00:01It's difficult for people, and I recognise that, but it's why, within days of taking
00:06office, I announced that we would remove VAT off electricity bills to give people that
00:12little bit of help. That kicks in from October. We know the price cap will have an impact,
00:18but it is what we can do right now, and we'll continue to look as we go forward at how
00:23we
00:23get energy prices down in the long term, and that's what we need to do too.
00:28Ofgem's energy price cap is set to rise by 4% from October 2026. The possibility of higher
00:36energy bills arrives as households move into the colder months, when heating can become one
00:41of the biggest pressures on a household budget. What each household actually pays depends on
00:47how much gas and electricity it uses and which tariff it is on. That means that there are
00:53several things people can check before winter demand increases. With households expected to spend
00:59around an extra £60 a year on their energy bills, here is consumer expert Vix Layton, as she gives
01:05practical advice on ways households can reduce their energy costs as the October price cap increase
01:11approaches. The first and most important thing, check your tariff. Fixed deals are available that
01:15are currently under the new cap, so compare your unit rates, your standing charges and your exit fees,
01:19rather than just sticking with your current supplier out of habit. It takes a few minutes and it'll make
01:23a huge difference. Secondly, use your smart feeder effectively if you have one. Some tariffs offer
01:28cheaper electricity at off-peak time, so shifting things like washing, dishwashing and charging to a
01:32different time zone can shave pounds off that final bill. Thirdly, take a look at your heating
01:36before winter hits. Gas is doing most of the heavy lifting in this price rise, so check your boiler
01:40settings now, check your heating schedules and make sure you're not warming empty rooms for absolutely
01:44no reason. Fourthly, the easy stuff. Do not keep lights on in empty rooms, do not leave appliances
01:50on standby, don't leave them running, do not tumble dry where things could air dry and use some old
01:55school methods like draft excluders. And finally, if you are already struggling, please talk to your
02:00provider before you fall behind. They have things that they can help you with, there is support available,
02:04don't leave it until it's too late, don't worry about it, they deal with this every day. The key
02:08thing is to treat the price cap not like a guaranteed low price guarantee but just as a threshold. So
02:14always shop around, always do your homework and you can take pounds off your energy bill. Around 35%
02:20of households, about 11 million, are on fixed tariffs, so their prices will not change as a result of the
02:27October price cap increase. For the 22 million households in England, Wales and Scotland whose tariffs are
02:33affected, the cap will rise by around £60 a year, which is about £5 a month, if the new rates
02:40were
02:40sustained for a full year. Ofgem has also changed the amount of energy it considers typical households
02:46to use. The new figures are 9,500 kilowatt hours of gas and 2,500 kilowatt hours of electricity a
02:55year.
02:56A household using less will generally pay less, while a household using more will pay more.
03:01Fix Radio lead presenter Clive Holland gives practical advice on keeping homes warm during
03:06autumn and winter without wasting energy.
03:09First thing to think about, windows and doors. Are there any drafts? If there's drafts under your
03:14doors, nice draft excluder would go well. If it's around your windows, remember to check the seals.
03:20The seals might need updating. Again, you can get a UPVC window installer to come around or you can
03:26replace them yourselves. They're very easy to replace. Plus remember your windows and doors have
03:29got a winter setting on the cams and that will shut the doors and the windows closer to the seals,
03:35preventing those drafts. Remember your curtains as well. Keep your curtains open when it's a nice warm
03:40day. Well, not warm, but you know, sunny, keeping that warm thing to the room. But the moment the sun
03:45sets, draw those curtains together, keep that warm thing. Now, the other thing is your radiators.
03:50Silver foil, or you can get packs that will sit behind the radiator and that drives the heat forward,
03:56rather than losing it into the wall. So the other thing to remember as well is around your radiators,
04:02move your furniture out of the way, your beds and that sort of thing. Allow the warm air to penetrate
04:08around the house. Really, really important. Hopefully, there's a few little tips to keep you toasty and warm this winter.
04:16The increase in the cap has been linked to higher wholesale gas prices, with Ofgem saying those prices
04:23have been affected by the war in Iran. The government says its cut to VAT on electricity bills will save
04:29households £45. It also says the warm homes discount will take £150 off bills for 6 million
04:38households this winter. But there is disagreement over whether that is enough. Opposition parties have
04:45criticised the government and called for stronger action to reduce bills and support households facing
04:50financial pressure. Ofgem says electricity bills are falling slightly because of the VAT cut,
04:57while gas bills are rising by 8%. It says the difference could make moving from gas heating
05:03to heat pumps cheaper for some households. The immediate change comes on the 1st of October,
05:08when the new price cap takes effect.
