Kevin Peachey
Personal finance correspondent

Which households are eligible for Warm Home Discount in 2022/23? asks Glen Watson from South Yorkshire.

The Warm Home Discount is worth £150 this winter, and will be paid automatically as a discount to an electricity bill between October and March.

It covers England, Scotland and Wales but, if you live in Scotland, you may need to apply.

It is paid to people on low incomes, including some low-income pensioners. You can find more on the eligibility criteria here, external.

However, it is not to be confused with the Winter Fuel Payment, which is worth more, is paid to all pensioners, and this winter includes a one-off top-up from the government.

Fraudsters have been contacting people, pretending to be Ofgem, telling them to apply for their energy bill rebate.

It comes as desperate households already struggling to pay energy costs now face even higher bills after an 80% increase in the price cap.

Octopus Energy and Which? have both issued recent warnings to customers about the scams.

"Fake Ofgem emails, using its logo and a fake online portal, are tricking people into handing over personal and financial information in the hope of receiving an ‘energy bill rebate’", Which? tweeted, external.

Why is the price of green energy going up?published at 14:24 British Summer Time 26 August 2022

14:24 BST 26 August 2022

Kevin Peachey
Personal finance correspondent

Steve Walker from Wolverhampton asks: My energy supplier continually states that they attain their energy from wholly renewable sources. Why is renewable energy increasing in costs exactly the same as fossil sources?

This is a knotty issue, and one which is a matter of considerable debate.

The reality is that the amount green energy firms pay the companies that generate their energy is determined by the wider wholesale energy market.

Some renewable energy goes into the grid where it is mixed up with power generated elsewhere, forging more of a link.

Lots of companies and campaigners want the links to be decoupled where possible.

Is there enough financial support on offer for working people?published at 14:17 British Summer Time 26 August 2022

14:17 BST 26 August 2022

Iona Bain
Broadcaster and financial journalist

Next up is Andrew, from the West Midlands, who asks whether there's enough financial support on offer for working people who are just above the benefits threshold.

You have to be claiming one of the six main means-tested benefits in order to receive the government’s Cost of Living payment, external. If you don’t qualify for these payments, and you’re not a pensioner or claiming disability benefits, you will only receive a £400 discount on your energy bill – as things stand.

There has been speculation as to whether the government will widen support for lower-income households. This can be difficult to do as the benefits system is a good mechanism for ensuring help reaches the people who need it most.

I would always check if you are entitled to any benefits, even if you are in work. I would also find out if grants are available in your local area or related to the profession in you work. The charity Turn 2 Us has a very helpful Grants Finder tool.

Finally, people who miss out on the Cost of Living Payment despite being on a low income may be entitled to funding from the Household Support Fund. Find out from your council whether you’re eligible.

Emily McGarvey
BBC News Live, reporting from Ipswich

Tony Casey has owned the Shamrock pub in Ipswich for the past eight years. Unlike many households, there is no price cap on commercial energy bills.

Tony says the government needs to step in urgently to provide support to small businesses like his.

“In the summer months, our bills are usually £900 to £1,100 per month, but we’re looking at a minimum of £3,000 for the month of August I presume - it’s frightening times.”

Tony worries he will face bills four times what they are currently when businesses are set to renegotiate their electricity and gas prices in October.

“The beer [cost] just has to go up, and you’ll have to cut costs somewhere else just to pay for energy.

“You can’t keep adding on prices for the customers. It’s a catch-22. You put up the prices and the customers will go, but you’ve still got bills to pay.

“I’ll have to do more hours again, you’ll have to cut costs somewhere. They could turn off the switch and leave us with no power, then you’re defeated.

“They have us over a barrel.”

Are prices rising in Russia too?published at 14:05 British Summer Time 26 August 2022

14:05 BST 26 August 2022

Olga Ivshina
BBC Russian Service

Chris Bradley in Durham asks: Are the Russians suffering a cost of living crisis, or is it just us? For this question we went to our BBC Russian colleague Olga Ivshina.

Energy prices have always been way lower in Russia than in the West, due to the fact that Russia does not import gas. The way utility services are organised in Russia is also very different. So energy bills have never been a major part of the household bill.

However, Russia has more international sanctions introduced against it than any other country in the world. So do ordinary Russians feel this toll?

At the start of Russia’s invasion in Ukraine, many familiar international brands left the country. And the remaining foreign manufacturers have sharply reduced the range of products and services. This was felt in Moscow, where many malls had to shut half of their shops. But away from the capital and other big cities, the landscape and emotions are different.

“Yes, because of all those sanctions, it is harder to get spare parts for car repair,” a car mechanic from a small Russian town in Siberia told me.

“However, we are not in Moscow. People here have rarely used official car repair shops, even before the sanctions. So now they will just keep coming to friends' garages and other [unofficial] workshops. Our home-grown engineers know how to jerry-build.”

Many Russians outside of Moscow and St Petersburg did not have time and opportunity to get used to the benefits of globalisation. Big brands and goods from the US and Europe were only known there in the form of their cheap equivalents, produced in China or Turkey.

But even the cheap goods will be harder to sell now. Many Russians have been struggling to keep up with the rising costs of living even before the war. According to official figures, over 20% of Russians have been living in poverty.

According to recent polls, half of the population is going to work after retirement to "make ends meet" (this figure has almost doubled in the past 10 years), and another 24% are counting on the small gardens they have, preparing to grow and harvest potatoes and other homegrown vegetables to avoid buying things.

We don't buy much Russian gas, so why are our prices rising?published at 13:59 British Summer Time 26 August 2022

13:59 BST 26 August 2022

Kevin Peachey
Personal finance correspondent

Earlier, Ofgem said Russia's actions were one of the main causes of the crisis. Now Mike and Brenda Kirk from Kent are asking: Can you please explain why we - the UK - are facing such high increases in gas prices and possible gas shortages? We see our gas comes from home-produced (47%), imported by pipe-line (45%) and LNG (8%). We also read we get little from Russia. So why are we seeing such incredible price rises?

The Kirks are correct in that we receive very little, if any, gas from Russia.

But wholesale prices are not set on a domestic level, dependant on where we get our gas.

Instead, suppliers are buying from a more international market – which is facing large price increases.

The bad news is that the wholesale price continues to rise, and is forecast to keep rising. Hence, we are being told to expect domestic bills of more than £5,000 a year in January, then £6,000 in April.

Image source, .

Image source, Gett

Energy company SSE Airtricity is putting up its gas and electricity prices in Northern Ireland again.

Gas prices will rise by 28.3% from 1 October and electricity prices will go up by 35.4% from the same date.

The increases will affect up to 190,000 households in Northern Ireland.

Peter McClenaghan from the Consumer Council said: "We are facing into a very serious crisis this winter and I am angry and fearful on behalf of Northern Ireland consumers."

SSE Airtricity is Northern Ireland's largest household gas supplier with about 188,000 customers.

Those customers have already seen the price they pay more than double since the spring of last year.

SSE Airtricity is also the second largest supplier of household electricity, with about 168,000 customers.

They will see their bills rise by the equivalent of another £330 a year.

Are students like me eligible for financial support?published at 13:43 British Summer Time 26 August 2022

13:43 BST 26 August 2022

Iona Bain
Broadcaster and financial journalist

Phoebe Irven, a sixth year medical student from Manchester, wants to know if there'll be any support for students who are receiving maintenance loans that have not been adjusted in accordance with inflation, the increased cost of living and rising energy bills.

She rightly points out that low income households are eligible to receive £400 over the winter for energy bills, but wonders if students qualify - and they do.

Students like Phoebe are entitled to receive the £400 discount on energy bills that the government announced earlier this year. This is true even if they pay all-inclusive bills to their landlords, and that discount should be passed on either as a bank transfer or a future rental deduction.

But there are fears that landlords won’t pass on the £400 discount because there are under no legal obligation to do so. If your landlord doesn’t play ball, contact Citizens Advice or Shelter for advice. Keep a close eye on your energy usage by taking regular metre readings to ensure your landlord doesn’t overcharge you.

You could also find out what financial support your university can offer. Hardship funds are widely available for students who are really struggling with their finances. Finally, bear in mind that if you live in a house share and the owner of the property is liable for council tax, you won’t get the £150 council tax rebate.

When will I get my cost of living payment?published at 13:37 British Summer Time 26 August 2022

13:37 BST 26 August 2022

Kevin Peachey
Personal finance correspondent

Lee Finley asks why did some people who are entitled to the cost-of-living payment not receive it on 14 July? When can people expect to receive it?

The six million people eligible for the first cost of living payment should have received it by now. It is paid to those on low incomes who receive certain benefits.

Anyone who thinks they are entitled to the help, but hasn't got it, should contact the office that pays their benefit or tax credits.

The second payment should come in the autumn.

Every household will have £400 knocked off their bill in monthly instalments from October, but all eyes are on a new prime minister regarding further support measures.

Image source, .

Why has the standing charge gone up?published at 13:32 British Summer Time 26 August 2022

13:32 BST 26 August 2022

Kevin Peachey
Personal finance correspondent

Next up is Carolyn Wright from Thetford, who asks: I'd like to know why, on top of the rise in electricity prices, has the daily standing meter charge also increased? My daily standing charge went up from 27.22p to 41.27p in April.

As Carolyn says, the standing charge is part of the cap, and domestic bills.

Put simply, it is a charge for being connected to the grid. It is different depending on where you live in the country.

It is also where some other costs are placed. For example, it covered some of the cost of failing suppliers.

This time around there is not a large increase in standing charges, but they haven’t fallen either.

What about people who have oil central heating?published at 13:27 British Summer Time 26 August 2022

13:27 BST 26 August 2022

Iona Bain
Broadcaster and financial journalist

Debbie Johnson, from Whipsnade, says her oil has gone up from 27p per litre to almost £1 and asks whether the government is doing anything to help people who have oil central heating.

Unfortunately, the energy price cap doesn’t cover homes heated by oil, nor is it likely to. That means even steeper price rises for those off the gas grid.

The government is looking at ways to try and ensure these households get the £400 energy discount it unveiled earlier this year.

In the meantime, you might be able to get a fuel voucher if you’re reaching the state where you can’t afford fuel. Contact Citizens Advice, as they will need to apply for this on your behalf.

How are energy prices set?published at 13:21 British Summer Time 26 August 2022

13:21 BST 26 August 2022

Kevin Peachey
Personal finance correspondent

The first question to our personal finance correspondent Kevin Peachey comes from Peter H Williams, who asks: How are energy prices set?

For the vast majority of us – 24 million households in England, Wales and Scotland – this is based on the price cap set by regulator Ofgem.

Remember, this is a cap on each unit of gas and electricity, not the total bill.

Ofgem decides on the cap based on various elements including the wholesale price of gas, which is paid by suppliers.

That’s been rising owing to higher global demand after the pandemic and, primarily, the impact of the war in Ukraine.

In normal times, suppliers would compete for customers by offering cheaper fixed deals, but these are not normal times.

Energy cap: Your questions answeredpublished at 13:17 British Summer Time 26 August 2022

13:17 BST 26 August 2022

Thanks for sending us your questions about today's energy cap rise and how it will affect your finances. Keep them coming.

In the next few minutes, our personal finance correspondent Kevin Peachey and financial journalist Iona Bain will be here to shed some light on the energy crisis.

Stay with us.

Oliver Smith
Senior business producer, BBC News

“The winter looks terrifying”, says chief executive of Ipswich Citizens Advice Nicky Willshere, whose seen a 70% increase in requests for help in recent months.

“The heating is off now because it’s the summer, but I’m speaking to people who are worried they won’t be able to switch it back on again when they need to in the winter months.”

Nicky says she’s particularly worried about people in work, who’s earnings mean they don’t qualify for certain benefits.

“We’re seeing people who are middle earners who are already finding it hard to make ends meet and who are going to be hit even harder. They’re looking for what government help is available to them, of which they qualify for very little.”

She says their winter support campaign usually finishes in March but was running all year round.

So are they running out of tools to help people? “The short answer is yes,” says Nicky, adding that the £400 grant for all bill payers will be a “drop in the ocean” if energy prices double, but she stresses that people should still seek advice.

“My message is, don’t worry alone. The options are minimal but there is help out there,” she says.

Image source, .

Chancellor Nadhim Zahawi says we should all "look at our energy consumption" but "more help is on its way" for people struggling with energy bills.

He says the government knows that the help offered so far was "not enough" and that it had to "do more".

He adds: "It is a difficult time, there is war on our continent. Very few people anticipated war; wars happen in far flung places. It is now here with us, we have to remain resilient."

David Brown & Robert Cuffe
BBC News Visual Journalism

The price cap is not a cap on every bill. It’s a cap on the charge per unit of energy.

Use less (or more) energy than the average household and your bill will be lower (or even higher) than the headline £3,549 figure.

Image source, .

About a quarter of low-energy users, for example living in flats or one-bedroom houses, might expect today’s announcement to translate into a cap for them of around £2,400.

The headline figure we’re talking about today is what the average household, with two or three people living in a three-bed house, might see: just over £3,500.

But the highest energy users, say people living a five-bedroom house with four or five people, would expect a bill of around £5,000 pounds.

About a quarter of households on the price cap can expect to see bills that high based on today’s announcement.

Of course, these households we’ve described are just illustrations – a lot depends on your insulation, your energy mix and how often you turn the heating on.

And with bills predicted to rise even further as we move into the coldest portion of the year, the worry is exactly how often people will be able to afford to do just that.

Emily McGarvey
BBC News Live, reporting from Ipswich

Amanda Phillips, owner of Picwicks coffee and tea house in Ipswich is concerned about the impact of rising energy costs on her business.

“Especially in a business like this, I’m worried about the winter months because we won’t be able to use the outside space and heating the inside - it’s a big concern," she says.

“I’ve been trying to block it out because I know it’s ahead of me in October, you know it’s coming.

“I’ve got a household at home that I’ve got to heat and I’ve got one here that uses a lot of energy every single day.

“A lot of businesses are going to end up not being able to carry on, it’s just not feasible. I just hope we’ll have mild winter.”

Emily McGarvey
Reporting from Ipswich

I’m reporting from Ipswich today to get local reaction to the energy price cap rise announcement and what it means for businesses and residents who are facing the cost-of-living crisis.

We’ve already heard from people at the Royal Oak cafe in Ipswich, run by the Emmaus Suffolk charity, who are feeling anxious about the staggering rise in energy costs.

I’ll be speaking to local businesses and residents of the town to hear what the price rise means for them. Stay with us for updates.

Image source, PA Media

Sir Keir Starmer has said it is "absolutely unforgivable" that the government is "missing in action" during the cost-of-living crisis.

The Labour Party leader asked Prime Minister Boris Johnson "where are you?" as it was announced on Friday that the energy price cap will rise to £3,549 a year.

He told reporters: "I do think the government has to take responsibility in a situation like this.

"But on the cost of living crisis you've got a prime minister who insisted on staying in office, recognises there's a problem with energy prices, shrugs his shoulders and does nothing about it.

"You've got two leadership candidates who are fighting with each other about how appalling they have been in government, but neither has come up with any plan to deal with this problem. Unforgivable."

He added: "My challenge for the government is: where are you?"

While Tory leadership contenders Rishi Sunak and Liz Truss are being criticised this morning by Money Saving Expert's Martin Lewis for a lack of detailed plans, Sir Keir says Labour "has a fully costed plan to freeze energy bills this winter".

"We'll pay for that with a windfall tax on those unexpected profits [of oil and gas companies]", he said in a video he tweeted this morning.