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Millions to get £122 bank account boost from July – how to check if you’re one | Personal Finance | Finance

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July’s arrival heralds a financial reprieve for millions of UK households as Ofgem slashes the Energy Price Cap, promising lower gas and electricity bills.

After enduring two years of exorbitant energy costs, families can breathe easier with the Price Cap cut set to save the average direct debit-paying household £122 annually.

Yet, immediate bill reductions for direct debit customers may not materialise due to suppliers’ practice of maintaining stable monthly charges to offer payment predictability.

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Eventually, energy accounts will undergo adjustments, potentially lowering bills for many, while consumers in credit are urged to reclaim their overpayments, reports Birmingham Live.

Despite this positive turn, caution is advised as the Price Cap might surge again in October, potentially dampening the current relief. Ofgem has confirmed: “Between July 1 to September 30, 2024 the energy price cap is set at £1,568 per year for a typical household who use electricity and gas and pay by Direct Debit.”

“This is £122 lower than the cap set between April 1 to June 30, 2024 (£1,690). The price cap is based on typical household energy use. The price cap also makes sure that prices for people on a standard variable tariff (default tariff) are fair and that they reflect the cost of energy.”

Customers are reminded the Price Cap only sets out average bills. Those who use more will still face higher bills.



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