£122 bank account boost for millions of households from July 1

Energy bills
-Credit: (Image: PA Wire/PA Images)


Millions of households are set to see a positive impact on their bank accounts as the Energy Price Cap is being reduced. From July 1, energy bills should drop by £122 annually, providing a much-needed relief to household incomes.

However, the speed at which families will notice the savings depends on their account type and their bill payment method.

Customers paying via direct debit may not immediately notice changes to their bills but may accumulate more credit on their accounts as gas and electricity charges decrease, which can be requested back. Ofgem is reducing the price cap to £1,568 for a typical household paying through direct debit, reports Birmingham Live.

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Energy expert Stephen Hankinson, from Electric Radiators Direct, explained: "The energy prices of households are set to reduce again from July 1 with the change of the energy price cap. This energy price cap is set to last until August 27 when a new energy price cap will be announced.

"Alongside warmer weather of the summer months and less households using the heating, households will be pleased to see a further reduction to their bills in July.

He added: "The energy price cap is essentially the Government's energy price guarantee." It is a cap on the cost of a unit of gas and electricity, with standard charges considered. This can be confused as a cap on your overall energy bills; however, this is not the case. The price of your bill will still rise or fall in line with the amount of energy you are consuming.

"The price change now means that from July 1, 2024 the energy price cap is set at £1,568, which is based on the annual electricity and gas bill of a 'typical' household who pay via direct debit. This is a reduction of £122 from the £1,690 cap set during April 1 and June 31 this year."

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