Ofgem has confirmed that the energy price cap in the UK will rise to at least £2,800 in October, pushing household bills up to £233 a month.
The regulator revealed the hike in prices this afternoon, as its chief executive, Jonathan Brearley, told the Business, Energy and Industrial Strategy Committee that Ofgem anticipates the new price cap this October will be “in the region of £2,800”.
Mr Brearly even suggested that “it’s quite possible this [price cap] could go higher”, telling the Committee: “The volatility in the gas market is huge.”
Currently, the energy price cap sits at £1,971 – having increased by over 50% in April.
That means that, within the space of six months, the regulator’s energy price cap in the UK will have risen by £1,512.
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Currently, here in the UK, there are nearly 6.5 million people living in poverty. However, Ofgem is now warning the government that this could well double in October when the price cap goes up again.
The Ofgem Chief Exec has told MPs the price cap will rise c42% in Oct putting typical use to £2,800/yr. I'm glad he's been open about this, I asked last week for them to publish forward guidance.
This is higher than analysts predictions of £2,600 (both bloody awful though)
With UK inflation at the highest it has been in 40 years, many struggling households are also seeing price rises at fuel pumps and in the supermarket.
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Mr Brearly told the committee that costs are currently rising at a “once in a generation” rate “not seen since the 1970s”, and that this issue is something that only the government could address.
National Insurance tax has just been increased by the Chancellor in his spring budget, too, meaning that people are taking home less money as prices soar.
Soaring energy bills are considered to be the biggest inflation driver in the UK right now, and there is increasing pressure on the government to do more to help families and children who are slipping into poverty as a result of the cost of living emergency.
Whilst the government has said it is willing to support people, it is yet to deliver any solutions – such as introducing a Windfall Tax on energy companies or restoring the £20 a week Universal Credit uplift to help the country’s worst off.
Labour has called the price cap news ‘extremely concerning’, adding that it “will cause huge worry for families already facing soaring bills and rising inflation”.
Shadow Chancellor Rachel Reeves said: “How many more alarm bells does the chancellor need to hear before he acts? The government have got to get a grip on this crisis and to protect families and our economy.
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As @ofgem warns that the energy price cap is expected to rise to £2,800 in October, we take a look at what help is available, if you're struggling to pay your bills. https://t.co/48t49gzVFI
“Yet again, Labour calls urgently on the government to bring forward an emergency budget, with a windfall tax on oil and gas producer profits to lower bills for families.”
Boris Johnson’s spokesperson maintained that the government is already offering help which will be ‘phased throughout the year’.
They said: “Some of the support is designed to come in in October, £200 will be discounted from energy bills, the warm home discount will increase to £150 and be expanded to cover three million people, cold weather payments and winter fuel payments will be available again,” the spokesman said.”
Feature image – RawPixel
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Police confirm man was arrested ‘on suspicion of making an explosive device’ in Gay Village
Daisy Jackson
Police have confirmed that the man who was detained in the midst of an incident in the Gay Village yesterday was arrested on suspicion of making an ‘explosive device’.
A huge cordon was in place in the Canal Street area in the city centre on Monday 11 May, after members of the public reported a ‘chemical smell’ coming from a hotel at around 10.45am.
Emergency services attended the scene and found chemical substances in a hotel room.
The man, who was believed to be the occupant of the hotel room, was detained at the scene.
Greater Manchester Police have since confirmed that he was ‘detained on suspicion of making an explosive device’ and was taken into custody for questioning.
In an update shared yesterday, they wrote: “The response to the incident on Canal Street in Manchester city centre is being reduced following reports of chemical substances being found.
“Emergency services examined items within a room inside a hotel following calls from the public at about 10:45am.
“A man, believed to be the occupant of the room, was detained on suspicion of making an explosive device and is currently in custody being questioned.
“Chemical substances found in the room have been examined and are in the process of being safely removed. The subsequent examination ruled out any explosive risk.
“We are working with the hotel management to return the establishment to normal after staff and guests were evacuated as a precaution.
“Staff from the fire service’s Hazardous Materials and Environmental Protection team remain in attendance to conduct tests and ensure the area is safe.
“We would like to thank the public and surrounding businesses for their patience as we continue with our work.”
No trams to run on major Greater Manchester line for two weeks as part of £150m improvement works
Emily Sergeant
Major disruption is on the horizon, as no trams are set to run on a major Greater Manchester line for two weeks this month.
As the next phase of the ongoing £150m investment into Greater Manchester’s tram network gets under way this month, essential track replacement work is set to be be carried out in a bid to make the network ‘safer’ and ‘more resilient and reliable’ for years to come.
Due to improvement works on the Oldham-Rochdale line – which is being carried out between Monsall and Newton Heath & Moston – there will be no trams between Manchester Victoria and Rochdale town centre for two weeks, starting from this Saturday 16 May right through to Friday 29 May.
The work being carried out will involve replacing sections of track and improving drainage along the route.
The track foundation will also be replaced where needed, as well as work to correct the alignment and level of the track.
No trams will be running on a major Greater Manchester line for two weeks from this weekend / Credit: TfGM
Transport for Greater Manchester (TfGM) has conceded that this is a ‘big and complex job’ – with 290 new concrete sleepers and 2,000 tonnes of pea gravel being used, and more than 5,000 tonnes of ballast set to be replaced.
But, when the work is done, it’s aiming to make journeys ‘smoother and more reliable’ for passengers, while improving the condition of the track for the long-term.
While the work is being carried out and the line is closed, bus replacement services will be in place between Victoria and Rochdale Town Centre, and more frequent Bee Network bus services will also call at the bus stops near each tram stop too, however tram tickets will only be accepted on the replacement bus, not on numbered bus services.
Elsewhere, work at Derker will also take place at the same to ‘minimise disruption’.
The track was made safe following a landslip in summer 2024, but now, a longer-term solution will see teams drive steel sheets into the ground to hold it in place and prevent further movement, before further work will be needed later in the year to complete the job.
And to top it off, from Monday 25 to Friday 29 May, improvement work to update equipment that has been in place since the line opened in 1992 will also take place at Piccadilly Gardens, and that means no trams will run between St Peter’s Square/Market Street and Piccadilly during this time.
Customers may need to change trams, take a short walk, or hop on the free bus to continue their journey.
Tram services will resume as normal from the start of service on Saturday 30 May, and passengers travelling during this period are urged to ‘plan ahead’.
Everything you need to know about the planned works is on the TfGM website here.