Energy Bills Spike 5%: Here's How It Hits Your Wallet

Hey savvy shoppers and budgeters! Brace yourselves for a wallet hit - energy prices have just gone up by 5%!

The new price cap, set by the energy regulator Ofgem, affects households in England, Wales, and Scotland. If you're using a typical amount of gas and electricity, prepare to see your annual bill jump by £94. That's right, from £1,834 to £1,928 for direct debit users. And if you're a heavy user, it's going to cost you even more since the cap is on the unit price, not the total bill.

Here are the specifics:

- Gas is now 7p per kilowatt hour (kWh).

- Electricity has shot up to 29p per kWh.

- For prepayment meter users, the annual bill is now approximately £1,960.

- If you pay quarterly by cash or cheque, expect around £2,058 annually.

- However, standing charges haven't budged, remaining at 53p a day for electricity and 30p a day for gas.

This is a different ball game in Northern Ireland, where energy is regulated differently, and households generally pay less than the UK average.

Kevin Peachey at BBC News reported these developments, highlighting the added pressure on household budgets, especially post-Christmas. With January being a peak month for debt charities, this price hike couldn't have come at a worse time.

The government has mentioned supporting households with financial assistance and cost-of-living payments. But let's be real – it's going to be a challenging period for many.

As Tom Church, Co-Founder of LatestDeals.co.uk, observes, "The rise in energy costs is an unwelcome start to the new year, reminding us of the importance of budgeting and seeking ways to save on our bills."