Energy bills will soar by at least £500 next month

People will be paying at least £500 a year more for the gas and electric from April, with many not getting any direct financial support for it.

Energy regulator Ofgem has set a new price cap, seeing the average bill rise to an eye watering £3,200 despite global gas prices dropping.

More pressure is being put on the government to offer more support to billpayers ahead of April’s price rise.

The announcement will not affect what customers pay for each unit of gas and electricity because that is limited by a government guarantee.

In effect, the typical annual household bill is set to rise from £2,100 to £3,000 in April.
Chancellor Jeremy Hunt previously told the BBC that although the policy remained under review, he did not think the government had the “headroom to make a major new initiative to help people”.

Ministers also point out wider support, such as rising benefit payments in April, will help people.

The consumer finance expert Martin Lewis described the bill rise as a “national act of harm”.

Labour and the Trades Union Congress (TUC) have made the same call.
The Liberal Democrats have gone further and want energy bills to be cut.

The government guarantee, like any energy price cap, does not limit the total bill. It limits the cost per unit of energy.

This is reflected by showing an annual bill for a household that uses a typical amount of gas and electricity – which in April is set to be £3,000. However, a billpayer living in a small, well-insulated flat will use less energy so pay less. Someone in a large, draughty house will pay more.