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Pensioner, 90, says he will have to shower once a week as government withdraws fuel payment and energy bills go up | UK News

A pensioner who faces a fuel payment cut says he worries about whether he will make it through the winter when energy prices go up.

Roy William Roots, 90, is among the estimated 10 million pensioners who are facing a cut to their £200 or £300 winter fuel payment, which will now only go to those who receive pension credit or other means-tested benefits.

It comes as industry regulator Ofgem said the energy price cap per household is set to rise by 10% in October to an annual average of £1,717.

The hike will see typical households spend £12 a month more, or £149 a year, on gas and electricity bills when using direct debit.

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Mr Roots, from Maidstone in Kent, said the news of energy bills going up further was “terrible”.

The pensioner is already taking drastic measures to avoid being slapped with bills he can’t afford, like cooking in batches for a few meals, doing the washing at 10pm and only putting the heating on in November.

He told Sky News: “Before I had a shower, I had a bath, and I used to have it up to my neck and lie in it for hours. But now I might shower every two to three days – I just can’t afford to have it on.”

Mr Roots, who has struggled with his mental health in the past, added: “It depresses me.”

He added he is already starting to think about saving for the winter to make sure he will be able to plug the gap left by the government’s decision to cut the winter fuel benefit.

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Mr Roots said he will likely have to shower once a week or cook food for three or four days instead of two.

“It makes me feel horrible,” Mr Roots said, adding he worries about whether he will be able to get through the winter when faced with choices like “do I cook or do I have my heating on?”

Addressing the Labour government, he said: “I’d want them to help us still. To be fair and help us out.”

Read more:
What is the energy price cap?

Ofgem chief executive Jonathan Brearley said: “We know that this rise in the price cap is going to be extremely difficult for many households.

“Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.”

Energy Secretary Ed Miliband admitted the rise in the cap was “deeply worrying” but defended the cuts to winter fuel payments.

He said: “The truth is that the mess that was left to us in the public finances is what necessitated that decision around winter fuel payment and us focusing it on those who need it the very most.”

Energy price cap: Average bills to fall by more than £100 – but predictions say they will rise again | Business News

The average annual energy bill will be £506 cheaper than a year ago from July, the sector’s regulator has announced.

The energy price cap – which limits what can be charged per unit of energy – is due to fall from the month after next.

It means the average annual bill will be £1,568 a year, 7% less than at present.

But while the July figure is a reduction, bills are still more expensive than before.

Before the energy price shock, caused primarily by Russia’s invasion of Ukraine in February 2022, a standard 12-monthly bill was £1,084.

Money latest: Energy bills fall – but predictions say they will rise again

So compared with three years ago, energy is costing homes an extra £484.

During the current period from 1 April to 30 June, the energy price cap is set at £1,690 per year for a typical bill.

Energy regulator Ofgem sets the cap four times a year, with the latest announcement applying from July to September.

The overall rate of inflation came down in April – in large part thanks to the current higher cap which came into effect that month and brought prices down for energy users, according to the Office for National Statistics.

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Price cap model faces review

However, many households are in debt to energy providers.

“The fall in the energy price cap reduces bills slightly, but our data tells us millions have fallen into the red or are unable to cover their essential costs every month,” said Dame Clare Moriarty, the chief executive of Citizens Advice.

“People cannot rely on lower energy prices alone to escape the financial issues they’ve been experiencing. That’s why we need better targeted energy bill support for those really struggling to keep the lights on or cook a hot meal.”

More expense to come

Latest forecasts suggest bills will increase again coming into winter as wholesale gas costs are on the rise.

Respected research firm Cornwall Insight said it expects the fall announced today “may be temporary”.

It predicts a typical bill will increase to £1,762 from October and remain around this level until the end of March.

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Gas prices reached four-month highs earlier this week on concerns that Russia could halt gas flows to Austrian multinational oil, gas and petrochemical company OMV and that US exports to Europe may be damaged by a contractor at a Texas terminal filing for bankruptcy protection.

More than seven million people still struggling with bills and credit repayments, says FCA | Business News

More than seven million people in the UK were struggling with bills and credit repayments in January, according to a financial watchdog.

The number is down significantly on the 10.9 million people in the same position in January 2023.

However, it’s still above the 5.8 million recorded in February 2020, before the pandemic and the cost of living crisis.

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Renters, single adults with children, adults from a minority ethnic background and those in northeast England were most likely to be in difficulty, according to Financial Conduct Authority (FCA) research.

Almost two-thirds of renters saw their rent increase in the previous 12 months, and half said they were not coping financially or were finding it difficult to cope.

Twenty-six per cent of renters had fallen behind on, or had missed paying, at least one of their bills or credit commitments in the previous six months – more than double the UK average of 11%.

Despite this, only 7% of renters missed a rent payment, with the report saying this showed many tenants prioritised this over other bills.

Financial firms must support customers and help them manage payment difficulties, the FCA said, adding that it had cracked down on firms not complying.

The research – based on 3,450 adults – showed two in five people behind on their bills had not spoken to their lender about it.

Debt advisers and support charities are also available to help – many of them for free – and 2.7 million adults said they had used these options in the 12 months to January.

Nearly half said they were in a better position as a result.

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Sheldon Mills, the FCA’s executive director of consumers and competition, said it was “encouraging” to see people benefitting from the help available.

“If you’re worried about keeping up with payments, reach out to your lender straight away,” he said.

“They have a range of support options and will work with you to agree the best one for you. You can also find free debt advice through MoneyHelper.”

Mobile phone customers face ‘lose-lose’ situation as bills go up | Business News

Mobile phone customers face either a “huge” mid-contract price rise or a “crippling” exit fee from April, according to a watchdog.

Which? says Virgin Media and O2 are expected to hike prices by up to 8.8% in April – the highest increase in percentage terms among major providers.

The alternative is a potentially “exorbitant” exit fee, with its analysis suggesting their customers could face a combined cost of up to £692.37 if 12 months were remaining on their contracts.

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Which? calculations suggest an in-contract Virgin Media customer could see their annual broadband bill increase by £39.14 – or be charged an exit fee of £403.91 if they were to leave their contract a year early.

Since the companies merged, Virgin Mobile customers have been migrated to O2 and the providers have begun offering bundled deals.

Media regulator Ofcom is currently reviewing inflation-linked, mid-contract price rises but is yet to publish its final decision on its proposals to ban the practice.

Which? director of policy and advocacy Rocio Concha described a “lose-lose” choice for Virgin Media and O2 customers as “few would have anticipated such steep price rises when they signed up”.

She added: “Ofcom has clearly stated that the practice of inflation-linked mid contract price rise terms can cause substantial consumer harm.

“Telecoms firms must do the right thing and immediately scrap these rises, rather than cynically taking the opportunity to cash in one last time at the expense of their customers before new rules take effect.”

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How do we pull UK out of recession?

Ofcom’s latest figures show Virgin Media is the most complained-about broadband, landline and pay TV provider and received just one star for customer service in Which?’s annual broadband provider rankings.

Meanwhile, the average O2 SIM-only mobile customer faces a £26.44 annual price hike, the highest increase of any network by percentage but slightly less than Vodafone, which has higher prices overall on average.

Virgin Media O2 said customers faced increases of “up to” 8.8%, because the additional 3.9% increase on top of RPI (Retail Price Index) would not be added to the bills of “millions” of customers, and it only applied price increases to customers’ airtime plans, not their device plans.

The average effective mobile price increase would be 5%, not 8.8%, it said.

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Inflation holds steady

A Virgin Media O2 spokesman said 2023 was a “record year for traffic” on their networks and that the firms are “investing heavily” to ensure they continue to “provide fast and reliable connectivity”.

The amount received from price increases is “greatly outweighed” by the £5m they invest “every single day” to upgrade networks and services, he added.

The spokesman added: “Which?’s own analysis shows that we continue to offer excellent value, with cable customers paying an average of just 10p more per day, and mobile customers facing an effective average increase of just 5p a day, for services they’re using almost constantly.

“This is further backed up by recent independent analysis which found that the cost of telecoms services has fallen by a fifth since 2017, while at the same time speeds and usage have increased significantly.”

Energy bills to fall from today but will still cost almost double pre-crisis levels | Business News

Households will pay less for their gas and electricity from today but bills will still be almost double what they were before the energy crisis.

The average household energy bill will fall by £426 a year from 1 July after Ofgem dropped its price cap following tumbling wholesale prices.

People had been advised to submit meter readings before midnight on 30 June to ensure they are paying the lower prices as soon as they come into effect.

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Those who could not are advised to do so as close to the date as possible, taking a time-stamped photo as proof.

The industry regulator is cutting its price cap from £3,280 to £2,074.

The change is a relief for consumers who have seen typical bills rocket upwards from £1,271 a year in October 2021 due to soaring power prices driven by the post-pandemic recovery and Russia’s invasion of Ukraine.

Households have been partly shielded from the most recent rise in prices by the government’s energy price guarantee (EPG), which limited annual energy costs to £2,500 for the average household.

Ofgem’s latest cut means its cap will again govern household bills, with the guarantee no longer applying.

The change in the cap will result in a typical reduction of £426 from £2,500 to £2,074 – a fall of about 17%.

The energy price cap sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity.

The headline price cap figure is an average across households rather than an absolute cap on bills, so those that use more will pay more.

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Which? Energy editor Emily Seymour said: “While the new price cap will see typical bills drop by around £500, energy bills will still be almost double the amount they were before the energy crisis began – which will be unaffordable for some households.

“If you are concerned about struggling to pay higher bills, there is help available. Speak to your energy provider about a payment plan you can afford and check to see if you qualify for any government schemes.”

Ms Seymour added: “Fixed deals are starting to return to the market for existing customers of some suppliers. We wouldn’t recommend fixing anything higher than the unit rates in your current deal or for longer than a year.

“If you are offered a deal, then it’s really important to check the tariff’s exit fees in case you want to leave that deal early if the price cap comes down.”

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Energy price cap reduction explained

A spokeswoman for Energy UK, which represents suppliers, said: “The fall in the price cap from July will be welcome news for customers who have had to face record energy bills over the last year amidst a steep rise in the cost of living and for whom the government’s bill support has been crucial in preventing even bigger difficulties.

“However, bills remain much higher than they were 18 months ago and many customers will continue to struggle, especially following the removal of some of that support.

“If – as the current projections indicate – annual bills of £2,000 plus become the new normal, it underlines the importance and urgency of the energy industry, Ofgem, government and consumer groups working together to put in place targeted support for those most in need next winter.”

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Household energy bills are expected to fall again, to below £2,000 a year from October, according to the latest forecasts.

Energy industry consultancy Cornwall Insight said it thinks the price cap on energy bills will fall to £1,978.33 from October from July’s £2,074, but rise again from January to £2,004.40, based on Ofgem’s current measures.

However, the regulator is adjusting its definition of the average household’s consumption from October, down from the current 2,900 kWh a year for electricity to 2,700 kWh, and from 12,000 kWh for gas to 11,500 kWh, to reflect consumers using less energy to cut costs in the face of high prices.

Based on Ofgem’s adjusted definitions of average usage, Cornwall Insight has forecast that the regulator will announce price caps of £1,871 a year from October and £1,900 from January.

Energy price cap falls significantly as Ofgem reveals new level for average bills | Business News

The energy price cap on household bills has fallen to an annual average of £2,074 between July and September, removing some of the financial pain inflicted by the unprecedented surge in gas and electricity costs.

Industry regulator Ofgem made the announcement against a backdrop of good news for the cost of living crisis – with wholesale energy prices falling.

They spiked last year after Russia’s invasion of Ukraine, which saw both oil and natural gas costs shoot up – a situation that was made worse by the imposition of sanctions on the Kremlin by Western governments.

The new cap figure compares to the £3,280 level set by Ofgem for March-June, meaning a £1,206 reduction in the cap from July and a reduction in average bills by £426 a year.

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However, that cap is currently irrelevant.

That is because the government’s energy price guarantee (EPG), which limits the amount suppliers can charge per unit of energy used, ran throughout the autumn and winter months and remains in force until 1 July.

That keeps bills at around an average annual level of £2,500.

There is no further taxpayer support on the table from July onwards.

The price cap, which is reviewed every three months, will take over again from then. A typical bill should be around £500 cheaper on a 12-month basis.

Current projections predict a stable outlook for energy bills at around the £2,000 level but such a sum remains more than £1,000 above the pre-pandemic average and much will depend on the potential for further wholesale market shocks.

Gas supplies remain the core worry for prices ahead.

Day-ahead wholesale costs peaked at an industry measure of 570p per therm last August but are currently at 66p.

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IMF: Cost of living crisis to continue

Longer term contracts are more expensive, with year’s end delivery at double that level at around 129p.

That reflects the likelihood of increased demand as winter approaches.

Simon Cran-McGreehin, head of analysis at the Energy and Climate Intelligence Unit, said of Ofgem’s announcement: “Whilst the falling price cap is a relief for households, this gas crisis will linger, with wholesale price forecasts suggesting that the average household energy bill might not get below £1,700 a year for the rest of this decade.

“That’s around £600 (about 50%) above where it was before the gas crisis.”

He also warned: “If we don’t get on with insulating homes, installing heat pumps and building more renewables, gas demand will remain high and that means bills will too.”

The cost of living crisis is set to linger.

While fuel bills have fallen back – with energy set to follow – the latest inflation data showed food costs continuing to rise at an annual rate of almost 20%.

Economists have pointed to a rise in so-called core inflation, which strips out volatile elements such as food, as putting further pressure on the Bank of England to maintain its cycle of interest rate hikes.

They make the immediate pressure on budgets worse by adding to borrowing costs but are designed to dampen demand, and therefore prices, in the economy in the longer term.

Millions of mobile phone and internet users could be paying 17.3% more on their bills this time next week | UK News

Millions of mobile phone and internet users are facing a price increase of 17.3% on their bills in just a week’s time.

Every April, many broadband and mobile firms raise their prices in line with the Consumer Price Index (CPI) plus an additional 3-3.9%.

As these price rises are often applied mid-contract, people either have to accept these new prices or pay costly exit fees to leave their contract early.

But with some 11 million people out of contract, if they switch before the rise next week they would be exempt from the increase.

It comes as industry regulator Ofcom launched a review to determine if consumers have enough clarity on mid-contract cost increases.

Uswitch has also been campaigning to allow all consumers to leave contracts penalty-free in the face of price rises as most providers don’t allow this. The price comparison site believes providers who impose inflationary increases should allow customers to leave their contract early without penalty, or offer contracts where the price remains fixed for the duration.

Ernest Doku, telecoms expert at Uswitch, said: “There is still time to avoid the impact of April’s price rises. Broadband and mobile customers should check now to see if they can switch to avoid paying more than they need to.

“Millions of consumers are currently out of contract, and therefore can still shield themselves from the brunt of these inflation-busting increases.

“Not only could you switch to a faster and more reliable product, but also pay less per month – although future price rises may still apply from 2024 in many cases.”

How to beat the broadband hikes from the experts at USwitch

1. If you are out of contract or coming to the end of your contract: Some providers will allow you to switch to a new deal this month to avoid mid-contract increases until 2024

2. If you are mid-contract: Check if you are eligible to switch and if there are any charges associated with switching. Even if there is a charge to switch, this may still offer you a saving in the longer term

3. If you can’t switch, sign up: Companies like Uswitch provide up-to-date consumer information on the mobile and broadband market. Sign up for the latest deals so you’re fully clued up on the market when you can switch in future

4. Check if you’re eligible for social tariffs: If you receive state benefits you may be eligible to sign up for social tariffs, designed to ensure everyone has access to modern-day utilities such as broadband. Major providers such as EE, Virgin and Vodafone offer connectivity from £12.00 with no set-up fees – and no mid-contract price increases

Who has the highest early exit fee?

Some internet companies have confirmed they will be doing more to help vulnerable and low-income households. For example, Vodaphone is automatically exempting customers that it has identified as financially vulnerable from this year’s price rises.

TalkTalk has said it will automatically exempt its most financially vulnerable customers – but did not explain its criteria for assessing this or how it would be publicised.

Providers know that for financially vulnerable customers, mid-contract price rises are potentially devastating – which is why their social tariffs offer fixed prices that are exempt from annual rises.

Based on the average amounts paid by low-income customers in Which?’s latest broadband survey, the consumer champion calculated how much a low-income BT, EE, Plusnet, TalkTalk or Vodafone customer (those earning £21,000 or less a year) could see their payments increase.

It found this group could see payments go up £77 per year. On average, they face a rise of £52 annually and look set to pay £431 a year for their broadband – at least 2% of their annual income.

BT customers had the highest monthly prices of any of the companies Which? looked at and could see an annual increase of almost £60 from next week. Low-income BT customers could also face the highest exit fees, costing £194.34 if they want to leave a year early.

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Unexpected rise in UK inflation

Switching to a social tariff

Which? research shows that the average low-income customer affected by the price rise could save as much as £220.32 – £18.36 per month – by switching to a social tariff.

These are cheaper broadband and phone packages for people claiming Universal Credit, Pension Credit, and some other benefits.

They are delivered in the same way, just at a lower price. Some providers may call them “essential” or “basic” broadband.

BT customers would make the biggest annual saving of £260.16 (£21.68 a month) by switching to a social tariff. Vodafone customers would make the lowest savings of £168 a year (£14 a month).

Rocio Concha, Which? Director of Policy and Advocacy, said: “Telecoms providers must urgently cancel the 2023 price hikes for financially vulnerable customers. They should work to proactively identify these customers and ensure they’re not financially penalised, even if they don’t take up a social tariff.”

Energy price cap expected to fall – but bills will continue to rise | UK News

Ofgem is expected to announce that it will drop its cap on the amount energy suppliers can charge by around £1,000 – but bills could still rise by an average of £500.

According to the latest forecast from energy consultancy Cornwall Insight, the energy regulator is expected to announce a fall in the cap to around £3,295 for a typical household from April.

But customers are likely to pay 20% more – around £500 – because the government’s additional support (the energy price guarantee) only partially protects them from paying the full price cap.

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Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “Regrettably, the forecast for April looks set to leave the price cap above the increased energy price guarantee level, meaning average annual consumer bills will effectively jump by 20% (£500).

“However, this is before we take into account the end of the £400 energy rebate scheme in March, meaning that the cost of energy for households will increase by even more.

“While tumbling cap projections are a positive, unfortunately already-stretched households will be seeing little benefit before July.

“While prices under the cap remain considerably higher than historic norms, the combination of falling wholesale prices and an increase in the EPG could see the return of competitive tariffs, and with it the chance for consumers to take back some control over their energy bills.”

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UK energy crisis

The government’s energy price guarantee limits the amount paid by domestic customers to 34p per kWh for electricity and 10.3p per kWh for gas – £2,500 a year for a typical household, although the exact total depends on your usage.

The government picks up the difference between Ofgem’s price cap and the guarantee but this support will be cut back from April, meaning the average bill rises to £3,000.

Ofgem’s price cap is currently £4,279 per year for the average household, meaning the government has been paying an average of about £1,779 per year to energy suppliers for every household between September and March.

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The predicted fall of the price cap to £3,295, and the rise of the energy price guarantee level to £3,000, means the government will be paying just £295 per household per year from April to June.

Cornwall Insight said it expects the price cap to fall further later in the year – to £2,153 in July and then £2,161 from October.

Merseyside’s mega-battery is switched on – and here’s how it will save billions of pounds off bills and huge amounts of CO2 | Climate News

It looks like a self-storage park: rows of shipping containers in a patch of Merseyside waste ground. But appearances can be deceptive as this is the first step in saving billions of pounds off bills and millions of tonnes of carbon. It’s a mega-battery.

Let’s take a step back. One of the great advantages of fossil fuels, and one we take largely for granted, is they are so easy to store. Piles of coal, drums of oil, tanks of gas. They just sit there waiting for a deliberate spark.

Renewables are different: you can’t hold the wind or bottle the sun. As the proportion of green power on our grid grows so does this inconvenient truth.

The variable and uncontrollable nature of solar and wind is not a new discovery, but it is only now that we are coming close to an affordable solution: massive banks of lithium-ion batteries similar to those in a laptop, phone and only affordable now thanks to their use in electric cars.

Sky News has been given exclusive access to Europe’s biggest grid-linked battery just after switch-on. It covers an area of around two football pitches in nearly one hundred containers and can store as much electricity as 1,500 electric cars, taking in the uneven power from wind turbines and smoothing it out for local homes and businesses. If you didn’t do this, lights would dim, or wires could melt. Most of that job today is done by either firing up mini generators – so called gas-peakers – to fill the power troughs or turning turbines off to prevent surges.

James Basden, CEO of the operator Zenobe, says their batteries will cut carbon emissions.

“Battery storage sites like this are enabling more wind power to come on, but also it’s shutting down the gas generators that are currently operating and as a result we save huge amounts of CO2.”

Sky News has been given exclusive access to the biggest grid-linked battery just after switch-on
Image:
Zenobe’s grid-linked battery

But they should also cut bills too. When wind farms must turn off, they are paid to do this, paid to not generate. This is known as “curtailment” and the total cost is over half a billion pounds per year and rising as we have more renewables in the energy mix.

Zenobe and other big battery developers say if we can store it, we can use it and not pay to waste it.

“This is pushing power back onto the grid in a very consistent and predictable way… So sites like this are going to reduce the amount of curtailment. This site itself will save somewhere between 50 and £100m to consumers over the next 15 years.”

Sky News has been given exclusive access to the biggest grid-linked battery just after switch-on.

Batteries are one of many storage technologies in development. Scottish Company Gravitricity are using spare electricity to lift very heavy weights to the top of very deep shafts and then, when we need the wattage, they can be dropped to spin turbines.

HighView Power is using excess power to compress and refrigerate air, then store it in tanks for as long as required. When peak demand comes, the air is allowed to expand and, once again, drive generators. Hydrogen has a potential role in storage too: use electricity for the energy intensive process of breaking hydrogen out of water. Getting the H from the H2O gives you a tank of that zero-carbon fuel.

Sky News has been given exclusive access to the biggest grid-linked battery just after switch-on.

Dan McGrail, from the trade body Renewable UK, says: “We’re going through one of the biggest changes in our energy system of all time at the moment. So having energy, energy storage in the system is going to be a really vital component of how the system works in the future and stays in balance to provide electricity for homes and businesses.”

But none of these storage technologies is yet sufficiently mature to fill long winter spells of windless cloudy weather. To keep the lights on, some baseload of nuclear and reserve of gas power is likely to be needed for a few decades yet.

Water bills in England and Wales to rise by the most in almost 20 years | UK News

Water bills in England and Wales will increase by the most in almost 20 years from April.

The 7.5% hike will see the average customer pay £31 more annually than last year – taking the typical bill to £448, according to industry body Water UK.

It said bills were lower in real terms than a decade ago and that the below-inflation increase reflected rising energy costs, as water firms use 2% of the country’s electricity.

Consumer groups have warned that some of the one in five who are already struggling to pay could be pushed over the edge.

People with large families or on a meter could face a rise much higher rise than the average £31.

The Consumer Council for Water (CCW) said there was a postcode lottery of social tariff schemes, meaning some people who need help with their bills “slip through the net”.

“These increases will bring more uncertainty to struggling households at a time when they can’t be certain they will get the help they need,” said CCW chief executive Emma Clancy.

“Low-income households need immediate relief and the long-term security of knowing their water bill will be affordable.

“It’s not fair that struggling households face a postcode lottery when it comes to getting help with their bill – that’s why we urgently need a new water affordability scheme that provides consistent support based on people’s needs.”

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Fuel poverty charity National Energy Action also called for social tariffs to be made “fairer, more consistent, and accessible to everyone who needs it, regardless of where they live”.

Water UK policy director Stuart Colville said an extra £200m was being released by the companies to help such people.

“Anyone with worries should contact their water company or go to supportontap.org for advice, and it’s worth remembering that water companies will never cut anyone off, or make them use a prepayment meter,” he said.

Mr Colville said the rise would also support record investments and that a further £70bn would be spent in the coming years on new reservoirs and “building new reservoirs and ending overflows into rivers”.