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| What is the energy price cap and who gets winter fuel payments? | What is the energy price cap and who gets winter fuel payments? |
| (21 days later) | |
| Around 10 million pensioners will no longer get winter fuel payments to help them with bills at the coldest time of year. | Around 10 million pensioners will no longer get winter fuel payments to help them with bills at the coldest time of year. |
| For all customers, energy bills are now at their lowest for two years but are still about £400 higher than they were three years ago. | For all customers, energy bills are now at their lowest for two years but are still about £400 higher than they were three years ago. |
| How much are winter fuel payments and who will get them? | How much are winter fuel payments and who will get them? |
| Until now, winter fuel payments have been given to all pensioners. | Until now, winter fuel payments have been given to all pensioners. |
| They are worth between £100 and £300, depending on the age of the recipient and whether or not they live alone. | They are worth between £100 and £300, depending on the age of the recipient and whether or not they live alone. |
| More than 11.3 million pensioners received the payment in winter 2022-23. | More than 11.3 million pensioners received the payment in winter 2022-23. |
| However, Chancellor Rachel Reeves has announced that from winter 2024, they will only go to pensioners who get pension credit or other means-tested benefits. The policy applies in England and Wales. | However, Chancellor Rachel Reeves has announced that from winter 2024, they will only go to pensioners who get pension credit or other means-tested benefits. The policy applies in England and Wales. |
| About 850,000 households who are eligible to receive pension credit do not claim it, according to figures released by the Department for Work and Pensions last year. | About 850,000 households who are eligible to receive pension credit do not claim it, according to figures released by the Department for Work and Pensions last year. |
| You could be eligible if you are above state pension age and have an income of less that £218.15 a week, or less than £332.95 as a joint weekly income with your partner. Savings are also taken into account. | You could be eligible if you are above state pension age and have an income of less that £218.15 a week, or less than £332.95 as a joint weekly income with your partner. Savings are also taken into account. |
| Disabled people, those caring for someone, and those with housing costs could be eligible despite these factors | Disabled people, those caring for someone, and those with housing costs could be eligible despite these factors |
| The governments in Scotland and Northern Ireland will make a decision on whether to follow the new policy. | The governments in Scotland and Northern Ireland will make a decision on whether to follow the new policy. |
| What is the energy price cap? | What is the energy price cap? |
| The energy price cap covers 28 million households in England, Wales and Scotland and is set every three months, external by the energy regulator Ofgem. | The energy price cap covers 28 million households in England, Wales and Scotland and is set every three months, external by the energy regulator Ofgem. |
| It fixes the maximum price that can be charged for each unit of energy on a standard - or default - tariff for a typical dual-fuel household which pays by direct debit. | It fixes the maximum price that can be charged for each unit of energy on a standard - or default - tariff for a typical dual-fuel household which pays by direct debit. |
| Between 1 July and 30 September, gas prices will be capped at 5.48p per kilowatt hour (kWh), and electricity at 22.36p per kWh. | Between 1 July and 30 September, gas prices will be capped at 5.48p per kilowatt hour (kWh), and electricity at 22.36p per kWh. |
| A dual-fuel direct debit household using a typical amount of energy, external will pay £1,568 per year, a drop of £122. | A dual-fuel direct debit household using a typical amount of energy, external will pay £1,568 per year, a drop of £122. |
| Those who pay their bills every three months by cash or cheque pay £1,668. | |
| However, the forecaster, Cornwall Insight, expected prices to rise again in October, by 9%, and then possibly again in January, owing to rising wholesale costs paid by suppliers. | |
| The cap does not apply in Northern Ireland, which has its own energy market. | |
| What is a typical household? | What is a typical household? |
| Your energy bill depends on the overall amount of gas and electricity you use, and how you pay. | Your energy bill depends on the overall amount of gas and electricity you use, and how you pay. |
| The type of property you live in, how energy efficient it is, and how many people live there, are also relevant. | The type of property you live in, how energy efficient it is, and how many people live there, are also relevant. |
| The Ofgem cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single contract for gas and electricity, which they settle by direct debit. | The Ofgem cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single contract for gas and electricity, which they settle by direct debit. |
| The vast majority of people pay their bill this way, to help spread payments across the year. | The vast majority of people pay their bill this way, to help spread payments across the year. |
| Those who pay every three months by cash and cheque are charged more. | Those who pay every three months by cash and cheque are charged more. |
| In March, Ofgem said it was considering a range of options for changing the current energy cap system, including charging different prices throughout the day to reflect periods of high demand. | In March, Ofgem said it was considering a range of options for changing the current energy cap system, including charging different prices throughout the day to reflect periods of high demand. |
| What is happening to prepayment customers? | What is happening to prepayment customers? |
| From 1 July, households on prepayment meters are paying slightly less than those on direct debit, with a typical bill of £1,522, a drop of £121. | From 1 July, households on prepayment meters are paying slightly less than those on direct debit, with a typical bill of £1,522, a drop of £121. |
| About four million households had prepayment meters in April 2024, according to Ofgem. | About four million households had prepayment meters in April 2024, according to Ofgem. |
| Many have been in place for years, but some were installed more recently after customers struggled to pay higher bills. | Many have been in place for years, but some were installed more recently after customers struggled to pay higher bills. |
| New rules mean suppliers must give customers more opportunity to clear their debts before switching them to a meter, and they cannot be installed at all in certain households. | New rules mean suppliers must give customers more opportunity to clear their debts before switching them to a meter, and they cannot be installed at all in certain households. |
| What are standing charges and how are they changing? | What are standing charges and how are they changing? |
| Although the overall cap has fallen, standing charges - a fixed daily amount which covers the costs of connecting to a supply - are staying the same. | Although the overall cap has fallen, standing charges - a fixed daily amount which covers the costs of connecting to a supply - are staying the same. |
| These are typically 60p a day for electricity and 31p a day for gas, although they vary by region. | These are typically 60p a day for electricity and 31p a day for gas, although they vary by region. |
| Campaigners, including the financial journalist Martin Lewis, have said these charges are unfair because they make up a disproportionately large part of the bill of low energy users. | Campaigners, including the financial journalist Martin Lewis, have said these charges are unfair because they make up a disproportionately large part of the bill of low energy users. |
| Separately, the regulator is also adding £28 to everyone's bill over the year to cover the cost of dealing with £3.1bn of debt that customers owe to suppliers. | Separately, the regulator is also adding £28 to everyone's bill over the year to cover the cost of dealing with £3.1bn of debt that customers owe to suppliers. |
| Should I fix my energy prices? | Should I fix my energy prices? |
| There is always a hope that suppliers offer cheaper, fixed-price deals. | |
| These offer certainty for a set period, but if prices drop, people could find themselves stuck at the higher price. | |
| When considering fixed-price deals, Ofgem says people should seek independent advice and consider what is most important for them - the lowest price or the security of a fixed deal. | When considering fixed-price deals, Ofgem says people should seek independent advice and consider what is most important for them - the lowest price or the security of a fixed deal. |
| Price comparison website Uswitch warned customers to check whether fixed deals had exit fees before signing up, look closely at forecasts, and at what is being offered. | |
| What extra help can I get with my energy bills? | What extra help can I get with my energy bills? |
| The £500m Household Support Fund,, external which was introduced in September 2021 to help vulnerable customers, had been due to end in March 2024. | The £500m Household Support Fund,, external which was introduced in September 2021 to help vulnerable customers, had been due to end in March 2024. |
| However, the previous chancellor Jeremy Hunt announced a six-month extension in the spring Budget. | However, the previous chancellor Jeremy Hunt announced a six-month extension in the spring Budget. |
| The Warm Home Discount scheme, external continues to offer a discount to eligible pensioners and low income households. | The Warm Home Discount scheme, external continues to offer a discount to eligible pensioners and low income households. |
| The government's Fuel Direct Scheme, external can help people to repay an energy debt directly from their benefit payments. | The government's Fuel Direct Scheme, external can help people to repay an energy debt directly from their benefit payments. |
| In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills. | In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills. |
| Most suppliers also offer hardship grants. | Most suppliers also offer hardship grants. |
| What can I do if I can't pay my energy bill? | What can I do if I can't pay my energy bill? |
| What can I do if I can't pay my energy bill? | What can I do if I can't pay my energy bill? |
| Ofgem: Help with bills, external | Ofgem: Help with bills, external |
| Ofgem: Help with bills, external | Ofgem: Help with bills, external |
| Related Topics | Related Topics |
| Energy customer switching | Energy customer switching |
| Ofgem | Ofgem |
| Personal finance | Personal finance |
| Energy industry | Energy industry |
| Cost of Living | Cost of Living |
| The world explained | The world explained |
| Oil & Gas industry | Oil & Gas industry |