THE ENERGY price cap will come into place tomorrow this weekend, meaning the average household energy bill will be frozen at £2,500.
It comes as millions of Brits are being forced to sell their belongings to pay off their bills during the cost of living crisis, a shock report has found.
Which? said energy firms "can and should do more to help" after a new survey suggested 65% of households had resorted to measures such as cutting back on essentials, selling items or dipping into savings to fund the increasing costs of bills.
Read our cost of living live blog below for the latest updates....
Take a meter reading now
Millions of households are being urged to take an energy meter reading before bills rise tomorrow.
This applies to customers on traditional meters - you don't need to one if you're on a smart or pre-payment meter.
Customers are being urged to take a meter reading so they don't get overcharged for their energy usage.
If you don't submit readings to your supplier, they'll estimate your usage - which can usually be higher than what you actually use.
You could end up being charged more as a result, so by taking a meter readings, this will ensure you are billed correctly for your usage up until now ahead of the price rise.
Taking a picture of your meter reading and send it to your supplier as evidence.
Read our handy explainer on how to check your meter.
Bill payers are being warned about energy scams claiming they need to apply for their £400 bill rebate.
The Sun has seen a scam text message doing the rounds recently, stating: "GOV-UK: Due to the Energy Bill Support Scheme, you are owed £400 under the discounted energy bill."
It then urged the recipient to follow a link to apply for it.
However, it's important to know that the £400 payment will land in bank accounts automatically.
You should not give away your personal details to anyone.
If you share this kind of information with scammers, you risk having your personal details and money stolen from you.
Pound returns to same level as before mini-budget announcement
The pound returned to $1.12 against the dollar this morning, the same level the currency was at before the mini-budget announcement last week.
The news comes after official data was released today showing the UK is not in recession, as had been previously thought.
Octopus Energy are NOT paying the rebate directly into bank accounts
Octopus Energy customers will get an automatic monthly credit of £66 in October and November and then £67 between December and March.
The credit should automatically reduce customer monthly payments.
If a customer’s direct debit payment is less than £67, the firm will look to apply a payment holiday (reducing certain direct debits to £0) and credit their account with the remaining amount.
For smart prepayment customers, the discount will be added directly onto their meter as a credit.
How will British Gas pay the rebate?
Those who pay by direct debit - the vast majority of customers - will have to pay their bills as normal each month.
But they will then receive the £400 discount as direct payments into their bank account, spread across the six-month period.
Those with bills less than the monthly refund will get the money refunded and the remaining amount added to their account.
So that means if your direct debit is £50 in October and November, when the rebate is worth £66, £50 will be refunded to your bank account and the remaining £16 will be applied to your energy account.
Members of the OBR leave Downing Street
Members of the Office for Budget Responsibility have just been spotted leaving No 11 Downing Street.
The meeting between the Prime Minister Liz Truss and Chancellor Kwasi Kwarteng lasted 45 minutes and they aimed to discuss the economic turmoil after last week's mini-budget.
You can get free debt advice
If you're in debt there are plenty of services you can take advantage of and they offer free advice on how to manage debt.
Most of them can offer you free guidance and help in person, over the telephone or online.
Liz Truss set to meet with OBR budget responsibility committee
Members of the OBR's budget responsibility committee have arrived at Number 11 Downing Street at 9.45am on Friday.
Liz Truss and Kwasi Kwarteng are set to meet with Richard Hughes, Andy King and Professor David Miles CBE in the next hour, after a week of harsh economic turmoil following last week's mini-budget.
What's the average costs for those who don't pay by direct debit?
A typical household that doesn't pay their bills by direct debit will see costs rise to £2,740 from October 1, based off the following average rates:
- 11.12p per killowatt hour (p/kWh) for gas
- 36.80p/kWh for electricity
- A standing charge of 33.54p per day for gas
- A standing charge of 52.40p per day for electricity
What's the average costs for those who pay by direct debit?
From October, a typical household will pay the unit rates and standing charges below but check with your energy supplier as the figures may slightly differ.
A typical household will pay £2,500 a year from October if they pay the following rates:
- 10.33p per killowatt hour (p/kWh) for gas
- 34.04p/kWh for electricity
- A standing charge of 28.49p per day for gas
- A standing charge of 46.36p per day for electricity
New Energy Price Guarantee starts tomorrow
The new Energy Price Guarantee (EPG) will save the average household £1,000 over the next year.
The EPG puts a cap on the wholesale cost of domestic gas and electricity for those on the standard variable tariff.
The cap should mean that the average household pays no more than £2,500 a year.
But the cap only limits the amount firms can charge customers for each unit of energy.
So if you use more energy than the average household - expect to pay more than £2,500 a year.
'Urgent action is needed'
LIZ Truss has been told to focus on the levelling up agenda to ensure the north-south divide narrows, northern Tory MPs say.
Tory MP Kevin Hollinrake added: “Urgent action is needed to help encourage private sector investment into our northern towns and cities.
“Reforming business rates is one such lever which the Government could pull to breathe new life into our local communities.”
Energy bill hike tomorrow
Energy bills will jump from £1,971 to £2,500 a year for the typical household from October 1 under the government's energy price guarantee.
It has been put in place to freeze energy bills for two years, which were set to rocket to £3,549 this winter.
It will save households £1,000, the government claims.
The energy price guarantee replaces the energy price cap, which is reviewed by Ofgem.
The energy regulator was set to review the price cap twice as often - which would have seen energy price rises passed onto customers faster - before the government replaced it with the energy price guarantee.
Be sure to turn off ‘vampire appliances’
So-called “vampire appliances” drain energy when left on standby or when used inefficiently – such as a TV and extra fridges.
Desktop computers and electric towel rails are among some of the worst offenders – they could be adding up to £500 onto your yearly costs.
Turn them off correctly – by switching them off at the plug and NOT via the standby button – to avoid a big bill sting.
Top tips to reduce bills
The pros from NetVoucherCodes.co.uk are sharing their top tips on how to reduce heat loss in the home ahead of the chilly months.
Store your items carefully
Loft wool works by trapping air in its void and by squashing it, you reduce its effectiveness. It’s best to use something like timber boards to store your items and make sure they are raised above the loft wool.
Use reflective foil behind radiators
Placing reflective foil behind radiators will reflect the heat back into the room rather than allowing it to escape through the walls and windows. If you’re looking for a quick solution, try wrapping a piece of cardboard in foil and placing it behind the radiator.
Use draught excluders
Turning off some of the radiators in rooms you don’t intend on using this winter is a great way to save money. However you’ll want to make sure no cold air from these rooms seeps through to the rest of your home.
When does the Warm Home Discount scheme start?
Millions of households are in line to get a £150 discount off their energy bills between December and March 2023 under the Warm Home Discount scheme.
You'll be sent a letter about the scheme in October if you qualify for the help.
In previous years the cash was split across four payments - giving customers a £37 discount off their bills each month from December to March.
The way in which you'll be paid this year will be confirmed by your energy supplier in due course.
You'll be eligible for the automatic discount if you received any of the following benefits up to August 21 this year:
Tip for reducing bills
Cash strapped Brits are being given advice on how improved insulation could help them save on their energy bills.
The penny pinching pros from NetVoucherCodes.co.uk are sharing their top tips on how to reduce heat loss in the home ahead of the chilly months.
They said that increase loft insulation can help reduce bills.
A quarter of a home's heating is lost through poor roof insulation. The good news is this problem is relatively easy to fix yourself. All you need to do is purchase some insulation rolls and lay down the material in your loft.
Martin Lewis gives advice to mortgage customers
Martin Lewis in moneysavingexpert.com's latest newsletter has tried to answer some of the questions mortgage lenders might have amidst the turmoil.
Standard variable mortgages are usually what borrowers are put onto after their fixed rate deal ends but interest rates on these types of mortgages can go up at any time.
Tracker mortgages are similar, but they follow the Bank of England's base rate more closely and Lewis has said it might be worth ditching your old tracker or variable mortgage deal and switching to another.
Moneysavingexpert.com's mortgage comparison tool can show you some of the rates available to you.
You can always get a new deal with your existing lender as well, known as a "product transfer".
Truss claims energy package will help reduce food prices
Speaking on BBC radio station this morning, Liz Truss said her energy package will help reduce overall inflation, which will help reduce food prices as well.
She explained: "Farmers, people that produce food, have energy going into their production so it will help reduce prices overall."
Kwasi Kwarteng had 'taken his eye off the ball'
Chancellor Kwasi Kwarteng had "taken his eye off the ball" with his mini-budget announcement, Liz Truss's external adviser on the economy has said.
Gerard Lyons told sky news that Kwasi Kwarteng failed to prepare the markets before the big announcement last week.
Mr Lyons said: "The chancellor, whilst he had focused on the general public and on British businesses, he had not really prepared the financial markets fully.
"And I think he had taken his eye off the ball slightly, shall we say, in having not prepared the markets for what he was doing in the budget and I felt that he overstepped the mark last week.
"So it was a combination of all three factors - the febrile markets because of the global backdrop, the actions of the Bank of England last Thursday, but let's be in no doubt, it was primarily the mini-budget last Friday that triggered this latest series of events."
'Millions are scared'
Lib Dems leader Ed Davey has called for the Conservative Party to cancel their conference next week to "calm" the situation as "millions are scared".
He told the BBC: "The government has got to calm the situation, it's got to reverse the huge mistakes it made last Friday.
"There are millions of people now who are scared, they're terrified about what's happening.
"This is a crisis of the government's making."
Take meter readings now
Millions of households have been urged to take meter readings today ahead of the price rises this week.
If you don't send regular meter readings to your supplier, they will charge you an estimated cost, which could see you paying too much.
However, millions of households will be receiving a £400 energy rebate off their bills from October to March 2023.
How much does your TV cost to run?
As costs continue to rise, something as simple as running a TV can add a lot to your bills.
So, how much does your TV cost to run?
Click here to read more.