The UK's energy regulator, Ofgem, has announced a significant reduction in the energy price cap, setting it at £1,568 for a typical annual dual-fuel bill for the period from July to September. This represents a decrease of £122, or roughly 7%, from the previous quarter.
However, this relief for millions of households is starkly overshadowed by the simultaneous cessation of a vital government support scheme. The £28-a-month Energy Bills Support Scheme Alternative Funding, a lifeline for an estimated 600,000 vulnerable individuals without a direct electricity connection, officially closed to new applications on Wednesday.
A Crisis for the Most Vulnerable
This move has sparked outrage among campaigners and charities. Simon Francis, coordinator of the End Fuel Poverty Coalition, condemned the timing, stating it creates a 'cliff edge' for those most in need. He emphasised that for many, the combination of high energy debts, the inability to afford standing charges, and the withdrawal of support will negate any benefit from the lower price cap.
The funding was crucial for those living in park homes, on narrowboats, or in buildings with a communal electricity supply. The End Fuel Poverty Coalition estimates that nearly three million UK households remain in fuel poverty, a number they warn could surge without targeted government intervention.
Government Defends Position
A government spokesperson defended the decision, highlighting the wider context of nearly £40 billion in energy bill support provided over the winter of 2022-23. They stated, 'We continue to support vulnerable households with cost of living support worth £108 billion,' pointing to measures like the Warm Home Discount and Winter Fuel Payments.
Despite this, the Welsh Government has expressed 'extreme disappointment' with Westminster's choice to end the scheme, calling for its immediate reinstatement to protect struggling families.
What This Means for Your Bills
While the new, lower price cap is welcome news for many, experts urge caution. The cap does not represent a maximum bill; total cost is entirely dependent on actual energy consumption. Furthermore, standing charges—a fixed daily fee—remain at a near-record high of just over 60p a day for electricity and 31p for gas.
Jonathan Brearley, Ofgem's chief executive, acknowledged the continued pressure on household budgets, noting, 'There are still big issues that we must tackle head-on to ensure we build a system that’s more resilient for the long term and fairer to customers.'
