# Factbox-How far are UK energy bills set to rise and what help are consumers getting?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-26
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Rising energy price cap: Impact on UK households
Meta Description: Ofgem raises domestic energy price cap to £3,549 due to high wholesale costs, impacting household budgets. Learn about future price cap levels and government
URL: https://financedigest.com/factbox-how-far-are-uk-energy-bills-set-to-rise-and-what-help-are-consumers-gettinghtml

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LONDON (Reuters) – Britain’s energy regulator Ofgem said on Friday the cap on domestic energy prices would rise to 3,549 pounds ($4,188.17) a year from the start of October due to soaring wholesale costs, increasing pressure on already-stretched household budgets.

PREVIOUS AND FORECAST PRICE CAP LEVELS

The price cap has more than tripled in the last two years. Below are the [price cap](https://www.financedigest.com/oil-prices-rise-after-opec-keeps-output-steady-russian-price-cap-imposed.html "Oil prices rise after OPEC+ keeps output steady, Russian price cap imposed") levels since October 2020. From October 2022 the cap will be reviewed quarterly rather than every six months:

Oct. 2020 – [March 2021 – 1,042 pounds per year](https://www.financedigest.com/glastons-interim-report-1-january-31-march-2018-orders-received-grew-23-comparable-operating-profit-at-previous-years-level.html "Glaston’s Interim Report 1 January – 31 March 2018: Orders received grew 23%, comparable operating profit at previous year’s level")

April 2021 – Sept. 2021 – 1,138 pounds per year

Oct. 2021 – March 2022 – 1,277 per year

April 2022 – Sept. 2022 – 1,971 per year

Oct. 2022 – Dec. 2022 – 3,549 per year

Forecast [price cap](https://www.financedigest.com/eu-meets-to-try-to-break-gas-price-cap-impasse.html "EU meets to try to break gas price cap impasse") levels from analysts Cornwall Insights:

Q1 2023 – 5,386.71 per year

Q2 2023 – 6,616.37 per year

Q3 2023 – 5,897.12 per year

Q4 2023 – 5,887.31 per year

[GOVERNMENT SUPPORT](https://www.financedigest.com/where-do-small-businesses-turn-when-government-support-dries-up.html "Where do small businesses turn when government support dries up?") ALREADY ANNOUNCED:

Prime Minister Boris Johnson and the two candidates vying to replace him — Foreign Secretary Liz Truss and former finance minister [Rishi Sunak](https://www.financedigest.com/british-pm-rishi-sunak-pledges-further-action-on-strikes-to-protect-lives.html "British PM Rishi Sunak pledges further action on strikes to ‘protect lives’") — have come under pressure to set out further support for households.

[Finance minister](https://www.financedigest.com/uks-finance-minister-sets-out-new-economic-approach-to-finance-bosses.html "UK’s finance minister sets out new economic approach to finance bosses") Nadhim Zahawi said on Friday he was “working flat out to develop options for further support.

In May, when Sunak was finance minister, the government set out a 15-billion-pound ($17.7 billion) support package to help households, [funded in part by a windfall tax](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") on oil and gas companies.

This included:

– [Energy bills](https://www.financedigest.com/energy-bill-support-pushes-uk-budget-deficit-to-february-record.html "Energy bill support pushes UK budget deficit to February record") discount

Every [household will receive a 400-pound-credit to their energy bills](https://www.financedigest.com/44-of-uk-households-are-worried-theyll-have-to-foot-the-bill-for-net-zero.html "44% of UK Households are Worried They’ll Have to Foot the Bill for Net Zero") from October. This replaced a previously [planned 200-pound rebate on energy bills](https://www.financedigest.com/eus-planned-reforms-aim-to-better-protect-power-bills-from-market-swings.html "EU’s planned reforms aim to better protect power bills from market swings") which had to be repaid over the next five years. The new rebate will not need to be repaid.

– Low-income households

More than 8 [million low-income households in receipt of state](https://www.financedigest.com/wizz-air-loses-fight-against-67-million-in-state-aid-for-romanian-rival.html "Wizz Air loses fight against million in state aid for Romanian rival") benefits are also being given a further one-off payment of 650 pounds, paid straight into their bank accounts in two instalments. The first payment, of 326 pounds, was made in July and the second will follow in the autumn.

– Pensioners

More than 8 [million pensioner households](https://www.financedigest.com/revealed-1-45-million-tonnes-of-e-waste-is-produced-by-households-businesses-per-annum.html "Revealed: 1.45 million tonnes of e-waste is produced by households & businesses per annum"), who already receive a winter fuel payment, will also receive an extra one-off payment of 300 pounds.

– Disabled people

Some 6 million people who receive disability benefits will receive an extra one-off payment from September of 150 pounds, to help with [rising costs](https://www.financedigest.com/suedzucker-quarterly-profits-surge-73-5-despite-cost-rise.html "Suedzucker quarterly profits surge 73.5% despite cost rise") of things such as energy-intensive medical equipment.

– [Household support fund](https://www.financedigest.com/funds-from-electricity-levy-could-help-german-households-says-renewables-association.html "Funds from electricity levy could help German households, says renewables association")

This fund, which [provides money for local authorities to distribute to support](https://www.financedigest.com/keysource-to-provide-critical-facilitiesmanagement-support-for-leeds-city-council.html "KEYSOURCE TO PROVIDE CRITICAL FACILITIESMANAGEMENT SUPPORT FOR LEEDS CITY COUNCIL") vulnerable households, will be increased by 500 million pounds to extend it to March 2023 from October.

WHAT THE CANDIDATES FOR PM HAVE SAID THEY WILL DO:

The result of the leadership contest is [due on Sept](https://www.financedigest.com/air-france-cancels-55-of-short-medium-haul-flights-sept-16-due-to-strike.html "Air France cancels 55% of short, medium-haul flights Sept. 16 due to strike"). 5.

Sunak has promised to cut value-added [tax on energy](https://www.financedigest.com/britains-tax-take-risks-blowing-green-energy-off-target.html "Britain’s tax take risks blowing green energy off target") bills and has said he is in no doubt more direct support will be needed to help households through the winter and he would act as soon as it is confirmed how much bills would be increasing by.

Leadership frontrunner Truss has said she does not believe handouts are the best way to help households through the cost-of-living squeeze, and she prefers to [focus on tax cuts](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis").

Truss has said she would [apply a temporary moratorium on environmental and social levies added to consumers’](https://www.financedigest.com/50-of-consumers-wont-spend-more-than-20-minutes-applying-for-financial-products-online.html "50% of consumers won’t spend more than 20 minutes applying for financial products online") electricity bills.

WHAT OTHER [COUNTRIES IN EUROPE](https://www.financedigest.com/best-countries-in-europe-to-live-in.html "Best countries in Europe to live in") ARE DOING:

Governments across [Europe have set](https://www.financedigest.com/investment-in-mental-health-amongst-cybersecurity-professionals-set-to-increase-according-to-infosecurity-europe-poll.html "Investment in mental health amongst cybersecurity professionals set to increase according to Infosecurity Europe poll") out a variety of measures to help consumers struggling with a sharp rise in power bills.

Countries including Germany and Poland have agreed one-off payments to households, while others such as Norway and Greece are subsidising [energy bills](https://www.financedigest.com/explainer-why-europe-faces-climbing-energy-bills.html "Explainer-Why Europe faces climbing energy bills"). France has committed to capping the increase in regulated electricity costs, while the Netherlands has [cut energy](https://www.financedigest.com/france-strains-to-avert-power-cuts-as-cold-snap-tests-europes-energy-resolve.html "France strains to avert power cuts as cold snap tests Europe’s energy resolve") taxes for households.

($1 = 0.8474 pounds)

(Compiled by Kylie MacLellan; editing by Mark Heinrich and Jason Neely)


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