The £442 bill increase coming for 20 million Brits – and how you can avoid it (Image: DAILY EXPRESS)
It’s happening again, and it’s getting more serious. Around 20 million households have exactly one week to protect themselves from yet another increase in energy bills. If you’re still on a Standard Variable Rate (SVR) tariff, your bills will rise by 4% in line with the new energy price cap on October 1.
This will see average annual bills for a typical dual-fuel household reach £1,723 – an extra £60 per year – thanks to ongoing trouble in the Middle East driving up wholesale gas prices.
Price rises are set to get even more dramatic in January, when Ofgem announces its next price cap (it does this every three months). Current forecasts expect the energy regulator to hike prices by a staggering 25%, adding up to £442 to bills, with average annual costs hitting £2,165. This will take bills back to levels last seen during the 2022-2023 energy crisis.
Around 20 million households have exactly one week to protect themselves (Image: Getty)
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New Prime Minister Andy Burnham announced one headline-grabbing measure last month – the removal of VAT from electricity bills in October. But while all and any support is welcome, that change amounts to an average saving of £45 per year, or £3.75 per month. That barely puts a dent in January’s projected increase – you could probably find that down the back of the sofa.
Pressure is undeniably mounting on Burnham to do more to shield households from what’s to come in this year’s Autumn Budget. Until then, if you’re one of the millions still on an SRV tariff, take matters into your own hands and see if you can snap up a cheaper fixed rate. Unlike an SRV, where gas and electricity unit rates and standing charges can change when the price cap is reviewed, a fixed tariff locks in your rates for an agreed period. Your total bill can still rise or fall depending on how much energy you use, but the price you pay per unit won’t suddenly change in line with the next caps.
There are still deals on the market that beat October’s price cap – comparison site Uswitch says there are four at the time of writing. The cheapest, offered by Fuse Energy, is priced £22 below October’s rates and a whopping £451 below January’s.
Forecasts can change, and fixed deals can come with small exit fees, which is something to be mindful of when choosing. But at the moment, doing nothing seems to be the most expensive option. Use sites like Uswitch or MoneySupermarket to compare deals.
DEAL OF THE WEEK
Buy one main at Bella Italia and get the second one for £1 until October 2. The offer can be redeemed for a table for up to 10 guests from Sunday to Friday. Just sign up for your unique code via the website and show it to your server when you ask for the bill.
Save hundreds of pounds on vital document in October
Over 55s can have their wills written for free in October (Image: Getty)
October isn’t all bad in the billing sphere, as it also offers Brits the chance to save hundreds of pounds and have their wills written for free. As morbid a topic as it may be, its importance can’t be stressed more. Dying without a valid will means you will die “intestate”, meaning you won’t have a say in who your estate goes to.
The state will decide instead, which could lead to unnecessary delays, family fallings-out, or potential tax bills that could otherwise have been avoided. Many put off the process due to price – some writings can be quite costly. And it makes sense – who would be champing at the bit to go out of their way to pay money to think about their own inevitable demise for an hour or so? But there’s no excuse for that next month, as every October (and March) is “Free Wills Month”. During these months, charities such as Macmillan Cancer Support and The Salvation Army offer the over-55s the opportunity to have simple wills written or updated for free in certain locations across the UK.
Visit freewillsmonth.org.uk and enter your postcode, or call 0333 022 0396. While you’re under no obligation to leave a gift to charity, many do as a way of giving back. Only a limited number of appointments are offered per campaign on a first-come, first-served basis, so act fast if you’re interested.