Government responds to calls for energy bills reduction this winter

The Government has responded to calls for slashing energy bills this winter. The average household now pays £1,717 annually for a direct debit dual fuel account in line with the Ofgem price cap.

From the beginning of October, the price cap jumped up 10 percent, increasing from the previous £1,568 a year. With heating costs set to rise through the chillier season ahead, Labour MP Mary Kelly Foy challenged Energy Secretary Ed Miliband to "meet with Ofgem to discuss the potential merits of reducing the energy price cap for winter 2024-25".

In response, energy minister Miatta Fahnbulleh spelled out what is being done to keep bills down. She said: "The Government is committed to ensuring vulnerable households are supported with their .

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"We are looking at all options on how to make energy bills more affordable for these households. In the short-term, we are continuing to deliver the Warm Home Discount which provides a £150 annual rebate on energy bills for eligible low-income households."

She also pointed out the Government is working with suppliers to extend extra help: "We are also working with energy suppliers to ensure they are providing additional support to vulnerable customers that are struggling with bills." The Warm Home Discount provides a set £150 chunk off your electricity bill, directly paid to your supplier who then takes it off your bill.

Pension Credit recipients may qualify for the discount, if they have a low income and high energy costs, provided their supplier participates in the scheme. Pension Credit claimants are also eligible for the Winter Fuel Payment—a £200 or £300 boon for those on certain means-tested benefits like , Child Tax Credit, and Working Tax Credit.

In discussing the specifics of the energy price cap, Ms Fahnbulleh clarified: "The energy price cap is set by Ofgem and there are different costs included in the price cap, such as the wholesale cost of energy. Any changes to these costs will affect how much the price cap will be each time it is reviewed, and the main driver of the price cap increase for the period 1 October to 31 December 2024 was an increase in wholesale energy prices."

However, she also said that in light of the current unpredictability of the energy market, it's vital there is a focus on energy security at home. She emphasised: "The Government believes the only way to protect consumers permanently is to speed up the transition towards homegrown clean energy and reduce our reliance on volatile international fossil fuel markets."