household bills," said Dr Craig Lowrey, Principal Consultant at Cornwall Insight.

This will only intensify calls for government protection, including social tariffs and targeted support, he said.

"The increase is also likely to reignite the debate over the effectiveness of the cap," he added.

"While brought in with good intentions, it was only meant as a temporary measure, and some may argue the cap has served its purpose. 

"One thing is clear: the current system is not meeting the needs of households, and without change, this risks being the case on an enduring basis."

More now on the increase of the price cap.

The chief executive of Ofgem, Jonathan Brearley, has admitted the increase is going "to be extremely difficult for many households".

"Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support," he said.

He also urged consumers to "shop around" and consider opting for a fixed-rate tariff that could save people money.

The figures provided by Ofgem indicate what a household using gas and electricity, and paying by direct debit, can expect to pay if their energy use is typical.

Gillian Cooper, director of energy at Citizens Advice, said the announcement of the increase today "will no doubt see even more people fall behind on their energy bills".

"We're particularly concerned about households with children and young people and those on lower incomes, who are most likely to struggle with their heating costs," she said.

Energy Secretary Ed Miliband has described Ofgem's price cap increase as "worrying" for many people.

The energy price cap will rise to an average annual £1,717 from October, the industry regulator has said - a 9.5% rise which Ofgem said was largely due to higher wholesale gas prices.

"This will be deeply worrying news for many families," Mr Miliband said.

He said: "The rise in the price cap is a direct result of the failed energy policy we inherited, which has left our country at the mercy of international gas markets controlled by dictators.

"The only solution to get bills down and greater energy independence is the government's mission for clean, home-grown power. 

"That's why we have hit the ground running, lifting the onshore wind ban, consenting unprecedented amounts of solar power and setting the largest-ever budget for our renewables auction."

Mr Miliband said he would "do everything in our power to protect billpayers, including by reforming the regulator to make it a strong consumer champion".

The energy price cap will rise to an average annual £1,717 from October, the industry regulator has said.

Ofgem said that the 10% rise was largely due to higher wholesale gas prices.

The price cap is currently set at £1,568 per year for a typical household who use electricity and gas and pay by direct debit.

This means an extra £12.41 a month will be added to the average bill.

The price cap 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 means it does not limit a household's total bills, because people still pay for the total amount of energy that they use.

It's important to purchase travel insurance when going abroad to make sure you're covered if the worst happens.

But it can be even more critical to do this if you have a pre-existing medical condition - even if it can end up costing you more.

Some providers will only cover you for medical emergencies that are unrelated to pre-existing conditions. 

This means if you've been to the hospital or GP, or you've taken any medication for a medical condition in the last two years, you'll need specialist insurance.

According to research from travel insurer AllClear, a third of travellers with pre-existing medical conditions admitted they won't declare all of them when buying insurance.

AllClear says this is part of a larger trend in which travellers are placing less emphasis on safety abroad, and more on cutting costs.

Here are some tips to ensure you get cover that won't break the bank in the process:

Don't assume you'll get automatic cover for your pre-existing conditions

If it isn't stated in your policy documents that your medical conditions are included, they're probably not.

Your best bet is to ask the insurer directly to have your conditions added. If it's unclear, it's always best to contact them to make sure you're covered.

Check the small print

Don't just look at the cost of your policy. It's important to also check the small print to ensure you're covered in the right away.

Look at the "policy exclusions" section of the policy wording, which place limits on other sections - for example, in some cases ruling out claims related to pandemics.

Make sure you shop around for the best deal

It should go without saying that going with the very first insurer you find without shopping around is bad practise.

There will almost always be a better deal available for you elsewhere, and there are plenty of tools to help make this an easy process.

Hop on to a price comparison website to check the prices of all the mainstream insurers, then try to track down some of the more specialist insurers.

These specialise in covering customers with medical conditions - and so may be able to cover you where a bigger provider won't, and at a more reasonable cost.

The British Insurance Brokers' Association has a list of insurers that cover serious medical conditions here . 

Be truthful when applying

If your exact medical condition isn't mentioned in your policy, it might not be valid if you end up with medical bills or cancellation costs.

You must be upfront about your conditions, and be truthful when answering questions.

Every Friday we take an overview of the mortgage market, hearing from industry voices and getting a round-up of the best rates courtesy of the independent experts at  Moneyfactscompare.co.uk .

Slightly under the radar this week was a call for the chancellor to stop a rule change that will add thousands to stamp duty charges next March.

First time buyers currently pay stamp duty if their home costs more than £425,000 - the threshold having been temporarily lifted by the previous government to help people get on the housing ladder.

The uplift is set to end in March and Labour has previously said it would not intervene - meaning the threshold will reduce to £300,000 in spring.

Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: "The chancellor should see the October budget as an opportunity to level the scales and announce changes which will stop the tax on an average priced property jumping up by £2,500 overnight. 

"Short-term pain for the chancellor could result in longer term gain for the broader economy."

We've written extensively in the Money blog about the unequal impact of stamp duty on buyers across the country - with an inflexible threshold meaning most buyers don't pay it in areas where house prices are low, for example the North East, whereas in London the majority of buyers are caught.

On to the wider mortgage market, and Moneyfacts finance expert Rachel Springall says: "It has been another exciting week for fixed-rate mortgage reductions, with cuts from prominent brands such as TSB of up to 0.25%, Nationwide by up to 0.26%, Yorkshire Building Society by up to 0.20%, NatWest by up to 0.16% and HSBC of up to 0.24%."

As we outlined yesterday, the lowest UK-wide deal on the market is now a five-year fixed from Nationwide - at 3.78%.

Brokers quoted by the Money blog yesterday said they hadn't seen rates like that for at least two years.

Here's how average rates looked as of Thursday morning - though it's worth saying that many buyers will be able to find deals lower than these averages...

Away from the overall market and honing in on first-time buyers, Moneyfacts has looked at the best rates currently on offer...

The comparison site also looks at what it calls "best buys" - which considers not just the rate, but other costs and incentives. These are their top picks this week...

Nutella ice cream is making its UK debut.

The Ferrero Group is first selling the flavour in Morrisons, with a wider rollout planned for later this year.

You can expect £1.8m-worth of marketing on TV, social media and other avenues to support the launch.

Abolishing the two-child benefit cap is unaffordable due to an  unexpected increase in government borrowing, a Treasury minister has said.

Darren Jones conceded it was not a decision the government wanted to make "in our hearts".

Borrowing in July stood at £3.1bn - £2bn more than most economists expected.

Asked about the prospects of abolishing the two-child benefit cap in the autumn budget, Mr Jones told the BBC: "You have to just look at the economic statistics that we're talking about today to understand why we just can't afford to do that right now."

Britain's competition watchdog has dropped investigations into Apple and Google for alleged anticompetitive behaviour.

The two tech giants previously came under fire for imposing charges on app developers and for holding a monopoly over the distribution of apps in the UK.

In a market study published in 2022, the Competition and Markets Authority concluded that both companies had too much influence, restricting open and fair competition in the marketplace. 

The watchdog has now decided to drop its investigation pending new laws governing digital markets that may affect the outcome of any case.

The Digital Markets, Competition and Consumers Act is expected to come into force later this year. 

Apple has recently made changes to its app store policy to allow developers to communicate with potential customers and promote products outside the Apple store.

A Google spokesperson said it had made "a number of significant commitments to further broaden the billing options" available to developers.

Be the first to get Breaking News

Install the Sky News app for free

• Bathing platform
• Hardtop & Roof
• Below waterline
• Engine room
• Fendering insert & lists
• Ladders & bowsprits
• Mooring equipment
• Name signs & logos
• Tenders & Accessories
• Windows & hatches
• Aircon & Heating system
• Buttons, switches and warning lights
• Gas shocks & struts
• Lamps & lights
• Locks, fittings & knobs
• TV & Audio
• Water System & Plumbing
• Watermakers
• White goods
• WC & Holdingtank system
• Electricity
• Engine installations
• Fire equipment
• Fuel systems
• Generator installation
• Propellers & Stern gear
• Screws & Bults
• Stabilizers & trim system
• Steering system
• Gelcoat, paint & glue
• Polishing & waxing
• Teak treatment
• Washing & cleaning
• Cooling & Antifreeze
• Gaskets & Seals
• Accessories for you
• Accessories onboard
• Clothing, ladieswear
• Clothing, menswear
• Safety Equipment
• Chairs & Stools
• Throws & Plaids
• Trays & Baskets
• New products
• Obsolete Parts
• Packing & Bags
• Eberspächer
• Fisher Panda
• Sort by popularity Sort by rating Sort by price: low to high Sort by price: high to low Sort by latest

ALUMINIUM HULL ANODE 4.6KG 229MM BOLT CENTRES

ANODE ALUMINIUM 201180 SIDE POWER

HYPRO MARINE MICRO FILTER ELEMENT

Höveling Golden Teak 1 Cleaner

BATHING PLATFORM ANODE 1.9KG 110MM BOLT CENTRES

ALUMINIUM DISC ANODE 0.8KG

Höveling Golden Teak 2 Brightener

LOXX UNIVERSAL KEY

NORDWEST ANODE FOR IPS WITHOUT ACP

Ultra Glozz Super Vinyl

ALUMINIUM HULL ANODE 1.7KG 200MM BOLT CENTRES

DOMETIC VENT FILTER ECO FOR HOLDING TANKS 16/19/38MM

RUBBER GASKET FOR 2 HOLE/3 HOLE PLATE

Höveling Golden Teak 3 Sealer, teak oil

BATHING PLATFORM LADDER ANODE 1IN

ONAN REPLACEMNET ANODE 0130-4434

O-RING FOR WATER STRAINER 2″. 2″1/2.

RPA009 WINDOW SEAL, 729 MM LENGTH

BLACK BACKING PAD FOR 4,6KG HULL ANODE

ALUMINIUM DISC ANODE 0.4KG

Sign up to our newsletter, princess yachts west sweden / norway / denmark.

VINDÖN, SWEDEN [HQ] Vindön 434, 473 91 Henån T +46 304 390 90 [email protected]

GREVE MARINA, COPENHAGEN, DENMARK Hejren 11, 2670 Greve T +45 70 26 84 84 [email protected]

BERGEN, NORWAY Ytrebygdsvegen 37, 5251 Søreidgrend T +47 55 52 50 30 [email protected]

VOLLEN MARINA, OSLO, NORWAY Vollen Marina 5, 1390 Vollen T +47 66 76 08 70 [email protected]

THE GROUP CONTACT MEET THE TEAM JOBS PRIVACY POLICY

MY ACCOUNT QUICK ORDERING TERMS AND CONDITIONS SHIPPING AND DELIVERIES COMPLAINT AND RETURN

• Select Language

Latest News & Events

Bradley dedman, bradley murphy, sign up to our newsletter.

Sign up now to be the first to hear about our news and updates.

Our Sister Brands