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.”
Andy Burnham explains why Number 10 North is so important as it officially ‘opens for business’
Emily Sergeant
Andy Burnham has explained his key reasons for launching Number 10 North as it officially ‘opens for business’ this week.
You may remember that earlier last month, Andy Burnham revealed he had intentions to create a Number 10 North if he was to become Prime Minister, with the new base expected to be a ‘dominant driver of the UK’s economy’ once it was officially up and running… and now, fast forward to today, Number 10 North is officially ‘open for business’.
Operating from Heron House in Manchester city centre, as previously reported on, Number 10 North will be the Government’s new ‘situation room for growth’.
It also brings the ‘levers’ of local economic growth and devolution together under one roof for the first time ever.
Number 10 North has officially ‘opened for business’ / Credit: gov.uk (via Wikimedia Commons)
With the Prime Minister expected to work from Number 10 North each week, so that decisions about the country’s economic future will no longer exclusively be made in Westminster, and with other ministers also working from there on a regular basis, the Government says the move underlines its determination to ‘do things differently’.
Now that Number 10 North has officially opened, Andy Burnham and his fellow ministers have explained why this move is so important for not just Manchester, but the north as a whole.
“For 40 years, power and resources have been sucked into the centre, and too many communities have felt forgotten, without the attention and investment they deserve,” explained Andy Burnham.
“Number 10 North will change that by putting more power into every postcode across the entire country. It will be the situation room for making Britain better, the place we use to get power out of Westminster, into the hands of people at a local level, so that they can turn things around.
“The days of Whitehall resisting devolution are over, for good.”
First Secretary Louise Haigh added: “Today marks a fundamental re-balancing of where power sits in our country. Number 10 North has been set up to drive economic growth in every postcode and put power in the hands of every community.
“Through this department, this Government will ensure that the places overlooked by Westminster for decades are given a real voice.
“Number 10 North is open for business.”
Featured Image – The Manc Group
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Scissors, toy guns, and baseball bat among 100+ items confiscated by security at Manchester Airport
Emily Sergeant
Manchester Airport has revealed a shocking list over 100 items confiscated by security staff in just one morning.
And honestly, you won’t believe some of the things people have tried to take on a plane.
With schools across Greater Manchester having now broken up for the summer holidays, and families getting ready to jet off on their holidays, Manchester Airport is urging all passengers travelling over the next six weeks to make sure they know the hand luggage rules before boarding the plane, after more than 100 items recently had to be confiscated by security in one morning alone.
12 pairs of scissors, 10 toy guns, seven corkscrews, four knives, two loose chisels, a pair of pliers, and even a baseball bat were among the items forming part of the shocking confiscation haul.
On top of this, security also confiscated dozens of cosmetic products, drinks bottles, and food items like multipacks of yoghurts.
Scissors, toy guns, and a baseball bat are among 100+ items confiscated by security at Manchester Airport / Credit: Manchester Airport
Although new 3D scanning technology has been installed at both of Manchester Airport’s terminals now, making the process smoother overall, those travelling during the busy summer period are reminded that attempting to bring non-compliant items through airport security causes delays for themselves and for others.
Airport security bosses are encouraging people to reacquaint themselves with the rules for hand luggage before packing for their journey.
“We’re proud of the role we play in getting people’s journeys off to the right start, and more than 97% of our passengers are getting through security checks in under 15 minutes,” commented Sakib Mahmood, who is the Security Duty Manager for T2 at Manchester Airport
All if these items were confiscated in just one morning / Credit: Manchester Airport
“But each time we have to pull a bag aside for a manual search it can take several minutes, and that can quickly start to add up and create delays.
“The range of items confiscated here in just a few hours shows what our security officers are up against every day, but when it comes to working out what is restricted and what is not, we know some items are more obvious than others.
“If you take a moment to reacquaint yourself with the rules before packing your hand luggage, it can save you lots of time when you get to Security, and avoids you losing items like water guns or bottles of suncream that you want to take on your holiday with you.
“In many cases, items like these which may fall foul of hand luggage restrictions can be taken in your hold luggage, so if in any doubt, pack the item in your suitcase rather than your carry-on bag.”