Energy Price Cap to Fall by 7% – But Bills Still Higher Than a Year Ago

While Ofgem announced a welcome 7% drop in the energy price cap starting July 1st, many households will still feel the squeeze financially

Today, Ofgem announced that the energy price cap will fall by 7% from 1 July, reducing average annual bills for typical households on standard tariffs from £1,849 to £1,720. The cap sets the maximum rate suppliers can charge for each unit of energy for customers on default tariffs in England, Scotland and Wales.

While the reduction is welcome, it only reverses April’s rise and still leaves most households paying around 10% more than they were this time last year. For many, the financial pressure of high energy bills hasn’t eased - it’s simply less visible during the warmer months.

Any fall in energy prices is welcome - but let’s not overstate it. This just takes us back to where things were at the start of the year. Bills are still significantly higher than pre-crisis levels, and while people might not feel the pinch as much when the heating’s off, many are still juggling arrears or relying on credit to cover basic costs. The heating might be off, but the pressure on household budgets is still very much on.

"Any fall in energy prices is welcome - but let’s not overstate it. This just takes us back to where things were at the start of the year. Bills are still significantly higher than pre-crisis levels, and while people might not feel the pinch as much when the heating’s off, many are still juggling arrears or relying on credit to cover basic costs. The heating might be off, but the pressure on household budgets is still very much on."