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- New energy price cap set at £2,074 from July
- What should you do now?
- Jeremy Hunt is not ruling out further energy support
- Bill payers warned they won't save money this winter
- Interest rate forecasts have risen sharply in recent days|Ed Conway explains why and what it means
- Who benefits from rising food prices?
- Your Dilemma:I pay my father's mortgage, how do I become an official member?
- Budget mother:save for your kids|Will a Food Subscription Save Money?|holiday pay|Best Broadband Deals
- Jess Sharp and Katie Williams are reporting live
What is the impact of the new energy price cap on electric vehicle owners?
As we reported, the reduction in energy price caps was announced today and will take effect on July 1.
This means that the bill of the average household in England, Wales and Scotland is reduced by £426.
So what does this mean for EV owners, who are arguably consuming more electricity?
So a £1,206 reduction from £3,280 to £2,074 is good news for EV drivers as it means anyone can pay to fully charge a typical family car at home by paying standard domestic energy rates of less than £20.
Those who benefit from EV-specific tariffs with cheap off-peak electricity rates continue to enjoy a better price.
However, RAC spokesman Rod Dennis said the cost was much higher for those who went beyond the range of their vehicles and relied on fast and ultra-fast chargers.
These charging points are charged with 20% VAT - 15% higher than the VAT applicable to household electricity.
It is important to remember that energy price caps do not set a maximum amount that households will pay for energy, but limit how much a supplier can charge them per unit of gas or electricity, so people who use more energy will pay more.
Octopus Energy will resume the Saving Sessions program this winter
Customers of Octopus Energy's smart meter will save money this winter by reducing electricity consumption again.
The company plans to revive its Saving Sessions program, which requires households to switch from incandescent to candles in the winter of 2022-2023 to save on energy bills.
The program rewards customers for every unit of energy saved during peak periods.
Octopus said the program diverted 1.86 GWh (gigawatt hours) of energy demand over 13 sessions - the equivalent of stopping 2 million washing machines.
Nearly 700,000 smart meter customers took part, with £5.3 million paid out to participants over the course of the scheme.
It said more than £170,000 of this proceeds had been donated by customers to Octopus' Hardship Fund for Needy Families.
The news comes after regulator Ofgem announced it would lower energy price caps on household bills from July.
Octopus founder Greg Jackson said the move ensured falling global energy costs would be passed on to consumers.
"However, costs are still double what they were before the crisis," he added.
"We will do everything we can to help our customers through this crisis and hope that the government will continue to help those most in need as well."
Edinburgh Airport staff oppose payline strike, warned of 'travel chaos' in summer
Passengers could face "travel chaos" all summer after staff at Edinburgh Airport voted to strike over a pay dispute, unions have warned.
About 275 workers were elected in the joint vote, including members working in security, terminal operations and search.
It said 85 percent supported union action, with a turnout of 75 percent, and is now calling on airport bosses to propose improvements to avoid "travel chaos" in the summer.
Read more from ourScottish journalist Jenness Mitchellhere...
Soft drink factory workers strike for wages
Hundreds of workers at a soda factory have gone on strike over a wage dispute.
Combined members of the Coca-Cola Europe Pacific Partnership (CCEP) site in Wakefield will stage a series of strikes starting June 8.
Workers overwhelmingly voted in favor of the strike, over a wage proposal the union said was worth an average of 6 percent.
There will be 14 days of strike action, including three 48-hour strikes and two 96-hour strikes, separated by two weeks.
“Coca Cola Europacific Partners makes billions of dollars in profits, but it lowers the wages of the workers who make the profits,” said Unite secretary general Sharon Graham.
How new energy price caps will affect our bills
The tightening in energy prices will ease from July, when we expect to see a difference in how much we pay to keep homes running,Business reporter Paul Kelsoto explain.
Wholesale energy prices started to rise in late 2021, exacerbated by the Russian invasion of Ukraine last February.
High energy costs have made fuel starvation a "mainstream experience" and "pushed millions of households on tight budgets," despite the government mitigating the impact over the winter with its energy support scheme, Kelso said.
But what happens in July?
The cost for suppliers to buy energy has fallen to its lowest level since 2021, Kelso explains, but customers won't feel the drop until the summer as companies buy supplies in advance.
While prices have stabilized, bills are still more than double what they were two years ago, he added.
See Kelso's full explanation of what today's energy price cap announcement means for our bills here...
Heathrow security personnel organize new strike
Security staff at Heathrow Airport went on a three-day strike today over a pay dispute.
Unite members staged union actions for 15 days, including during the busy Easter period.
Heathrow said it had contingency plans to keep the airport open and operating normally, adding that passengers could look forward to a "smooth" mid-term break.
John Holland-Kaye, CEO of Heathrow Airport, said: "Passengers need not worry about Unite strike action during the mid-term holidays."
"These strikes are not necessary at all. When I talk to colleagues, the overwhelming message is that they just want to vote on our compensation proposal, and Unite won't let them do that."
Unite said security staff at Heathrow were paid less than at other major airports in London and the South East.
Fuel prices are falling this month - this is how much you'll be spending at the pump
Fuel prices fell again last week after falling below 145 pence for the first time in 18 months.
According to RAC Fuel Watch, the average price of a liter of unleaded petrol is now 143.35 pence, down from 146.89 pence last month.
This means a typical 55-litre family car now costs £78.84 to fill up.
Diesel prices were 154.31 pence per litre, down from 161.06 pence in April, meaning a similarly sized car would cost £84.87 to fill up.
As prices fall, RAC spokesman Rod Dennis said petrol costs are "likely to bottom out in the coming weeks".
With Saudi Arabia and other OPEC+ producers planning to cut oil production to about 1.16 million barrels per day, Dennis said we could see a "slight increase" in gasoline prices.
For diesel, despite lower wholesale prices than unleaded petrol, national diesel prices were still "significantly overvalued," he said.
Wholesale prices for the two fuels have remained virtually the same in recent months, but petrol prices have risen to at least 5 pence per litre.
Smaller lenders are canceling mortgage agreements because of rate problems
Borrowing costs in the UK have soared in the past 48 hours, forcing smaller UK mortgage lenders to temporarily withdraw deals and re-price new customers.
UK government bonds rose sharply yesterday and today (to their highest level since last year's disastrous mini budget) after inflation data showed that price rises were not slowing down as quickly as hoped, leading to predictions that interest rates will have to rise again.
Central banks raise interest rates, causing people to spend less and save more, which keeps inflation in check.
As Ed Conway explained in our 6:43 am post, bank rates could peak at 5.5% this year – last week's forecast was 4.75%.
Now Reuters reports that at least seven smaller banks have withdrawn products or announced price adjustments this week.
These lenders are primarily focused on the buy-to-let market – and none of them are big big banks.
Car production rises for the third month in a row
New data showed that car production increased for a third straight month as supply shortages continued to ease.
A total of 66,527 vehicles were produced in April, nearly 6,000 more than a year earlier, according to the Society of Motor Manufacturers and Traders (SMMT).
Exports drove production up 14.7 percent to 54,820 vehicles, with more than four-fifths of the cars produced in the country being exported abroad.
The EU remains the most important global market, accounting for 58% of all exports, followed by the US, China and Australia.
Hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV) account for more than a third of total production.
Savings offers of the week
Geldfeitenvergelijken.nlExpert Rachel Springall reveals her savings deal of the week.
Chip - Instant access powered by ClearBank
“This week, Chip strengthened its position in the market by raising the rate on its Instant Access powered by ClearBank products to 3.75%. Savers looking for a competitive rate on a flexible savings account can find it. deal is attractive because it allows for unlimited withdrawals. Depositors should know that they must have a Chip plan (both free and paid options are available).
Minimum amount to open an account: £1
Investec Bank plc – 1 year fixed interest savings plan
"This deal, which now pays 5.00%, strengthens its position in the industry against its peers and could be an attractive option for savers looking to lock up money for a year for a guaranteed return."
Minimum amount to open an account: £5,000
UBL UK – 1 Year Fixed Rate Cash ISA
"With 4.35% due, savers may find this an attractive option if they haven't used their ISA credit yet, but they should be content with their initial investment as no further increases are allowed."
Minimum amount to open an account: £2,000
Gatehouse Bank - Easy access to cash ISA Bank
Savers who want the flexibility to use ISA cash may find Gatehouse Bank's recent rate hike attractive. The deal now pays an expected profit margin of 3.55% and strengthens its position on the industry's top rate table. account Offers a choice of monthly expected earnings, which may appeal to savers looking to grow their income."
Minimum amount to open an account: £1
NatWest - 2 year flat rate ISA number 323
“This week NatWest raised rates on its 2-year fixed rate ISA, now paying 4.50%. The deal gives it a more prominent position in its industry compared to its peers and is likely to attract savers who plan to Tax-Free ISA Benefits Savers who like to tie up cash through 2025 can continue to grow by a certain date, which may appeal to those who have extra cash to invest or move.
Minimum amount to open an account: £1,000
FAQs
What is happening to the cost of living in the UK? ›
In the UK, the price of consumer goods and services rose at the fastest rate in four decades in the year to October 2022. The annual inflation rate fell to 7.8% in the 12 months to April 2023, down from 8.9% in March 2023.
Will the cost of living go down UK? ›The Office for Budget Responsibility is warning of a big drop in living standards over the next two years. Once inflation is taken into account, household disposable income is set to fall by 5.7% between 2022 and 2024. That is the largest two-year fall since records began in the mid-1950s.
Is it cheaper to live in the UK than the USA? ›When it comes to grocery and food prices, the UK is the winner in terms of overall affordability. The average British household spends less on groceries per month compared to the average American household, and UK supermarkets tend to offer more own-brand products, which are generally cheaper but still of good quality.
Why is Britain so expensive to live? ›To a lesser extent, the UK cost of living is also affected by relatively higher transport and energy costs. Tax rates are important for goods like alcohol, petrol and cigarettes with UK tax rates higher than European / US rates. However, although the UK is expensive in some areas, in other areas it is cheaper.
How much money is enough to survive in UK? ›The average cost of living as a family of four is around $3,135(£2,268) without house rent. As a single person or student, the estimated cost of living per month in the UK is $900(£651) without rent.
Are UK house prices unaffordable? ›The average British home now costs about nine times average earnings: one estimate I recently read reckoned that the last time UK houses were this expensive was in 1876.
Will inflation go down in 2023 UK? ›We expect inflation to fall quite quickly, to around 5% by the end of this year and then meet our 2% target by late 2024. Why is inflation expected to fall quickly during 2023? What is the Bank of England doing to help bring inflation down? How does raising interest rates lower inflation?
Is it safer to live in the UK than in the US? ›Is the UK safer than the USA? The UK has a lower overall crime rate than the US, but the US has a lower rate of certain types of crime, such as property crime. In terms of violent crime, the US has a higher rate than the UK.
Is it better to live in the UK or USA? ›The UK is often considered to be a cheaper place to live. The cost of living in both countries is not the same and can vary depending on where people choose to live. It's also important to note that the average salary for someone in the US is significantly higher than what it would be in the UK due to taxes.
Is it cheaper to live in Canada or the US? ›Overall, both Canada and the US are fairly expensive to live in. Canada has much higher housing costs but healthcare costs are much more expensive in the US. While US salaries are slightly higher, Canadians have a much easier time making a higher salary with less education.
What is the most expensive country in the world 2023? ›
| # | Country | Cost of Living Index |
|---|---|---|
| 1 | Monaco | |
| 2 | Cayman Islands | 103.4 |
| 3 | Switzerland | 114.2 |
| 4 | Singapore | 85.9 |
Food prices are projected to rise in 2023, albeit at a slower pace than they did in 2022, according to the USDA.
What is a good salary in the UK for a single person? ›If you consider that people earning £2,500 to £3,000 gross per month (which equates to a gross salary of around £40K per annum) are thought to be getting a decent wage, then yes. Those earning a gross salary of £3,300 to £4,000 per month, are on a good salary by UK standards.
Why is the UK going through a cost of living crisis? ›This is caused in part by a rise in inflation in the UK, as well as the economic impact of ongoing issues such as the COVID-19 pandemic, Russia's invasion of Ukraine, and Brexit. While all in the UK are affected by rising prices, it most substantially affects low-income persons.
Will food prices go down in 2023 UK? ›Food retailers have said they expect prices to rise in 2023 overall but with the rate of inflation declining through the year and some products which have seen the sharpest rises falling in price.
Is USA affected by cost of living crisis? ›For instance, the inflation rate in the United States has hovered between 8 and 9 percent in the past months, signifying a rising cost of goods across the country. A rising cost of living causes pain even in wealthy countries.
Why is UK inflation so high? ›Britain has struggled more than other countries with the surging cost of food, a shortage of workers to fill jobs and its heavy reliance on natural gas to generate power and domestic heating, all of which adds to inflation pressure.
Why is income so low in the UK? ›In short, UK salaries tend to be lower than the UK due to a number of factors. These include pension benefits, holiday benefits, and, most significantly, healthcare and social welfare. In the UK, we pay higher taxes because a number of things in the UK are subsidised or free, such as healthcare.
Will food be hard to get in 2023? ›2023 is shaping up to be a difficult year when it comes to food shortages. However, the food shortage in 2023 isn't the end of the world, especially if you work with a wholesale food supplier.
How bad will food shortages be in 2023? ›The WFP predicts that by 2023 there will be a shortage of wheat and corn, which are two staple products in the food supply chain. The reports also estimate that these global food shortages will increase food prices and could even trigger a new global recession.
Will grocery prices go down in 2023? ›
Food prices are expected to grow more slowly in 2023 than in 2022 but still at above historical-average rates. In 2023, all food prices are predicted to increase 6.5 percent, with a prediction interval of 4.9 to 8.2 percent.