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.
ADVERTISEMENT
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.
ADVERTISEMENT
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.
ADVERTISEMENT
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
News
NYC Mayor Zohran Mamdani gives thoughts on Andy Burnham running for Prime Minister
Emily Sergeant
Mayor of New York City, Zohran Mamdani, has given his thoughts on Andy Burnham’s intention to run for Prime Minister.
In case you missed it, after it was announced last Friday that Andy Burnham had clinched the victory in the crucial Makerfield by-election, winning 24,927 votes (54.8% vote share) and a majority of 9,231, he then went onto announcing his intentions to run for Labour Party leader, and therefore Prime Minister, after Keir Starmer confirmed he would be stepping down.
Greater Manchester‘s next Mayoral Election has also been announced, given that Burnham is now not eligible to stay in the role – with the date set for Thursday 30 July and candidates frequently being announced.
Talk of Burnham’s chances of running the country have been around for months now, but have ramped up considerably over the past week of course in the wake of his by-election win.
It’s fair to say that for much of Andy Burnham’s time as Mayor of Greater Manchester, especially in the wake of the COVID-19 pandemic, he was up there as one the most famous Mayors in the world… but over the past year, he’s arguably had to hand that unofficial title over to Zohran Mamdani, the current Mayor of New York City.
Mamdani is considered to be a democratic socialist, and campaigned for things like progressive, affordability-focused platform, supporting fare-free city buses, universal child care, city-owned grocery stores, a rent freeze on rent-stabilised units, additional affordable housing units, and a $30 minimum wage by 2030.
He has also expressed support for LGBTQ+ rights, comprehensive public safety reform, and tax increases on corporations and those earning above $1 million annually.
Mamdani was elected Mayor of New York City last October, and was officially sworn in on New Year’s Day at the start of this year.
Since then, he has successfully – very successfully, in fact – made a name for himself around the world, and has even managed to deliver on a good chunk of what he set out to do in his campaign, seeing many calls for him to become President one day.
Oh, and he’s also a massive (and very knowledgeable) football fan – an Arsensal fan, to be precise, but football in general really.
Appearing on BBC’s Football Daily podcast this week to talk about his love of the sport as the US currently hosts the 2026 FIFA World Cup, Mamdani was also asked to give his thoughts on Andy Burnham and his upcoming run to be Prime Minister.
“I don’t think anything comes with ease at that kind of a level,” Mamdani started out in response to host Mark Chapman’s question.
“I do think they are very important skills because many people have lost faith in Government, the place they earn that faith back, they decide to trust again, is at the most local level. That’s where they see what it’s like to have a Government that delivers for them.
“And if you’re able to respond to people, whether it’s in Greater Manchester or New York City, it is at the heart of what people are looking for for any kind of politics.
Mamdani then closed out his thoughts by questioning: “I don’t think he’s an Arsenal supporter though?” and when the hosts clarified that Burnham is an Everton fan, Mamdani responded: “Well at least you can respect that someone has suffered.”
He concluded: “No but like, I like it when I meet someone who’s a fan of a team that hasn’t just won and won and won.”
Featured Image – Wikimedia Commons
News
Trendy Ancoats wine bar Blossom Street Social to close after six years
Emily Sergeant
Trendy neighbourhood wine bar Blossom Street Social has announced its closure after nearly seven years serving the Ancoats community.
Blossom Street Social first opened its doors back in 2019, just months before the country – and the res of the world – was plunged into the COVID-19 lockdowns, but despite all the challenges during the early days, this wine bar went on to become a true staple of Ancoats life – hosting events, exhibitions, wine tastings, and everything in between.
But now, the owners have had to make the heartbreaking decision to close, saying they’ve ‘danced our last dance, played our last record, and poured our last glass of wine in Ancoats.’
Announcing the news in a statement to social media this week, Blossom Street Social said: “Blossom Street Social closes its doors after six and a half years at the heart of the Ancoats community.
Blossom Street Social has announced its closure after six years / Credit: The Manc Group
“When we opened in 2019, just months before the world changed forever, we couldn’t possibly have imagined the journey ahead. Through lockdowns, uncertainty and everything that followed, we somehow managed to build something that became far more than a wine bar.
“Wine was always at the heart of what we did, but so were the conversations, the music, the art and the community that grew around it.
“We’ve hosted tastings, exhibitions, launches, celebrations, social sessions and countless memorable nights. We’ve introduced people to wines they’d never tried before, watched friendships form and shared in some truly special moments.
“We’ve watched first dates become engagements, engagements become marriages, and couples return with babies in tow. We’ve celebrated birthdays, anniversaries, new homes and countless milestones alongside you. We’ve shared conversations, laughter, music and moments that mattered from our little corner of Ancoats. We will never forget them.”
The team then went on to thank ‘every customer, artist, DJ, supplier, collaborator and friend’ who became part of their story.
The owners also gave a special thank you to the staff members who stayed ‘to the very end’ and ‘showed up when it was hard’, admitting that they couldn’t have done it without them all.