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Navigating the Upcoming Energy Price Cap Hike: A Personal Perspective

Paul Francis
Nov 27, 2023
2 min read

I recently received an email claiming to be from the UK government, promising a £400 boost for my gas and electric bills. This of course, was a scam email asking me to enter my details to get the government rebate. I didn't fall for it, but it made me ponder the real issues at hand, specifically the impending rise in the energy price cap set to hit many households in January 2024.

As we brace ourselves for colder temperatures, Ofgem, the energy regulator, has declared an average annual household bill increase from £1,834 to £1,928 – a rise of £94 or 5%. In a world where we're constantly adapting to economic shifts, this news hits hard, especially for those already facing financial challenges.

The surge is attributed to higher wholesale costs faced by suppliers. Analysts speculate that prices might ease back in March, but for now, consumers must prepare for a winter with added financial strain.

From January onwards, the gas price will be 7p per kWh, and electricity will be 29p per kWh. For those on prepayment meters, the typical annual bill will rise to £1,960, while quarterly cash or chequepayers will face a typical annual bill of £2,058. Standing charges, however, will remain unchanged.

A phone screen showing both gas and electric usage

This price hike is concerning, especially as winter approaches. Many households are reevaluating their budgets and looking for ways to cope with the increase. One option is to explore the variety of fixed deals on the market, although Ofgem advises caution when navigating these options. I was lucky, and last June I managed to enter a fixed-rate tariff with British Gas. But the implication that this could continue past my term time is worrying.

The freezing of standing charges, amid increasing fees, adds another layer of complexity to the situation. Ofgem is currently reviewing these charges, reflecting the rising frustration among consumers about fees and the seeming inability to control costs.

Last winter, support was offered through the Energy Price Guarantee, limiting typical bills to £2,500, along with a £400 support scheme for each household. This year, however, at the time of writing, no equivalent scheme has been announced, leaving many households anxious about the financial burden of the upcoming winter.

As households are in debt to suppliers by a staggering £2.6 billion, it's clear that more needs to be done. The government's recent moves to increase pensions and benefits provide some relief, but the absence of additional direct support is palpable.

The energy landscape is undeniably challenging, and as we face these uncertainties, it's crucial to stay informed, explore available options, and collectively voice our concerns. The road ahead may be tough, but with resilience and unity, we can navigate through these challenges.

Stay warm and take care.

The End of the Safety Net: Why Slashing Farm Subsidies Could Threaten the UK’s Food Future

All Articles

16 April 2025

Paul Francis

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Not only do UK farmers now face the looming threat of inheritance tax reforms that could force centuries-old family farms to be sold off - but they’re also contending with a policy shift that dismantles the very foundation of their economic stability: the withdrawal of direct farm subsidies.

A black-and-white cow grazes on a lush, green field with a dense forest in the background. The scene is peaceful and natural.

In a time of global instability - wars in Europe and the Middle East, disrupted trade routes, volatile commodity markets - the UK government is removing financial safeguards that have underpinned British agriculture for decades. And it’s doing so faster than many in the industry can adapt.

The Basic Payment Scheme (BPS), a direct subsidy paid to farmers under the EU’s Common Agricultural Policy (CAP), is in its final years. By 2027, it will be completely gone. In its place: a complex, tiered system of environmental schemes under the umbrella of the Environmental Land Management Schemes (ELMS). Worthy in theory, but in practice? A mess of bureaucracy, delays, and shortfalls.

And the timing couldn’t be worse.

A Lifeline Cut-Off Before the Bridge Was Built

The BPS wasn’t perfect, but it provided one essential function - it kept farms afloat. Payments were calculated based on the amount of land farmed, offering predictability and a cashflow buffer that allowed British farms to invest in new equipment, manage seasonal fluctuations, and ride out the weather, both literal and economic.

Now, payments have been rapidly reduced. By 2024, many farmers had already lost 35%–50% of their BPS income. In 2025, a new cap of £7,200 per farm will apply. That’s a fraction of the £20,000 to £50,000 mid-size farms previously received.

The replacement - ELMS - promises payments for "public goods": improving soil health, reducing carbon emissions, boosting biodiversity. Laudable aims. But ask most farmers, and they’ll tell you: they don’t object to sustainability. What they object to is the speed and scale of the transition, and the fact that the new payments often don’t come close to replacing what’s being lost.

Environmental Schemes: Aspirations Without Infrastructure

At the core of ELMS are three tiers:

Sustainable Farming Incentive (SFI): Encourages low-level changes such as herbal leys, no-till farming, and reducing fertiliser use.
Local Nature Recovery: Pays for habitat restoration and targeted environmental actions.
Landscape Recovery: Funds large-scale, long-term ecosystem restoration, often in collaboration with multiple landowners.

But uptake has been patchy at best. As of late 2024, fewer than half of eligible farms had enrolled in any ELMS scheme. Why?

The schemes are confusing. Farmers must navigate different options, overlapping rules, and constant revisions.
The application process is time-consuming and opaque.
Payments under SFI are often insufficient, especially for mixed or livestock farms in upland areas where land-use change is more difficult.
Crucially, many tenanted farmers - nearly a third of all farms in England - face legal and logistical barriers to taking part.

DEFRA has promised streamlining. But meanwhile, farmers are left in limbo - without clear income streams, but still expected to feed the nation.

The Cost of Poor Policy Timing

Agricultural experts, rural economists, and even major retailers have raised alarm bells. In a scathing 2023 report, the National Audit Office warned that DEFRA had failed to communicate the changes effectively, leaving many in the dark about what the new schemes offer.

The NFU (National Farmers’ Union) has repeatedly called on the government to pause BPS cuts until ELMS is fully functioning, but those calls have largely been ignored. In late 2024, a coalition of MPs from all parties demanded a review, warning that this abrupt withdrawal of support could lead to an exodus from the industry.

And that’s not just a theoretical risk. A nationwide NFU survey found that 11% of farmers were considering leaving farming altogether due to the combined impact of reduced subsidies, labour shortages, and rising costs.

Food Security in an Uncertain World

This isn’t just a farming problem - it’s a national one.

The UK is already heavily reliant on imports for key food items. And with international trade routes threatened by conflict in Ukraine, instability in the Middle East, and shipping disruptions in the Red Sea, supply chains are becoming more fragile by the month.

Should we really be cutting back our domestic food production capacity now?

Government ambitions to rewild 10% of farmland, promote biodiversity, and shift toward carbon sequestration may look good on a whiteboard in Whitehall. But on the ground, it’s leading to reduced livestock numbers, lower domestic output, and a growing dependence on foreign markets that may not be as reliable as once assumed.

A Dangerous Gamble

To many farmers, this feels like an ideological experiment being conducted in real-time -with their livelihoods and our food supply on the line. And as supermarket CEOs and farming groups increasingly speak out, it’s clear this isn’t just grumbling from the shires. It’s a cry of alarm from the foundation of the UK’s food system.

Environmental ambition is important. Climate change is real. But so is hunger.

We can pursue sustainability - but not by pulling the rug out from under those who feed us. The government’s subsidy reform may have noble aims, but its execution is flawed, its timeline reckless, and its consequences potentially devastating.

If we want a resilient, secure food future, we must support the people who make it possible - not push them to the brink.