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.”
Luxury Manchester gym Blok confirms permanent closure after weeks of uncertainty
Daisy Jackson
Blok Manchester has announced its permanent closure, weeks after the doors to the premium fitness facility mysteriously closed.
Around a fortnight ago, members began to arrive to their classes to find the gym on Ducie Street locked up and a forfeiture notice on the door – but at the time, Blok said that it was fighting to reopen.
Sadly, in an email sent to members today, its founder has confirmed that the studio is now permanently closed.
Blok – which has several very successful sites down in London – said that its relationship with its landlord has ‘broken down to a point where trust has been lost’.
The gym wrote that it’s been left with ‘no workable way forward’.
They said: “BLOK Manchester was a space built by our loyal and dedicated community. Whether you joined us for one class or one hundred, we are deeply grateful. You helped create something genuinely special in an incredible city.”
In the immediate future, they said they’ll be supporting the team of fantastic trainers who worked here, as well as looking after members.
Members will be contacted within a few hours with options and refunds owed.
Blok Manchester has announced its permanent closure. Credit: The Manc Group
CEO and founder Ed Stanbury said: “While this marks the end of a chapter, we don’t see it as the end of our story in Manchester. We’re already speaking with developers about potential future sites and remain committed to returning to the city when the time is right.
“Thank you for being part of our story so far. Let’s shape the future of wellness. The mission continues.”
Commenting on Blok’s Instagram post – its first in almost a fortnight – people have been sharing their sadness at the closure of its Manchester site.
One person wrote: “beautiful space, beautiful staff and beautiful community.”
Another said: “Sending love to all the instructors !! :(((( gutted”
Someone else commented: “THE BEST CLASSES. I’m gutted.”
‘The average cost of a pint’ in the UK by region, according to the latest data
Danny Jones
Does it feel like pints keep getting more and more expensive almost every week at this point? Yes. Yes, it does, and while you can’t expect a city as big as Manchester to be one of the cheapest places to get one in the UK, we do often wonder how it compares to other parts of the country.
Well, as it happens, someone has recently crunched the numbers for us across the nation, breaking down which regions pay the most and the least for their pints.
The data has been examined by business management consultancy firm, CGA Strategy, using artificial intelligence and information from the latest Retail Price Index figures to find out what the ‘average cost of a pint’ is down south, up North and everywhere in between.
While the latest statistics provided by the group aren’t granular enough to educate us on Greater Manchester’s pint game exactly, we can show you how our particular geographic region is looking on the leaderboard at the moment.
That’s right, we Mancunians and the rest of the North West are technically joint mid-table when it comes to the lowest average cost of a pint, sharing the places from 3rd to 8th – according to CGA, anyway.
Powered by consumer intelligence company, NIQ (NielsenIQ) – who also use AI and the latest technology to deliver their insights – we can accept it might seem like it’s been a while since you’ve paid that little for a pint, especially in the city centre, but these are the stats they have published.
Don’t shoot the messenger, as they say; unless, of course, they’re trying to rob you blind for a bev. Fortunately, we’ve turned bargain hunting at Manchester bars into a sport at this point.
We might not boast the lowest ‘average’ pint cost in the UK, but we still have some bloody good places to keep drinking affordable.
London tops the charts (pretends to be shocked)
While some of you may have scratched your eyes at the supposed average pint prices here in the North West, it won’t surprise any of you to see that London leads the way when it came to the most expensive pint when it came to average cost in the UK.
To be honest, £5.44 doesn’t just sound cheap but virtually unheard of these days.
CGA has it that the average cost of a beer in the British capital is actually down 15p from its price last September, but as we all know, paying upwards of £7 for a pint down that end of the country is pretty much par for the course the closer you get to London.
Yet more reason you can be glad you live around here, eh? And in case you thought you were leaving this article with very little, think again…
Emily Sergeant -
26th August 2022 
