The energy price cap is to be a hiked by a record 80% from October to £3,549 a year, Ofgem has confirmed this morning.
As the rising cost of living crisis worsens and continues to make its impact felt nationwide, and after inflation hit another new 40-year UK high of 10.1% earlier this month, millions of households across the UK on a typical default tariff are set pay an extra £1,578 on their energy bills in as the price cap is raised from 1 October 2022.
It follows an already 54% increase in April, which saw average bills surge to £1,971 a year, and comes ahead of the predicted tripling of average bills in April 2023.
Around 24 million UK households are expected to be affected by the price spike.
The new price cap level is based on “a transparent methodology and calculations” by energy price regulator Ofgem.
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The price cap puts a maximum per unit price on energy that reflects what it costs to buy energy on the wholesale market and supply it to our homes, and it also sets a strict and modest profit rate that suppliers can make from domestic energy sales – but, unlike energy producers and extractors, most domestic suppliers are currently not making a profit, according to Ofgem.
📣The energy #PriceCap is changing and this could affect you
Record high global gas prices mean on Saturday 1 October the energy price cap will rise to an average of £3549 per year
Ofgem says the price cap increase reflects the “continued rise in global wholesale gas prices” – which began surging post-lockdown and have been driven to record levels by Russia slowly switching off gas supplies to Europe.
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The confirmed energy price cap rise also comes as Ofgem’s CEO warns of the hardship energy prices will cause this winter and urges the incoming Prime Minister and new cabinet to provide “an additional and urgent response” to continued surging energy prices.
“We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make,” said Jonathan Brearley – CEO of Ofgem.
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“I talk to customers regularly and I know that today’s news will be very worrying for many.
“The price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately turned off the gas supplies to Europe causing harm to our households, businesses and wider economy [and] Ofgem has no choice but to reflect these cost increases in the price cap.
Ofgem raises energy price cap to £3,549 from October / Credit: Pxhere
“The government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year.
“We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action [but] the response will need to match the scale of the crisis we have before us.
“With the right support in place and with regulator, government, industry and consumers working together, we can find a way through this.”
North West water bills to see the biggest average increase of anywhere in the country in 2026
Emily Sergeant
Water bills in the North West are set to see the biggest increase in 2026 on average.
It has been announced that household water bills in England and Wales will rise by an average of 5.4% overall – which works out to around £33 a year, or approximately £2.70 per month – from April, which is said to be two percentage points above December’s official inflation figure… but when you look closer at the North West, that percentage rises from 5.4% to 9%.
The average United Utilities water bill is set to sit at £660 annually in 2026-27, with that being an increase of £57 from the previous year – the largest increase of anywhere else in the country.
Water UK says the nationwide rise in bills reflects the ‘significant investment’ being put towards upgrading water infrastructure.
More than two million households currently receive help with their water bills. An extra 300,000 households are expected to receive support in 2026-27. Find out more: https://t.co/DSDpAmawX8pic.twitter.com/N2LFpjxEQE
Water companies are said to be currently in the process of delivering a £104 billion investment programme to secure the nation’s water supplies, support economic growth, and end sewage entering our rivers and seas.
The money raised by water bills can only be used to fund infrastructure that is independently determined to be ‘new, necessary, and value for money’.
The regulator says United Utilities will begin a £3 billion upgrade in 2026 of the 110 km Haweswater Aqueduct, which carries 570 million litres of water every day to 2.5 million people in Cumbria, Lancashire, and Greater Manchester (or nearly 5% of England’s population), hence water bills increasing at a higher rate to other areas.
North West water bills are set to see the biggest average increase in 2026 / Credit: Raibeart MacAoidh (via Geograph)
“We understand increasing bills is never welcome, but the money is needed to fund vital upgrades to secure our water supplies, support economic growth and end sewage entering our rivers and seas,” explained David Henderson, who is the Chief Executive at Water UK.
“While we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult.
“That is why we will help around 2.5 million households – more than ever before – with average discounts of around 40% off their water bill.”
More than two million households currently receive help with their bills through social tariffs, the WaterSure scheme, and other affordability measures, and an extra 300,000 households are expected to receive support in 2026-27, taking the total number to around 2.5 million.
Those who are struggling should contact their water company to see what help is available, as support can often be tailored to individual circumstances.
Featured Image – Sora Shimazaki (via Pexels)
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Deansgate bar Simmons closes just over a year after opening
Danny Jones
London-born bar brand Simmons has closed their Manchester site just over a year after opening their first Northern location.
They’ve lasted roughly 15 months on one of our busiest nightlife strips.
Opening on Deansgate back in October 2024, Simmons Manchester wasn’t just their first foray here up in this half of the country but their only other venue outside of the capital.
An otherwise well-established and popular chain down south, they have a total of 15 different bars in central London, but things clearly haven’t quite taken off as planned here in Manchester.
Placing a poster in the unit’s shopfront besides the likes of Be At One, Yours, The Moon Under The Water Spoons and the Deansgate branch of Slug and Lettuce, as you can see, the fellow franchise founded over a decade ago said: “After much consideration, we’ve made the difficult decision to close our doors.
“It’s never easy to say goodbye”, they add, “We’re incredibly proud of what the team built here and so grateful to them, as well as everyone who joined us over the past year.
“We’ve had some unforgettable nights. We love Manchester, and we hope to be back under the right conditions.”
They go on to thank everyone for being “part of the journey”, but for now, it looks like the room has closed effective immediately.
Simmons started back in 2012 when founder Nick Campbell opened the first bar below his flat in Kings Cross, and their presence has grown hugely since then. The closing sign was spotted and shared on social media earlier this week.
Offering everything from stylish cocktails to New York-style pizza, live music and even private karaoke booths, the place had plenty going on.
With rising business rates, energy bills and more dovetailing with the continuing cost of living crisis that is still hampering both hospitality and the nightime economy, they are just one of many to unfortunately close their doors of late.
For instance, it was only earlier this month that we saw multiple well-known names shut up shop here in the city centre or elsewhere in Greater Manchester, including another long-standing late-night favourite, Revolution.
It’s a shame for any business to close, and we certainly hope they’ll return someday with a model that can be sustained in the current climate.
Emily Sergeant -
26th August 2022 
