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Daily Mirror
Daily Mirror
National
Adam May

Energy bills activists set off flares and protest near Westminster after price cap news

Energy bills activists have set off flares and are protesting outside Parliament after the latest Ofgem price cap hike.

Millions of Brits woke up to the news this morning that their energy bills are set to soar by £1,578 a year on average.

Regulator Ofgem announced its price cap will rise to £3,549 for those on default tariffs paying by direct debit, up from the current figure of £1,971 and marking an 80 per cent increase.

Financial guru Martin Lewis has labelled the hike a catastrophe, adding that "lives will be lost" this winter if there is no intervention.

After the announcement, protestors from Don't Pay, a campaign group that claimed its activists will cancel direct debits from October 1 if they are ignored and should they gain one million pledges to do the same, gathered outside Parliament.

Millions of Brits woke up to the news this morning that their bills are set to soar by £1,578 a year on average (Getty Images)

They unfurled a banner that reads: "No one cold or hungry this winter!"

In a tweet, the group added: "Our call to the country: No one cold or hungry this winter!

"Ofgem just passed a debt and death sentence on millions - we've been left with no options but to refuse to pay.

"We can't pay, we won't pay! Strike! dontpayuk "

Around 24 million households are covered by the energy price cap, including four million on prepayment meters.

Ofgem has urged the future Prime Minister to announce further financial support. The price cap rise will typically see £750 more per year than help measures in May were based on.

And for those paying by prepayment meter, which typically affects vulnerable households or those struggling to pay for their energy, there is a bigger price jump from £2,017 to £3,608.

Meanwhile, standard credit customers will see their price cap rise from £2,100 to £3,764.

Jonathan Brearley, CEO of Ofgem, said: “The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year.

Ofgem has urged the future Prime Minister to announce further financial support to help families (Getty Images/iStockphoto)

“We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action.

“The response will need to match the scale of the crisis we have before us. With the right support in place and with regulator, government, industry and consumers working together, we can find a way through this.”

UNISON general secretary Christina McAnea described the new price cap announcement as "beyond a disaster for struggling households".

She said: "People can’t even cover basic costs right now so they’ll be feeling sick at the thought of massive energy bills heading their way.

Standard credit customers will see their price cap rise from £2,100 to £3,764 (Getty Images/iStockphoto)

"After months of inertia, ministers must wake up to the seriousness of the situation."

Chancellor of the Exchequer, Nadhim Zahawi said: "I know the energy price cap announcement this morning will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households, and £300 for all pensioners."

In terms of help available, there is a £650 payment being issued to those on means-tested benefits, including Universal Credit and Tax Credits.

There is also £150 for those on certain disability benefits, plus £300 for retirees who claim Winter Fuel Payments.

And there is also a £400 energy discount coming from October, spread out over six months.

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