Energy price cap won’t go up in April, despite Middle East crisis

The UK’s domestic energy price cap won’t go up in April, despite an increase in global oil prices, chancellor Rachel Reeves has confirmed.

Last month, energy regulator Ofgem announced that in April, the energy price cap will fall by 7%. 

That means the cap will drop by £117 to £1,641 a year for a typical dual fuel household - around £10 a month back in your pocket if you use gas and electricity.

But the US-Israel war with Iran has caused global oil prices to surge.

And that’s led to households across the UK worrying about what it means for their bills.

Chancellor Rachel Reeves has now stated in parliament that the energy price cap will remain unchanged.

This, she said, will give families “immediate certainty on their bills until at least the end of June”.

What is the energy price cap?

The energy price cap limits how much suppliers can charge per unit of gas and electricity. 

But it doesn’t cap your total bill - the amount you pay depends on how much energy you use.

The price cap applies to households on standard variable tariffs, which are the default tariffs for customers who haven’t switched to a fixed-rate deal. 

What about heating oil?

If your home uses heating oil, the picture is less straightforward.

Unlike gas and electricity, there’s no price cap on heating oil, and prices have surged since the recent conflict in the Middle East began.

Meanwhile, supply issues are being compounded by panic buying.

Speaking in parliament, Rachel Reeves acknowledged that households who use heating oil face “unique challenges”.

But she confirmed the financial secretary to the Treasury will lead talks this week with officials and MPs to look at what action can be taken.

About 60% of households in Northern Ireland rely on oil for heating, along with about 3% of homes in England and Wales.

What can I do if I'm worried about my bills?

If you’re feeling anxious about keeping up with payments, don’t ignore it.

The earlier you act, the more options you usually have.

Contact your supplier

If you’re struggling to keep up with your energy bills, contact your supplier. 

They might be able to offer:

• grants
• payment plans
• advice on managing your account

It could also be worth joining the Priority Services Register for extra support.

Manage your household budget

Gas and electricity are just some of the costs that come with running a household.

So it’s well worth creating a budget, so you can see how much money you have coming in each month and prioritise your spending.

You can then be confident that you’re able to cover these vital expenses, as well as work out what you can afford to spend on non-essentials and put into savings.

Get started with our budget planner - it’s free and easy to use.

Try to save energy

Small steps such as turning down your thermostat by one degree, not overfilling the kettle and bleeding your radiators could help you cut your energy usage - and in turn, bring your bills down.

We’ve put together a list of 50 smart energy-saving tips to help you get started.

Find out what benefits you could claim

You might be able to claim financial support from the government to help you with your living costs.

Use our benefits calculator to see what you could be eligible to receive.