- Ofgem’s energy price cap will mean average dual fuel bills will rise by £111 a year from 1 April
- Price cap will rise from current £1,738 to £1,849 a year – higher than had been forecast as wholesale gas prices rise
- It’s set to be another ‘Awful April’ for households which will also face increases in water bills, council tax and broadband, though benefits, pensions and the national living wage will go up
Danni Hewson, AJ Bell head of financial analysis, comments on the latest Ofgem energy price cap:
“News that energy bills are set to rise for the third time in a row in April and by more than had been forecast will be unwelcome to say the least.
“It’s set to be another ‘Awful April’ for households facing a barrage of bill increases with council tax, water bills and phone and broadband prices all set to shoot up. Those increases will take a good bite out of the rises in benefits payments, the state pension and the national living wage especially, with inflation simmering at 3% and set to heat up further.
“There is a small silver lining in that the spring should bring warmer weather and longer daylight hours, meaning less reliance on heating and indoor lighting. But there are many households struggling to pay off debts run up since energy prices shot skywards and many more will be wondering if costs will ever return to more ‘normal’ levels.
“Millions of households have already switched to fixed tariffs and won’t be impacted by April’s change, and there are still deals available to those wondering if switching could be right for them, but it’s important if you are locking in for a year or longer to consider how that deal would stack up if the price cap subsequently falls.
“A cash-strapped consumer isn’t great for the economy as a whole, with the dominant service sector relying on spend to grease the wheels. And though the average worker will have been feeling a bit better off as wages overshot inflation, they’re weary and worried and more likely to save than spend as they wait to find out how those Budget tax increases on employers will filter through to the workforce.”
