LBC Views: A robust plan to tackle spiralling energy prices must be put in place by Government

This has not come of the blue and is therefore not a surprise, as the increase was also on the cards. We also know that further increases will be seen at the start of next year. However, what is a surprise is Government's catastrophic failure to get a handle on the situation with a robust plan to tackle spiraling energy prices and protect UK consumers from fuel poverty.

Surely an 80% increase in the energy price cap should have been met with a wave of additional support for households in need of financial help. Unfortunately, this is not the case as Government has been caught sleeping with all focus being on the election for the next Prime Minister rather than the welfare and needs of UK consumers.

Listeners of the LBC Consumer Hour have been asking me questions all morning about the price hike.

Here’s answers to the questions you’ve been asking:

How much is the increase?

The price cap on standard and default tariffs has increased from £1,971 per annum for a typical user paying by direct debit to £3,549 per year.

Ofgem has also announced a £1,591/year increase to the cap for more than four million households on prepay tariffs – to £3,608/year for a typical household.

How much will my bill go up by?

Firstly, it is important to highlight that the so called ‘price cap’ is not actually a cap on yrou bill, it’s a cap on the standing charges and unit rates. Your bill may therefore be more or less than the cap amount. Typically, the latest rise in the price cap will cause a £1,578 per annum increase in energy bills.

Should I switch supplier?

The answer at the moment is no, as there still no cheap deals available for switchers meaning the reality is switching will not reduce your bill.

I can’t pay my bill, what can I do?

The first thing to do is speak to your supplier and explain your financial situation. Ofgem has directed all suppliers to offer assistance where possible, typically an affordable debt repayment plan, payment break, payment reduction of more time to pay.

If you are on a pre-payment meter you could ask your supplier for emergency credit, most suppliers will give you at least £5 credit for your meter. If you are vulnerable (in terms of your age or medical condition) you can speak to your supplier about obtaining additional support credit.

Many of the energy suppliers also have hardship funds which can be accessed by those struggling the most financially.

The important thing to remember is don’t struggle in silence as there is support available.