Cost of living - the latest: The British warned that they would not economize this winter; those with credit should call their energy supplier (2023)

Central points
  • New energy price cap set at £2,074 from July
  • What should you do now?
  • Jeremy Hunt does not rule out further energy assistance
  • Bill payers have warned that they will not be saving this winter
  • Interest rate forecasts have increased significantly in recent days|Ed Conway explains why and what it means
  • Who benefits from rising food prices?
  • Your dilemmas:I am paying off my father's mortgage, how can I be formally added?
  • Budget Mom:Savings for your children|Do food subscriptions save you money?|Holiday expenses|The best broadband deals
  • Live coverage of Jess Sharp and Katie Williams


How will the new energy price limit affect owners of electric cars?

As we reported, today a reduction in the energy price limit was announced, which will come into effect from July 1.

This means that the bills of the average household in England, Wales and Scotland will fall by £426.

What will this mean for owners of electric cars, who undoubtedly use a lot more energy.

Well, a reduction of £1,206 from £3,280 to £2,074 will be positive news for electric car drivers as it means everyone on the standard national energy tariff will pay less than £20 for a full charge of a typical family car from home.

Those who use electricity tariffs and who benefit from cheap, low costs will continue to enjoy even better value.

But for those who travel beyond the reach of their vehicle and rely on fast and ultra-fast chargers, the cost is much higher, said RAC spokesman Rod Dennis.

20% VAT is charged at these charging points – which is 15% more than the VAT on household electricity.

It is important to remember that the energy price cap does not set a maximum amount that a household will pay for energy, but limits the amount that suppliers can charge per meter. units of gas or electricity, so those who use more energy will pay more.


Octopus Energy is set to bring back the Saving Sessions program this winter

Octopus Energy smart meter customers are ready to save by reducing their electricity consumption again this winter.

The company plans to bring back the Saving Sessions program, which saw households switch from incandescent bulbs to candles in the winter of 2022-23 to save money on their energy bills.

The initiative rewarded customers for every unit of energy saved during peak periods.

Octopus said the program shifted energy demand by 1.86 GWh (gigawatt hours) over 13 sessions - the equivalent of stopping two million washing machines.

Almost 700,000 smart meter customers took part and received £5.3 million. paid to participants during the program.

Over £170,000 of this proceeds were donated by customers to the Octopus hardship fund for struggling families.

The news comes after regulator Ofgem announced a reduction in the cap on energy prices on household bills from July.

Greg Jackson, founder of Octopus, said the move ensures that falling global energy costs will be passed on to consumers.

"But the costs are still twice as high as before the crisis," he added.

"We will do everything we can to help customers get through this crisis and we hope the government will continue to help those who need it most."


Summer 'travel mayhem' warned as Edinburgh Airport workers return to strike in pay queue

Passengers could face summer 'travel mayhem' after Edinburgh airport workers voted to strike in a pay dispute, a trade union has warned.

Unite outvoted approximately 275 employees, including members working in security, terminal operations, and exploration areas.

It said 85% supported the industrial action with a 75% turnout and is now urging airport bosses to make an improved bid to "avoid travel chaos" over the summer.

Read more from ourScottish reporter Jenness Mitchellher...


Soda factory workers strike over wages

Hundreds of soda factory workers are set to go on strike over wage disputes.

United members at the Coca-Cola Europacific Partners (CCEP) headquarters in Wakefield will begin a series of strikes from June 8.

Workers overwhelmingly voted for industrial action over a wage deal that the union said was worth an average of 6%.

There will be 14 days of strike action, consisting of three 48-hour strikes and two 96-hour strikes spread over a two-week period.

"Coca-Cola Europacific Partners makes billions but cuts the wages of the very workers who make them," said Sharon Graham, Unite's general secretary.


How the new energy price limit will affect our bills

The pressure on energy prices will ease from July when we are expected to see a difference in what we pay to keep our homes correspondent Paul Kelsoto talk.

Wholesale energy prices began to rise in late 2021, and the surge was exacerbated by the Russian invasion of Ukraine last February.

The high cost of energy has made energy poverty a "mainstream experience" and "pushed millions of families into tight budgets," says Kelso, even as the government mitigated the effects with an energy subsidy program during the winter.

But what happens in July?

Kelso explains that energy procurement costs for suppliers have fallen to their lowest level since 2021, but customers will only see the reduction this summer as companies buy their supplies ahead of time.

And while prices have stabilized, bills are still more than double what they were two years ago.

See Kelso's full explanation of what today's energy price cap announcement means for our bills here...


Heathrow's security guards start a new pay strike

Security guards at Heathrow Airport went on a three-day strike today in a pay dispute.

Unite members have already organized 15 days of protests, including during the busy Easter period.

Heathrow said it had contingency plans to keep the airport open and operating as normal, adding that passengers could expect a "smooth" half-time flight.

"Passengers should not be alarmed by Unite's mid-term strike action," said Heathrow chief executive John Holland-Kaye.

“These strikes are completely unnecessary. When I talk to colleagues, the overwhelming message is that they just want to vote for our pay deal, but Unite won't let them."

Unite said Heathrow's security staff were paid less than staff at other major airports in London and the South East.


Fuel prices have dropped this month - here's what it'll cost you at the gas station

Fuel prices have fallen again after falling below 145p last week for the first time in 18 months.

According to RAC Fuel Watch, the average price of a liter of unleaded petrol is now 143.35p, up from 146.89p last month.

This means it will cost £78.84 to fill up a typical 55-litre family car.

Diesel costs 154.31p a litre, up from 161.06p in April, meaning a car of the same size costs £84.87 for a full tank.

While prices continue to fall, RAC spokesman Rod Dennis says petrol costs "could bottom out in the next few weeks".

Saudi Arabia and other OPEC+ oil producers plan to limit oil production to around 1.16 million barrels a day, which Dennis said could cause gasoline prices to "increase a bit."

For diesel, he says, it remains "hugely overpriced" across the country, even though wholesale prices are cheaper than unleaded petrol.

Wholesale prices for both fuels have been mostly identical in previous months, but petrol has risen to at least 5p a litre. liters.


Smaller lenders take out mortgages because of problems with interest rates

A spike in the cost of borrowing in the UK over the past 48 hours has forced smaller UK mortgage lenders to temporarily withdraw their deals and revise their offer prices to new customers.

UK gilts surged yesterday and today (to their highest level since last year's disastrous mini-budget) after inflation figures showed price increases not falling as fast as expected - leading to predictions interest rates will have to rise again .

Central banks raise interest rates so that people have less money to spend and save more, which usually reduces inflation.

As Ed Conway explained in our post at 6.43, the bank rate could now hit a high of 5.5% this year - last week it was expected to be 4.75%.

Now Reuters reports that at least seven small lenders have recalled products or announced a revaluation this week.

These lenders are mostly focused on the buy-to-let market - and none of them are big high street banks.


Car production is up for the third month in a row

Car production rose for a third consecutive month as supply shortages continued to ease, new figures show.

A total of 66,527 cars were produced in April, an increase of almost 6,000 compared to the same month last year, the Association of Automotive Manufacturers and Traders (SMMT) said.

Exports fueled production, increasing 14.7% to 54,820 vehicles, with more than four out of five cars produced in the country going overseas.

The European Union remained the world's most important market with 58% of all exports, followed by the United States, China and Australia.

Hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) accounted for more than a third of total production.


Savings offer of the week Rachel Springall has released her savings deals of the week.

Chip - instant access powered by ClearBank

“Chip raised the interest rate on its Instant Access powered by ClearBank to 3.75% this week, improving its market position. Savers looking for a competitive interest rate on a flexible savings account may find this offer attractive as it allows for unlimited withdrawals. Savers should note that they must have a Chip subscription (for which both free and paid options are available).”

Minimum opening amount: £1

Investec Bank plc - Saving for 1 year with a fixed interest rate

"By paying 5.00%, the deal has improved its standing in its sector compared to peers and could be an attractive choice for savers looking to lock in their money for a year for a guaranteed return."

Minimum opening amount: £5,000

UBL UK - 1 Year Fixed Rate ISA

"Currently paying 4.35% at maturity, savers may find this an attractive choice if they have not yet used up their ISA allowance, but need to be comfortable with the initial investment as further additions are not permitted."

Minimum opening amount: £2,000

Gatehouse Bank – Easy Access Cash ISA

“Savers who want flexibility in using ISA cash may find the recent interest rate hike from Gatehouse Bank attractive. The deal is now yielding an expected yield of 3.55%, improving its position in the highest stakes tables in its sector. The account offers monthly expected return profit. an opportunity for profit that may appeal to savers looking to supplement their income.

Minimum opening amount: £1

NatWest - 2-Year Fixed ISA Issue 323

“This week, NatWest raised the interest rate on its 2-year fixed-rate ISA, which now pays 4.50%. The deal occupies a more prominent position in its sector compared to its peers and could attract savers planning to take advantage of the tax-free ISA credit. Savers who want to lock in their money until 2025 can make further additions until a specific date, which may appeal to those who may have extra funds to invest or transfer."

Minimum opening amount: £1,000


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