​New energy price cap announced – but what effect will it have? Feb 28, 2023

New energy price cap announced – but what effect will it have?

The energy price cap will fall to £3,280 per year in April for the average household, down £999 on the current figure.

But what does it mean for your energy bill?

The Government will increase the Energy Price Guarantee up to £3,000 for the average household from April – this is the important figure that affects your fuel bill.

It will mean your energy bills are likely to increase by 20%.

The £3,000 figure is for a typical household and does not mean this is the amount you would pay – it could be higher or lower.

It's based on a direct debit customer using 12,000 kWh (kilowatt hours) of gas and 2,900 kWh of electricity a year.

What is happening to government support for energy bills?

Universal support for everyone will no longer be in place - that’s the extra £400 you received off of your energy bills from October 2022 to March 2023.

However, increased targeted support will be introduced from April.

8m of the lowest income households will receive £900 of support, plus a further £300 for 8m pensioners, and another £150 allocated to 6m people in receipt of non-means tested disability benefits.

Will energy prices come down this year?

Global energy prices have been falling recently, and experts predict cheaper prices for households later this year.

Energy price analysts at Cornwall Insight think the energy price cap will fall to £2,153 in July 2023, and remain close to that level for the rest of the year.

Cornwall Insight says that switching energy supplier for a better deal could become possible again.

Where can I get extra support?

We have a comprehensive library of information and advice on how to best cope with the high cost of energy.

There is a wide range of support schemes available if you are eligible.

We've picked out the main ones:

  • Energy Company Obligation funding is available if you meet certain criteria - we are currently working throughout Yorkshire and Lincolnshire to provide households with funding for energy efficiency upgrades
  • Warm Homes Discount – households could receive a discount on their energy bills if they receive Pension Credit Guarantee or have a low income
  • Winter Fuel Payment – people over the state pension age could receive an annual payment to help stay warm in the colder months
  • Cold Weather Payment – if you receive certain benefits you could receive a payment if the temperature drops to zero degrees Celsius for seven days

If you are struggling to keep up with your energy bill payments, we recommend speaking to your energy supplier. They may be able to give you additional support through their priority services register.

Share this story

Get Expert Free Advice

Fill in the form below with your details and we will give you a ring back.
This form collects your name, email address and phone number so that we can respond to your enquiry. Your information will only be used for this purpose, please see our privacy notice linked at the bottom of the page to see how we protect and manage your data.

News Categories

Grants & Advice

Find out more about saving energy and the funding opportunities available.

Read More