Ofgem has proposed new plans to adjust the energy price cap every three months instead of the current twice a year.
The energy price cap – which is the mechanism that outlines the maximum amount that companies can charge to provide energy – has been credited with protecting around 22 million UK households from the worst of the price hikes after COVID-19 restrictions were eased and the war in Ukraine pushed up wholesale gas prices.
The cap prevented companies from passing on unprecedented increases to their customers.
According to the government, the cap was said to have delayed the impact from the most damaging element of the ongoing cost of living crisis, after the average bill rose by 54%, or £693 annually, from April to £1,971, and the latest forecasts suggest bills could rise to almost £2,600 in October when the next price cap adjustment is due.
But now, industry regulator Ofgem revealed in a statement today that it was putting the idea of more regular adjustments of the cap out to consultation.
ADVERTISEMENT
This proposed plan is said to have come after there was criticism expressed that the present twice-yearly adjustment arrangement had contributed to the collapse of several suppliers last year at the height of the wholesale gas price shock, Jonathan Brearley, chief executive of Ofgem, said adjusting the cap more regularly would “reflect the most accurate energy prices”.
He also said it means that when costs fall from the current record highs, customers would “see the benefit much sooner”.
ADVERTISEMENT
After extensive research, stakeholder feedback & talking with consumers, we're proposing to update the price cap every 3 months rather than every 6 months
This would make suppliers more resilient & any savings can be passed on to consumers quicker
Ofgem said in a statement: “Our top priority is to protect consumers by ensuring a fair and resilient energy market that works for everyone.
“Our retail reforms will ensure that consumers are paying a fair price for their energy while ensuring resilience across the sector [and] today’s proposed change would mean the price cap is more reflective of current market prices and any price falls would be delivered more quickly to consumers.
“It would also help energy suppliers better predict how much energy they need to purchase for their customers, reducing the risk of further supplier failures, which ultimately pushes up costs for consumers.”
In response to the Ofgem statement issued on the price cap, a government spokesman said: “We recognise the pressures people are facing with the cost of living, which is why we have set out a £22 billion package of support, including rebates and reductions for energy bills, as well as more targeted support for low income and vulnerable households.
“The price cap continues to insulate households from even higher global gas prices [and] that’s why we have also outlined plans to extend the cap beyond 2023.”
Featured Image – RawPixel
News
NHS says it’s the busiest it has ever been heading into winter as ‘damaging’ strikes begin
Emily Sergeant
The NHS has claimed it’s currently the ‘busiest it has ever been’ as we head into the winter.
While it has been revealed that the health service’s waiting list is 230,000 lower than this time last summer, and down 15,845 compared to the previous month, figures released this week show that the NHS is ‘approaching its limit’ as we head into winter – with A&E, ambulances, and more all facing record demand.
As the colder months edge closer, and a likely spike in flu cases is expected in the coming weeks, the NHS says it’s the ‘busiest it has ever been’.
It also comes during what officials are describing as ‘damaging’ industrial action.
From Friday and into next week, some NHS services will be affected due to strike action. Please continue to come forward for NHS care.
If you need urgent medical help, use 111, and if it is a serious or life-threatening emergency, please call 999. pic.twitter.com/ym87CQ3CRR
Last month, both A&E attendances and ambulance incidents were at a record high for October, with A&E attendances at 37,000 higher than October 2024, equating to over 1,200 more attendances per day this October.
Ambulance incidents also jumped nearly 50,000 compared with October last year (806,441), the NHS has confirmed.
“It is fantastic news that the health service managed to get the waiting list down in September, but there’s no doubt NHS staff will be approaching their limits this winter,” commented Professor Meghana Pandit, who is the NHS National Medical Director.
The NHS says it’s the busiest it has ever been heading into winter amid ‘damaging’ strikes / Credit: Stephen Andrews (via Unsplash)
“Flu is peaking early and looking like it will be long lasting, while industrial action comes on the back of the busiest October in A&E in NHS history.
“Staff continue to work incredibly hard and, as ever, the public can play their part.”
Despite the health service being stretched during this time, the public are still advised to attend any planned appointments that are scheduled during the ongoing strikes, unless they have been contacted to reschedule.
Primary and urgent and emergency care services will continue to be available for those who need them.
The public should use 111 online as the first port of call for urgent but not life-threatening issues during industrial action so that they can be directed to the best place for their needs, but patients who do need emergency medical care should continue to use 999 or come forward to A&E as normal.
Featured Image – Pxhere
News
Government sets date for ‘historic’ no-fault evictions ban next year
Emily Sergeant
The Government has officially set the date for the ban of no-fault evictions next year.
Renting in England is expected to be ‘transformed’ with a raft of major changes coming into effect as part of the new Renters’ Rights Bill from 1 May 2026 for 11 million people across the country – and this, crucially, includes the end of Section 21 evictions at no-fault of the tenant.
As it stands, Section 21 notices leaving thousands of people vulnerable to homelessness every year, but in just under six months’ time, private renters will no longer face this threat.
To the vast majority of renters and landlords who play by the rules, this government has got your back.
Further measures announced as part of the new Renters’ Rights Bill – which has now been passed in law – include a ban on rental bidding wars, making landlords and letting agents legally required to publish an asking rent for their property and prevented from asking for, encouraging, or accepting any bids above this price, and also a ban on in-tenancy rent increases written in to contracts.
The latter will prevent landlords from implementing higher rents mid-tenancy, and only allow them to raise the rent once a year to the market rate.
Landlords will also no longer be able to unreasonably refuse tenants’ requests to have a pet, nor will they be able to discriminate against potential tenants, because they receive benefits or have children.
‘No-fault’ evictions are now banned in England under historic new legislation / Credit: Maria Ziegler (via Unsplash)
On the flip side, however, the new Bill means landlords will have stronger legally valid reasons to get their properties back when needed – whether that’s be to move in themselves, sell the property, or deal with rent arrears or anti-social behaviour.
The Government says this will work to deliver a fairer system for both sides.
“We’re calling time on no fault evictions and rogue landlords,” commented Housing Secretary, Steve Reed. “Everyone should have peace of mind and the security of a roof over their head, and the law we’ve just passed delivers that.
“We’re now on a countdown of just months to that law coming in, so good landlords can get ready and bad landlords should clean up their act.”
Alongside the Renters’ Rights Act, an ‘improved’ Housing Health and Safety Rating System, which will better assess health and safety risks in homes and making it more efficient and easier to understand, will also be introduced.
And there are also planned new standards to ensure privately rented properties are warmer and cheaper to run.
The Manc -
16th May 2022 
