Energy costs increase and government response

On Thursday, Ofgem announced the energy Default Tariff Cap is increasing from 1st April 2022, with the next change due from 30th September 2022. The cap limits standing charges and the price charged per unit used.

The new cap means a household with average consumption paying by Direct Debit would see an annual increase from £1,277 to £1,971 (a £693 increase). A household with average consumption using prepayment meters will see an annual increase from £1,309 to £2,017 (a £708 increase).

The government announced a series of measures to mitigate this:

  • All energy customers will receive a £200 credit, which will be repaid by a £40 increase in bills for the next five years
  • Local authorities will be funded to provide a £150 discount off council tax for those in bands A to D, plus a £144 million fund to provide support to those outside this group
  • The annual Warm Home Discount is to increase from £140 to £150, and the criteria expanded


If you are worried about the rising cost in your energy bills and want help looking at your budget please contact our money advice team on 01993 823898 ext 2825 or email them on [email protected]

to obtain advice on how to reduce your outgoings and manage your finances and also to check if you are eligible for any other fuel poverty assistance.