Ofgem have announced that they will reduce the maximum amount of money energy companies are allowed to charge British households on the 1st of April, but bills are still set to rise.

The energy regulator is set to reduce the cap to £3,280, because wholesale energy prices have fallen. However, bills are still set to rise an estimated 20%, which will amount to £500 a year (or about £125 per student in a standard house of four).

The Ofgem chief executive said, a social tariff which offers lower energy prices for vulnerable customers should be “urgently examined,” but no plan is yet in place that could aid people who are struggling with their energy bills.