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British Gas, EDF, EOn and Octopus Energy customers handed £360 boost from Monday | Personal Finance | Finance

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Energy bill payers with British Gas, EDF, EOn and Octopus Energy will have saved £360 a year since April with the latest price cap drop taking effect from Monday.

Millions across the country will benefit from the drop in the energy price cap from the start of July, with typical bills for a dual fuel account on direct debit dropping £122 down to £1,568 a year.

This adds to the previous drop in bills in April, when the price cap fell £238 a year, meaning bills have dropped a total of £360 a year for families.

With the latest drop, energy bills will fall to their lowest in two years, but will still be at rates £400 higher than they were before the cost of living shot up three years ago.

Those on prepayment meters will see their bills fall to £1,522, a drop of £121.

The Ofgem price cap is set for each quarter of the year, with the new rates to last from July to the end of September.

Experts are predicting the price cap will increase 12 percent from October, with financial journalist Martin Lewis encouraging consumers to see if they can get a better fixed rate deal.

Mr Lewis has als previously criticised the standing charges on energy rates, which mean that low energy users get smaller savings when the price cap drops.

He warned: “It’s a moral hazard that reduces the impact of reducing your usage on your energy bills, because you have these fixed daily standing charges.

“I’ve been campaigning to get them lowered. Both Labour and Tories have now spoken to me and said if they’re elected they will work to lower standing charges – we’ll see how much they deliver on that.”

Another key date next month is July 17, when the latest inflation figures come out.

The Bank of England will be keen to see the latest statistics as they have been hiking the base interest rate in efforts to bring down inflation.

The hike in prices has consistently dropped in the recent readings but the central bank has kept the base rate at 5.25 percent in its latest decisions.

A consultation into proposed changes to Personal Independence Payment (PIP) assessments and eligibility also finishes next month, on July 22.

Anyone can respond to the consultation, with the proposals including making PIP assessments more targeted at the individual needs of each claimant.

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.

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