The ongoing UK energy bills increase has placed a strain on family budgets, particularly for lower-income households who spend a larger proportion of their household income on energy costs.
The price of energy has skyrocketed in recent years due to a number of factors, including low storage capacity and the reduced gas supply from Russia.
The government introduced the Energy Price Guarantee (EPG) in October 2022 to help protect household bills. It caps the amount suppliers can charge for units of gas and electricity, as well as daily standing charges.
The Energy Price Guarantee is an important step in supporting us all with our energy bills and will help protect the economy. It will also help to reduce fuel poverty.
However, over the last year, the energy sector has experienced considerable volatility – supplies have run low, prices have rocketed and companies have gone bankrupt.
There will be another increase in energy prices from April 2023, though not as steeply as anticipated 🙂
Hopefully, bills should start to decrease again by July, though experts predict prices won’t return to pre-pandemic levels.
Energy Bills Increase April 2023 – Will Your Energy Bills Go Up in April 2023?
UK households will see their energy bills increase again in April 2023 – though not by as much as anticipated by experts.
The government’s Energy Price Guarantee (EPG) will remain at £2,500 annually for a typical household on a dual tariff. However, keep in mind that this figure only applies to an ‘average’ household with dual tariff service; larger households may pay more than this amount for their energy bills.
Although the EPG remains at its current level, households will see their energy bills go up an average of 19% in April. This is due to changes made by the government to the £400 Energy Bills Support Scheme (EBSS), so it only benefits vulnerable and low-income groups rather than all households in the UK.
In the UK, energy remains, on average, at 34p per kilowatt-hour (kWh), for electricity, and 10.3p per kWh for gas.
There is currently no price cap on non-domestic energy, meaning businesses will face yet another surge in their energy bills. Thankfully, the government has recently unveiled plans to assist businesses during this trying time.
Energy Bills Increase April 2023 – Why Are Energy Bills Rising?
Are you confused about why prices are going up again so quickly? You’re not alone; during this energy crisis, there has been a plethora of changes made at the government level that may have left everyone puzzled.
Liz Truss, former Prime Minister, had originally announced the Energy Price Guarantee and promised it would remain in place for two years until 2024. However, with a change of Prime Ministers, new Chancellor Jeremy Hunt announced that the Energy Price Guarantee would only last six months, ending March 2023.
In his Autumn Statement 2022, the Chancellor declared that the EPG would remain in effect until April 2024. However, there’s a catch: in April 2023 its value will increase by 20% to a cap of £3,000 per household’s annual consumption.
After yet another change of plans, the Chancellor has announced that the EPG will remain at £2,500 for an additional three months until June 2023.
Energy Bills Increase April 2023 – Why will many of us still see bills go up in April?
For most UK households, the Energy Bill Support Scheme (EBS), which paid all UK households £400 – £66/ £67 per month, between October 2022 and 31 March 2023, will be ending.
As a result, average energy bills will go from £2,100 annually to around £2,500 per year in April – an increase of 19%.
Energy Bills Increase April 2023 – Why is the Energy Bills Support Scheme Ending?
Technically, the Energy Bills Support Scheme won’t end – it just won’t be available to everyone. Instead, the government has announced that it will provide financial assistance to vulnerable and low-income households all through 2023.
Unfortunately, there is currently no update on whether the Energy Bills Support Scheme will be extended to all consumers again next winter.
Energy Bills Increase April 2023 – Can You Get Help with Your Energy Bills?
Instead of covering everyone’s energy bills, the government has announced a “new, more targeted approach that costs taxpayers less”.
Under these new plans, vulnerable and low-income groups will receive payments to cover energy expenses beginning April 2023:
- Low-income households – Households on means-tested benefits will receive £900 in total, paid out in three instalments over three years: spring 2023, autumn 2023 and spring 2024.
- Pensioner households – Pensioners will receive £300 in winter 2023.
- Disabled households – People on certain disability benefits will receive £150 starting in summer 2023.
In 2023/ 2024, over 8 million households in the UK on means-tested benefits will be eligible for the £900 cost of living payment. But to receive it, you must be receiving one of these other benefits:
- Universal Credit
- Child Tax Credit
- Working Tax Credit
- Pension Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
For further details about these payments, you want to see the government website.
Also, for help with your energy bills, if you’re having trouble paying, there are lots of programs and services available to assist. To determine if you qualify for any of them, it’s best to contact your energy provider directly. Many offer financial assistance in the form of low monthly bills, rebates or free installation of solar panels to name a few.
Ofgem also highlights the help available to you if you can’t afford your energy bills.
Energy Bills Increase April 2023 – When Will Energy Bills Start Coming Down Again?
Though no date can be guaranteed when energy bills will start to come down again, we may start seeing slightly cheaper prices by July 2023.
What will happen to your energy bills in April 2023: Video
Energy Bills Increase April 2023 – How is the government supporting household energy bills?
As you know, since October 2022, we have had part of our energy bills paid for through the Energy Price Guarantee (EPG). This set a cap on how much suppliers can charge per unit of gas and electricity based on an individual household’s average usage.
Every household with an electricity meter received a £400 reduction on their bill; alternative fuels such as oil or LPG received an additional £200 discount.
In addition to aiding households, the government is investing £18m into an ‘It All Adds Up’ campaign that encourages us to save energy by making small changes around our homes. This could include signing up for various energy apps, installing a free smart meter, and draughts-proofing doors, windows and your entire home in general.
Energy Bills Increase April 2023 – Will these savings make up for the increase in our energy bills?
That is a question that still eludes the experts. They believe global energy prices remain too high and it could take years before they begin to decline again.
Energy Bills Increase April 2023 – How can I reduce my energy bills?
There has been much speculation regarding how household energy bills would be affected when the Government’s cap on prices expires in April. Unfortunately, it appears that most households will have to bear the brunt of cost-of-living increases 🙁
When it comes to cutting your energy bills, it can be overwhelming not knowing where to begin – especially since the onus is mostly on energy suppliers right now. But never fear, I’m here to help you Save Money on Your UK Utility Bills Forever – Guaranteed!
And here are some helpful tips on how to start…
The first and easiest way to reduce your energy bills is to save money on your energy bills by taking advantage of dual fuel tariffs or/ and switching to a cheaper one. Plus, there are year-round discounts available if you qualify.
Heating and cooling accounts for more than half of a household’s energy use, so it makes sense to take steps to make your house more energy efficient. Weatherstrip or caulk around windows, doors, and other gaps.
Control Your Temperature With Your Thermostat
Raising your thermostat a few degrees before leaving for work in the summer can save up to 10% on cooling costs. In winter, lowering it by just 1 degree for 8 hours can also result in savings of around 3%.
As springtime can still be chilly, you can control your room temperature and save more on your energy bills by layering and soft-furnishings.
Switch to LED Lighting
Replace old incandescent light bulbs with energy-saving alternatives like compact fluorescent lamps (CFLs) or light-emitting diodes (LEDs). These use 75-85% less energy and last 25 times longer than traditional bulbs.
Wash Your Clothes With Water at 20 Degrees Celsius
Laundry can be a big water user, but making this simple change can help you save on your electricity bill. Instead of running the machine with hot water, switch to warm water at 20 degrees. And wash full loads for more value for your money.
Optimising Your heater/ boiler
Your combi boiler’s temperature can be reduced to 60 degrees, which could help you save up to £100 per year
The temperature of the water your boiler sends to radiators is called flow temperature. While it won’t affect the temperature of your home, reducing flow temperature may reduce the time it takes to reach your target temperature.
You may need to increase the flow temperature to over 65 Degrees Celsius if you are older or have any pre-existing medical conditions.
Fans instead of air conditioners
Fans use just 1/60th the energy of an air conditioner and circulate the air, so they’re an efficient way to reduce cooling needs.
During the hot summer months, for instance, fans can wick away body heat without the need for air-conditioners. Fans will keep you cool by a few degrees without feeling uncomfortable in the heat.
Install solar panels
Consider installing some sustainable technology, like solar panels. While a new system could cost between £4,000 and £7,000, it will typically reduce your electricity bill by up to 50%.
Insulation
Even if you don’t have much money to spare, there are still ways to reduce your energy usage. One effective method is to insulate your windows by caulking any cracks around the frame and installing thick curtains or blinds for extra insulation.
Furthermore, giving your radiators some breathing room can go a long way towards improving efficiency levels as well.
Energy Bills Increase April 2023 – Why have energy bills gone up?
The UK’s average energy bill has gone up due to rising wholesale gas costs for energy suppliers. From 2021 through 2022, the wholesale cost of gas increased by 404%.
This spike in prices is caused by several factors, including low energy storage capacity in Britain and elsewhere, an absence of Liquefied Natural Gas (LNG) to back up energy supplies, and Russia’s invasion of Ukraine which has reduced gas supplies throughout Europe.
In Conclusion
High prices for gas and electricity are putting unprecedented pressure on household finances in the UK.
The key points to note about the energy bills increase from April 2023 include:
- Energy bills will rise by 19% in April 2023.
- After 31 March 2023, the average dual-fuel household will pay an annual bill of £2,500.
- Energy prices should begin to decrease somewhat from July 2023.
The prospect of energy prices rising again can be frightening for many people. Not only will this situation impact homeowners around the UK, but businesses too – potentially having a ripple effect on other sectors of our economy as well.
There is help available if you’re struggling to pay your energy and other utility bills.
