Costs ease

Latest price cap sees energy bills fall by £238

Gas bill
Energy bills will fall from April

Energy bills will fall on average by more than £200 after the regulator Ofgem announced its price cap for April.

The cap will drop by 12.3% from £1,928 a year to £1,690 for a typical dual fuel household paying by direct debit.

This means the average home will see their annual bill fall by £238. The new cap will come into effect on 1 April and will last until the next revision on 30 June.

Despite the fall, it remains significantly higher than the £993 price in the winter of 2020, before gas and electricity costs started rising.

The price cap covers around 29 million people in England, Scotland and Wales. However, it is not the figure that consumers pay. That depends on how much gas and electricity is used and even location.

The cap sets a limit on the unit price of gas and electricity, as well as the maximum daily standing charge. It is used to describe what someone with typical energy consumption can expect to pay each year, based on how much Ofgem estimates the typical household uses.

The latest cap was announced as GfK’s consumer confidence index index showed a fall this month from a two-year hight in January.

Earlier this month the UK slipped into a technical recession in the last quarter of 2023. 

However, Joe Staton, client strategy director at GfK, said: “The good news is that optimism for our personal financial situation for the next 12 months has not slipped back.’

Chancellor, Jeremy Hunt is also expected to cut some taxes in his Spring Budget and inflation and interest rates are on the way down.

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