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.”
Sara Cox tipped to replace Scott Mills for Eurovision 2026
Danny Jones
Greater Manchester’s very own Sara Cox is reportedly set to replace Scott Mills at the 2026 Eurovision Song Contest following his sacking from the BBC.
Mills was axed by the news and entertainment corporation on Monday, 1 April, for ‘misconduct’, which has now been revealed to involve a historic relationship with a boy aged under 16.
While the fallout surrounding Scott Mills is only just beginning, the task of finding his replacement in multiple roles has already begun – though it looks like one may have already been decided.
Now reported by multiple outlets, it appears as though Bolton-born Sara Cox is first in line to pick up Mills’ co-hosting duties for this year’s Eurovision show.
Having already been involved with coverage of the event on multiple ocassions in the past, it now appears that she’ll be in post for the Grand Final too.
As a long-standing radio and TV staple, it only takes a quick look at social media to see how much backing she has already received in the past, with a post from last year reading, “Great to have Sara Cox back commentating on Eurovision“, and others from over a decade ago praising her past presenting.
In fact, it might not end just here either, as many are already calling for her to replace the 53-year-old breakfast show host.
From her days as a Radio 1 favourite to becoming a BBC mainstay across the board, her popularity only seems to have grown over the last decade, especially thanks to her charity fundraising efforts.
While an official announcement is yet to be made, the feeling is that it is all but confirmed for her to take over from Mills as part of the Eurovision commentary team.
As for the now vacant early morning slot on BBC Radio 2, the likes of Claudio Winkleman, Vernon Kay, fellow Manc Nick Grimshaw, the aforementioned Rylan, and several others have all been floated as potential stand-ins/future full-time hosts.
Do you think both should be given to Sara Cox, and if not, who would you like to see replace Scott Mills?
Millions of UK workers to get pay rises from today as National Living and Minimum Wage increases
Emily Sergeant
Millions of workers across the UK are set to begin receiving substantial pay rises from today.
After the Government announced back in November that it would take the recommendations made by the Low Pay Commission, and increase both the National Minimum Wage and National Living Wage, those changes have now come into force in a bid to ensure people on lower incomes are ‘properly rewarded’ for their work.
If you’re unfamiliar with the Low Pay Commission, it’s an independent body made up of employers, trade unions, and experts whose role is to advise the Government on the minimum wage.
As mentioned, the rate recommendations introduced today were agreed unanimously by the Commission.
This means that the living wage, for eligible workers who are aged 21 and over, has now risen by 4.1% from today to £12.71 an hour.
For a full-time worker, that means a pay increase of £900 a year.
Millions of workers in the UK are getting pay rises from today / Credit: John Kakuk (via Unsplash) | Pexels
The National Minimum Wage rate for workers aged 18 to 20-year-olds has also increased today by 8.5% to £10.85 an hour, and then for 16 to 17-year-olds, and those on apprenticeships, the rate has increased by 6% to £8 an hour.
“The recommendations we made last autumn sought to balance the need to protect the economy and labour market, whilst providing a real-terms increase for the lowest-paid members of society,” commented Baroness Philippa Stroud, who is Chair of the Low Pay Commission.
“A lot has changed since we gave our advice to the Government last autumn, and we are now beginning to gather evidence for recommendations later this year.
“The current economic uncertainty makes it essential that the Commission hears from those affected by the minimum wage and builds consensus for evidence-based recommendations.
Workers aged 21 and over are now legally entitled to the National Living Wage after the age threshold for the highest rate was lowered from 23 in 2024.
National Minimum Wage rates are available to workers aged 16 upwards.
Emily Sergeant -
26th August 2022 
