Ofgem has today announced that the energy price cap will rise by 5% from January for the first quarter of 2024.
After the energy regulator brought the average annual household energy bill to below £2,000 for the first time since April 2022 with its last announcement back in August for the final quarter of 2023, Ofgem has just announced this morning that the energy price cap will unfortunately be rising once the new year rolls around.
The energy price cap is – which is updated every quarter throughout the year – sets a maximum that can be charged to customers for energy bills.
From 1 January 2024, the price cap will increase by 5% on the previous quarter to 31 March, which means that, for an average household paying by direct debit for dual fuel, this equates to £1,928 and a rise of £94 over the course of a year.
The 5% rise also means the average household could be spending around £7.83 extra on bills a month.
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The quarterly energy Price Cap will change from 1 January 2024.
With the rising cost of living crisis sadly continuing the make its impact felt nationwide, the energy price cap increase is sure to mean thousands of Brits will be facing another difficult winter.
According to Ofgem, today’s price cap increase is driven almost-entirely by rising costs in the international wholesale energy market, and is due to “market instability” and “global events” – particularly the ongoing conflict in Ukraine.
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Ofgem’s announcement of the energy price cap rise comes only a few months after a shocking survey by Which? found that nearly nine in 10 (85%) British households admitted to trying to cut back on their energy usage due to rising bills putting significant financial, physical, and emotional strains on consumers.
The same survey also revealed that 13 million Brits didn’t put their heating on when it got cold last winter, as they claimed they were just “too scared” to do so.
Ofgem announces energy price cap will rise by 5% to £1,928 from January / Credit: Pxhere
Ofgem says its “priority” is to “protect consumers” and “ensure they pay a fair price for their energy” this winter.
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“This is a difficult time for many people, and any increase in bills will be worrying,” Ofgem’s CEO Jonathan Brearley commented on the price cap announcement today, “But this rise is a result of the wholesale cost of gas and electricity rising, which needs to be reflected in the price that we all pay.
“It is important that customers are supported and we have made clear to suppliers that we expect them to identify and offer help to those who are struggling with bills.
The Price Cap sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity you use, including the daily standing charge.
Today we have announced what the price cap will be from 1 January 2024.
“We are also seeing the return of choice to the market, which is a positive sign.
“Customers could benefit from shopping around with a range of tariffs now available offering the security of a fixed rate or a more flexible deal that tracks below the price cap.”
Mr Brearley added that people should “weigh up all the information” and “seek independent advice” from trusted sources, all while consider what’s “most important” for them – whether that’s the lowest price, or the security of a fixed deal.
The next quarterly energy price cap announcement covering April – June 2024 is expected to be made next February, Ofgem has confirmed.
Featured Image – Pxhere
News
How will the Government’s new digital ID alternative for alcohol sales work?
Emily Sergeant
All licensed venues across England and Wales now have the choice to introduce digital proof of age for alcohol sales alongside physical.
Instead of having to hand over physical ID that contains personal information, such as names and home addresses, customers now have the choice to simply provide confirmation that they are 18 or over on their phone – helping to better protect privacy and personal safety in the process.
This means that, no matter whether you’re buying a drink at your favourite pub, heading to a festival, or enjoying a night out at a concert, you won’t need to worry if you’ve left your ID at home.
According to the Government, this new change will benefit businesses greatly too, as certified digital services are able to check that an ID is genuine and belongs to the person presenting it much easier than the alternative can, which therefore helps to reduce the risk of any fake or borrowed IDs going undetected.
Well, according to the Government, it could be as simple as a customer showing a QR code for staff to scan, or tapping their phone against a compatible reader, where staff will then receive a clear confirmation on their device that the customer has passed the age check.
This change follows a 2024 Government consultation where it was reported that 72% of respondents supported the use of digital identities for age verification when buying alcohol.
Digital Government Minister Stephanie Peacock reiterated that ‘it will remain an individual or business’ choice whether to use or adopt [digital ID]’ and that physical ID will ‘still remain a valid way’ for customers to prove their age.
“This groundbreaking change in the law will mean you do not need to carry a physical ID, nor hand over sensitive personal information such as your name or address just to prove your age, allowing everyone to feel safer on a night out,” she concluded.
Featured Image – Robin Worrall (via Unsplash)
News
Manchester to host G20 Summit in 2027 with more than a dozen world leaders descending on the city
Emily Sergeant
Manchester has been confirmed as the host city for the G20 Summit next year.
It was already announced back in November last year that the G20 Summit would be coming to the UK in 2027, and plans were apparently already being discussed to host it in Manchester even before Andy Burnham became Prime Minister and Number 10 North was set up.
But now, ahead of this year’s leaders’ summit being held in Miami in December, it has been confirmed that the G20 Summit will arrive in Manchester in November 2027.
Manchester is said to have been picked to host the leaders’ summit because of its ‘cultural heritage’.
Bringing together 19 of the world’s largest economies and two major multilateral bodies – the European Union and the African union – G20 members who will be invited to attend the summit next year make up 85% of global GDP, 75% of international trade, and two-thirds of the world’s population as a whole.
Manchester has been confirmed to host the G20 Summit in 2027 / Credit: 10 Downing Street | Paul Kagame (Flickr)
G20 members are also some of the UK’s closest economic partners, the Government insists.
17 of the UK’s top 20 global export markets attend the summit, as do 18 of the UK’s top 20 sources of foreign direct investment.
The presidency of the G20 is currently held by the US but will pass to the UK after the leaders’ summit hosted by the president at his Trump National Doral Miami golf resort in December.
The 2027 summit will be held at Manchester Central, it has been confirmed, and other locations across the UK will also host other G20 events as part of the year-long presidency, but these are yet to be announced.
Emily Sergeant -
23rd November 2023 
