May 2025 – Page 2 – AbellMoney

Job applications: the truth, the whole truth, and nothing but the trut …

What can dishonesty mean in the context of a job application, and how should employers deal with it?
The Employment Appeal Tribunal (EAT) recently upheld the decision of the Employment Tribunal (ET) in the case of Easton v Secretary of State for the Home Department (Border Force), finding that an employee was fairly dismissed when he failed to include relevant and material employment history details in his application form. This constituted gross misconduct, and his dismissal was found to be within the “band of reasonable responses”.
Case background
Mr Easton worked for the Home Office from 2002 until 2016. He was dismissed on 13 June 2016 for gross misconduct involving inappropriate behaviour towards females and temper issues. This resulted in a subsequent three-month employment gap. He then started working with the Department for Work and Pensions (DWP) on 4 September 2016.
Mr Easton later applied for a role in the Border Force (part of the Home Office). Under the “Employment History” section of the application form, he presented himself as working for the Home Office from “2002 – 2016” and the DWP from “2016 to current”. Mr Easton did not divulge his dismissal or the employment gap in the application form or at the interview stage. His employment gap and dismissal were concealed by misleadingly presenting his employment history. The application form contained a checkbox whereby Mr Easton confirmed that he understood that he may be subject to disciplinary action or rejected if he provided false information or withheld relevant details.
Mr Easton re-joined the Home Office as part of the Border Force. A disciplinary investigation commenced after Mr Easton’s dismissal came to light. Following the investigation, he was dismissed for gross misconduct due to his failure to disclose relevant and material information regarding his earlier dismissal and for concealing a period of unemployment. Mr Easton unsuccessfully appealed the decision and then brought an Employment Tribunal claim.
Employment Tribunal
The ET held that Mr Easton had not been unfairly dismissed. The dismissal was fair for the potentially fair reason of misconduct, as he failed to disclose relevant and material information on his application form. The employer had behaved within the band of reasonable responses that a reasonable employer in those circumstances would have reached, especially given the nature of the organisation, Mr Easton’s role and the misconduct. The ET also held that the procedure followed was “thorough” and “more than reasonable”.
Employment Appeal Tribunal
The EAT dismissed Mr Easton’s appeal. Using years only for his employment history obscured his previous dismissal and subsequent employment gap. The ET was entitled to find that his employer had reasonable grounds to believe that the decision to present information in such a way had been dishonest.
A reasonable job applicant faced with a blank box headed “Employment History” would have understood that the information had to be presented in a way that would reveal any employment gaps. The ET found that Mr Easton understood that dismissals and unemployment in the previous three years would be relevant and material information for a job application. Significantly, Mr Easton confirmed his understanding of its relevance during cross-examination.
The EAT held that the ET took the correct approach of reviewing the employer’s process and concluding that it was open to the employer to find that Mr Easton’s decision to withhold that information was deliberate and dishonest.
Lessons for employers

Ensure you conduct thorough pre-employment checks. Job application forms should explicitly request an applicant’s full employment history, including exact dates of roles, and request any employment gaps and reasons for leaving previous roles.

Ensure you review and verify employment history. An application form should not be seen as a tick-box exercise. Employers should verify employment history and investigate any concerns before making recruitment decisions.

Correct procedure is key. A fair and thorough investigation, disciplinary and appeal process, is essential. Employers should bear this in mind before deciding to dismiss, given that the investigation will be relevant when determining whether such a decision falls within the band of reasonable responses. Employers should also ensure their procedures and decisions are consistent.

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Job applications: the truth, the whole truth, and nothing but the truth

Cambridge warns UK must scale up investment to turn spin-outs into glo …

University of Cambridge leaders have issued a stark warning that the UK risks falling behind in the race to commercialise world-class research unless it does more to support academic spin-out companies struggling to scale.
Speaking at a London showcase of Cambridge’s most promising spin-outs, university figures and venture capitalists said that while Britain remains a hub of scientific excellence, it lacks the investment firepower and infrastructure needed to turn breakthrough research into category-defining global businesses.
“The world isn’t waiting for UK and European science to commercialise,” said Gerard Grech (pictured), managing director of Founders, a Cambridge initiative to boost entrepreneurial growth. “Founders in Silicon Valley, Shenzhen and Bangalore are already building, and very, very quickly. The question is: can European universities match that pace without losing the depth that makes our research world-class?”
Grech said that many of the best commercial opportunities emerge when university science interacts with bold capital, adding: “This is where real innovation happens.”
Cambridge’s vice-chancellor, Deborah Prentice, highlighted the university’s strong track record in spin-out formation. Last year, Cambridge spin-outs raised more than $2 billion, and the institution now produces more spin-outs per capita than any other UK university.
“Cambridge is by many measures the highest-performing innovation ecosystem in Europe,” she said. “International investors, large companies and world-class scientists are recognising that we’re punching above our weight — but we need to go further.”
However, the ability to grow these ventures into globally competitive firms remains a major hurdle. Data from Dealroom cited during the event showed that while Cambridge has a healthy pipeline of start-ups with up to $10 million in venture capital, the number of firms that go on to raise $100 million or more remains significantly lower than in Silicon Valley.
“That is the problem. It is as simple as that,” said Suranga Chandratillake, general partner at Balderton Capital. “You can build so much of a business with $10 million, $20 million, or $30 million. But you need hundreds of millions to build truly global, category-defining companies. And we just don’t have enough companies raising that kind of money.”
The showcase featured pitches from several early-stage, high-impact ventures looking to address complex medical problems. Prodromic, for example, is developing predictive diagnostics that could detect the early onset of brain diseases like dementia. Gastrobody Therapeutics is working on ingestible, stable antibodies for treating gastrointestinal diseases such as Crohn’s, potentially eliminating the need for injections.
Such innovations demonstrate the commercial potential sitting within UK universities, but investors and academics alike warned that unless Britain finds a way to provide follow-on capital at scale, these businesses may never realise their full potential — or may end up relocating abroad.
The message from Cambridge was clear: if the UK wants to turn scientific leadership into economic leadership, it must urgently improve its ability to fund, grow and retain its most promising ventures.
With international capital accelerating elsewhere, and breakthrough research already happening on British soil, the missing piece is not invention — it’s investment at scale.
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Cambridge warns UK must scale up investment to turn spin-outs into global success stories

Oxford Brain Diagnostics to roll out revolutionary dementia technology …

Oxford Brain Diagnostics (OBD) is preparing to launch its groundbreaking technology for the early diagnosis of dementia across the UK and US healthcare markets, following a wave of key regulatory approvals that mark a major milestone in the company’s growth.
Backed by growth capital investor BGF, the Oxford-based medtech firm will begin commercial deployment of its patented Cortical Disarray Measurement (CDM) software — a novel tool that can objectively measure neurodegeneration using standard MRI scans. By enabling earlier and more accurate assessments of brain health, the technology is poised to transform how conditions like Alzheimer’s are diagnosed and monitored.
The roll-out follows successful FDA 510(k) clearance and UKCA self-certification, which together provide the regulatory green light for entry into two of the world’s most significant healthcare markets. The company now aims to expand into hospitals, clinics and clinical research organisations that urgently need non-invasive, precision diagnostic tools.
“Neurodegenerative diseases represent a growing public health challenge,” said Dr Steven Chance, CEO and co-founder of OBD. “The support from BGF and our other partners has been instrumental in taking CDM from the lab to the clinic. We’re now in a position to bring hope to millions seeking clarity on their brain health.”
OBD was co-founded in 2019 by Dr Chance, a former Associate Professor of Neuroscience at Oxford University, and Professor Mark Jenkinson, an expert in neuroimaging. The CDM platform builds on decades of scientific research into the structural changes in the brain associated with Alzheimer’s and other neurodegenerative conditions.
The company gained early validation in 2020 when the US Food and Drug Administration (FDA) granted CDM Breakthrough Device Designation, recognising the tool’s potential in identifying early-stage Alzheimer’s in adults.
OBD’s commercial progress has been powered by a multi-million pound funding round in 2023, led by BGF, the UK and Ireland’s most active growth capital investor. Continued support also came from existing backers, including the Oxford Technology & Innovations Fund (OTIF).
“OBD’s progress over the past two years has been remarkable,” said Maggy Lau, investor at BGF. “The technology is truly differentiated, and its recent regulatory achievements show just how close it is to making a major impact. We’re proud to back a company tackling one of the most urgent and important challenges in healthcare today.”
The company has already begun forging strategic partnerships with pharmaceutical firms, helping to support clinical trials and drug development by offering a reliable and scalable method for evaluating patients. As new Alzheimer’s treatments emerge, demand for accurate diagnostic tools is expected to surge — a gap OBD is now well placed to fill.
While CDM’s initial focus is on Alzheimer’s, its broader applications are already being explored. Early studies show potential in diagnosing and tracking other neurodegenerative diseases, including Parkinson’s Disease and Multiple Sclerosis.
With global dementia cases expected to double every 20 years, the need for early and accurate diagnostics has never been more pressing. OBD’s breakthrough signals a shift in how brain health can be evaluated, tracked and ultimately treated, moving beyond symptoms to deliver data-driven, proactive care.
As the UK and US roll-outs begin, OBD’s platform could soon become a central tool in both clinical settings and pharmaceutical pipelines, offering a new lens through which neurodegeneration can be understood — and tackled.
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Oxford Brain Diagnostics to roll out revolutionary dementia technology following UK and US regulatory approvals

The Clarkson Effect: how Clarkson’s Farm is driving a boom in Britis …

Jeremy Clarkson, once feared by car manufacturers for his savage TV reviews, is now being hailed by British farmers for helping drive a surge in demand for homegrown food.
According to Waitrose, the latest series of Clarkson’s Farm is fuelling a spike in sales of British-grown produce, as viewers rally behind UK agriculture.
Launched on Prime Video, the show’s fourth season premiered on Friday and has already made its mark at the tills. Waitrose reported significant sales increases across a range of local items: thick-cut British sirloin steak is up 193% year-on-year, Jersey Royal new potatoes up 89%, and red Leicester cheese up 50%. Even Cox and Gala apples are enjoying a revival, with sales up 52% and 30% respectively. Early season British asparagus is also proving popular, up 25%.
“Farming shows are doing more than just entertaining us,” said Jake Pickering, head of agriculture at Waitrose. “They’re making the public stop and think about British farming, the people behind it and the challenges they face.”
Clarkson’s Farm has resonated with viewers by showing the reality of modern farming—from bureaucratic battles with environmental regulations to the unpredictable economics of crop production. While Clarkson’s tone is often combative, his stories have had a humanising effect on the public perception of UK farmers.
The impact isn’t limited to viewers at home. The “farm-to-fork” movement is picking up pace in restaurants and online too. Chefs and food influencers such as Julius Roberts and Seb Graus regularly promote seasonal, British-sourced recipes to audiences of over a million followers, helping to boost awareness and demand for local produce.
Clarkson’s on-screen frustration with flea beetle-infested oilseed rape, hedgerow restrictions, soil management rules, and the “badger police” has provided viewers with a more grounded, if at times exasperated, take on farm life.
“People think farming is about caring for the land,” Clarkson told The Sunday Times in 2023. “But it’s mainly about filling in forms… or dealing with the soil police and the badger police.”
This mix of humour, hardship and real-world red tape has struck a chord. Ian Farrant, a fourth-generation beef farmer from Herefordshire, praised the programme’s honesty.
“Before Clarkson’s Farm, you only saw two extremes of farming on TV — the quaint smallholder with rare breeds, or the factory farm exposé,” he said. “Clarkson’s Farm shows the reality for most of us: small, family-run businesses trying to stay afloat.”
Retailers are noticing a broader shift. Emilie Wolfman, a trends expert at Waitrose, says customers are becoming more deliberate in their choices.
“We’re seeing a genuine shift in how people shop and more people wanting to connect to where their food comes from,” she said.
Restaurants are also tapping into the sentiment. Stevie Parle’s new restaurant, Town, in Covent Garden, is dedicated to using sustainable British ingredients, with dishes like potato bread with wild-farmed beef dripping on the menu.
Meanwhile, the farm-to-fork ethos is being reinforced by campaigns across social media and in retail, helping to bring the narrative of British farming into urban kitchens.
For an industry grappling with labour shortages, policy uncertainty and price volatility, Clarkson’s influence has provided a welcome morale boost. The fact that a reality TV series — anchored by a former Top Gear host — has driven real economic uplift in the agriculture sector speaks to the power of storytelling in shaping public attitudes.
And Clarkson himself? Characteristically wry, but quietly pleased.
“That makes me all warm and fuzzy,” he said, when told about the sales impact. “Long may it continue.”
From car critic to countryside advocate, Clarkson’s latest legacy may be his most unexpected yet: rekindling Britain’s connection to its farmers, one field at a time.
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The Clarkson Effect: how Clarkson’s Farm is driving a boom in British produce

Taxpayer support for Sheffield Forgemasters hits £400m just 3.5 years …

British taxpayers have injected more than £400 million into Sheffield Forgemasters, the historic steelmaker and defence contractor, just three and a half years after the company was brought into public ownership — burning through a decade’s worth of planned investment in record time.
The Ministry of Defence confirmed this weekend that a total of £403 million in state aid has now been funnelled into the lossmaking company since Boris Johnson’s government nationalised it in August 2021. The sum was originally intended to be spread over ten years to 2031, but has been fully allocated in little more than a third of that time — averaging £300,000 a day, or £169,000 a year for each of the company’s 640 employees.
Despite the mounting costs, the MoD has staunchly defended the investment, calling Forgemasters a “shining light of UK industry” and pointing to the firm’s critical role in national defence, particularly in supporting the UK and Australia’s SSN-AUKUS nuclear submarine programme.
Forgemasters, based in Sheffield, produces high-grade cast steel components used in nuclear-powered submarines, including parts for nuclear-grade defence systems that no other UK company can supply. The firm was acquired by the government in 2021 after a long period of financial turmoil and a failed attempt by a Chinese state-owned firm to purchase it in 2015 — a deal ultimately blocked over national security concerns.
At the time of nationalisation, Johnson’s government argued the buyout was “the best value for money for the taxpayer due to the unique capabilities and circumstances” of the firm.
However, Forgemasters has continued to operate at a loss, posting pre-tax losses of £4 million to £5 million annually since entering public ownership. Revenues have remained flat, and the company has not returned to profitability despite the heavy government backing.
The level of state aid has surged under the new Labour administration, with £160 million invested since July 2024 alone.
Forgemasters traces its origins back to the 1750s, but the company’s modern incarnation emerged during the Thatcher era, when it was spun out of British Steel during privatisation. It has been no stranger to controversy. In 1990, it was embroiled in the so-called “supergun affair”, linked to weapons exports to Iraq. In the 2000s, it supplied rolled steel to Russian metals giant Severstal, owned by sanctioned oligarch Alexei Mordashov.
After years of decline, the company narrowly avoided bankruptcy in 2020, after a £30 million loan from Wells Fargo nearly brought the business to collapse. The government stepped in the following year with a full nationalisation package.
The MoD insists that the government’s financial support is about safeguarding vital sovereign defence capability — especially amid rising geopolitical tensions and the development of the SSN-AUKUS submarine fleet, described as the most powerful attack submarines ever operated by the Royal Navy.
“The company manufactures specialist steel parts used in critical defence programmes,” the MoD said in a statement. “This government will support Sheffield Forgemasters to improve its capacity to meet defence needs and continue to review company performance.”
Nonetheless, the extraordinary burn rate of taxpayer funds — well ahead of schedule — raises questions over the government’s oversight, financial strategy, and long-term plan for one of Britain’s most strategically important, yet financially troubled, industrial firms.
While few question the importance of Forgemasters’ work for national defence, the mounting costs will likely fuel debate over how — and how much — the taxpayer should be expected to subsidise Britain’s industrial base in the name of strategic resilience.
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Taxpayer support for Sheffield Forgemasters hits £400m just 3.5 years after nationalisation

Asda billionaire Zuber Issa backs revival of iconic British oil brand …

Zuber Issa, the billionaire entrepreneur who co-led the £6.8 billion acquisition of Asda in 2021, is investing millions in a new venture — the revival of Duckhams, a storied British motor oil brand once favoured by Formula 1 legends including Nigel Mansell and Ayrton Senna.
Issa’s investment, made independently of his brother Mohsin, is set to value Duckhams at approximately £50 million and will help propel the brand into new international markets while expanding its presence in the UK. The company, based in Bolton and employing around 100 people, is preparing for a five-year global expansion plan targeting 50 markets, up from the current 24.
“It’s great to see it back,” said Professor David Bailey, automotive industry expert at Birmingham University. “It is a brand very much intertwined with British motoring heritage and sport. It was sadly killed off as a brand under BP ownership.”
Founded in 1899 by chemist Alexander Duckham in Millwall, east London, Duckhams was once the lubricant of choice for British automotive icons including Austin, Bentley, Rolls-Royce and Rover. In 1951, the company launched Duckhams Q, Europe’s first multi-grade motor oil. It later gained global recognition through its sponsorship of Formula 1 teams, including James Hunt’s Hesketh Racing.
After being acquired by BP in 1969, the brand was heavily promoted throughout the 1970s and 1980s. However, by 2000, BP began consolidating its motor oil products under the Castrol name, and Duckhams disappeared from most markets.
The brand was quietly revived in 2016 by Jabir Sheth, another petrol forecourts entrepreneur, who acquired the Duckhams IP from BP. In doing so, he also inherited a 51% stake in a joint venture in Thailand, the only country where the Duckhams name had continued to be used.
“There were handwritten formula books dating back more than 100 years,” said Firoz Patel, executive director at Duckhams, recalling the discovery of the brand’s original archives following the relaunch.
Since its initial return to market in 2017, Duckhams has rebuilt a presence in Europe, the Middle East and Southeast Asia, including the UK, Ireland, Germany, Spain, Denmark, UAE, Qatar, Oman, Thailand, Malaysia and Singapore.
With Issa’s backing, Duckhams now plans to expand through a franchising model, working with local partners to blend and distribute oils, reducing overheads while leveraging regional expertise. The company will also target the classic car market, a space where it retains strong brand loyalty.
The strategy will be supported by increased advertising and retail distribution, with Duckhams oils set to be stocked in EG On The Move, Issa’s petrol forecourts chain. While Zuber Issa sold his stake in Asda to TDR Capital in 2024, he remains a major player in UK retail and fuel distribution.
“The investment will be used to increase brand awareness,” Patel explained. “And the focus on classic cars will help the brand reconnect with its heritage, while new distribution routes will drive growth.”
Professor Bailey said that Duckhams still holds brand equity in Commonwealth countries like Malaysia and Singapore, which gives it a competitive edge internationally.
“Its classics oil will appeal, of course, to owners of historic cars, but the firm will also need to appeal to the mass market to be successful, which will be more challenging,” he noted.
“Historically, the brand was highly innovative and linked to motorsports. Building on that will be key to relaunching the brand internationally.”
As Issa turns his attention from grocery aisles to engine bays, the revival of Duckhams could be one of the most unexpected British brand comebacks in recent years — marrying historic legacy with modern entrepreneurial ambition.
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Asda billionaire Zuber Issa backs revival of iconic British oil brand Duckhams

Record number of Americans apply for UK citizenship as Trump begins se …

A record number of Americans applied for British citizenship in the first quarter of 2025, coinciding with the start of Donald Trump’s second term as US President, according to new data from the UK Home Office.
Between January and March, 1,931 US citizens submitted applications for UK citizenship, marking the highest quarterly total since records began in 2004 and a 12% rise on the previous quarter. The surge follows a similar uptick during the final three months of 2024, which aligned with Trump’s re-election.
The figures point to growing interest among Americans in establishing long-term residence in Britain, with a record 5,500 US nationals granted settled status in 2024 — up 20% on the previous year. Settled status grants the right to live, work, and study in the UK indefinitely and can serve as a pathway to citizenship.
The last comparable spike in US-to-UK migration came in 2020, during Trump’s first term and at the height of the Covid-19 pandemic, when discontent over the US political climate, public health response, and cross-border tax burdens drove many Americans abroad.
That year also saw a record number of Americans formally renounce their US citizenship, with more than 5,800 giving up their passports in the first half of 2020 alone — nearly triple the number for all of 2019, according to figures compiled by Bambridge Accountants, a firm specialising in international tax.
“These are mainly people who already left the US and just decided they’ve had enough of everything,” said Alistair Bambridge, a partner at the firm, in a 2020 interview.
“While political and pandemic-related frustrations were key factors, the complexity of the US tax system for expats is often the final straw.”
While more Americans appear to be eyeing life in the UK and Europe, pathways to citizenship are becoming more limited. Prime Minister Keir Starmer announced last week that the government will introduce tougher requirements for legal migrants, including longer wait times before newcomers can apply for citizenship.
Meanwhile, Italy introduced new legislation this week that removes the right to citizenship through great-grandparents, closing a popular route for Americans with Italian ancestry. Italy has also tightened visa requirements for non-EU nationals in recent months, aligning with a broader European trend of stricter migration controls.
Despite the changing legal landscape, Britain’s status as a culturally familiar, English-speaking destination with strong institutions and healthcare continues to make it an attractive option for US expats seeking greater stability or a permanent move abroad.
As Trump’s second term unfolds, immigration and citizenship professionals will be watching closely to see whether this early spike in applications represents a sustained migration trend — or a short-term reaction to political uncertainty at home.
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Record number of Americans apply for UK citizenship as Trump begins second term

US investor group in talks to buy OnlyFans in deal reportedly worth up …

OnlyFans, the content subscription platform best known for its ties to the adult entertainment industry, could soon have new owners.
According to reports, a US investor group led by Los Angeles-based Forest Road Company is in talks to acquire the London-headquartered platform for up to $8 billion.
The sale would mark a significant exit for Leonid Radvinsky, the Ukrainian-American billionaire who bought a majority stake in Fenix International, OnlyFans’ parent company, in 2018. Since then, Radvinsky has reportedly claimed over $1 billion in dividends from the company, according to corporate filings.
News of the talks was first reported by Reuters, while the New York Post has also claimed that Radvinsky has been seeking to offload the business, with previous efforts hampered by the site’s close association with adult content creators. The Post estimated earlier potential valuations for a sale to be in the range of $1.46 billion to $2.42 billion, well below the reported $8 billion figure now being considered.
Founded in 2016 by London-based entrepreneur Tim Stokely, OnlyFans was originally conceived as a way for musicians, influencers, and content creators to monetise their audiences through paid subscriptions. The platform surged in popularity after lifting a brief ban on adult content, quickly becoming a hub for independent adult performers as well as high-profile figures from outside the adult industry.
Today, OnlyFans boasts over 4 million creators producing content for a global audience of 300 million subscribers, with around $6.6 billion in annual payments processed through the platform. The company employs approximately 40 staff and recently reported $1.3 billion in annual revenue in its latest UK filings.
“OnlyFans is a revolutionary platform which continues to lead the creator economy,” a company spokesperson told the New York Post. “As with any business of this scale it is natural that we are open to discussions about how we continue to build on our success.”
From niche platform to billion-dollar empire
Tim Stokely, who served as CEO until December 2021, co-founded the business alongside his father Gus. After its acquisition by Radvinsky, the platform experienced explosive growth — particularly during the pandemic — emerging as a leading player in the creator economy.
Despite its success, OnlyFans has long faced reputational challenges due to its adult content. In 2021, the platform briefly announced a ban on sexually explicit material, only to reverse the decision days later following backlash from its user base.
While some investors have been reportedly wary of the platform’s association with adult content, others see the company as a rare profitable unicorn in the creator tech space — and one with strong, recurring revenues and a lean cost base.
If completed, the sale of OnlyFans at such a valuation would represent a major milestone in the evolution of direct-to-consumer content platforms, validating their long-term viability and potential for institutional investment — despite ongoing societal and regulatory scrutiny.
Forest Road Company, which has previously backed ventures in media, sports, and entertainment, has not commented on the reported discussions.
Whether the deal materialises at the reported $8 billion price tag — or faces further hurdles — it highlights the enduring financial power of platforms that enable creators to monetise their audiences on their own terms. For OnlyFans, it could mark the start of a new chapter in its controversial but commercially compelling story.
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US investor group in talks to buy OnlyFans in deal reportedly worth up to $8bn

UK energy bills to fall by £129 from July as Ofgem cuts price cap by …

Millions of households across the UK will see some relief on their energy bills this summer, after energy regulator Ofgem announced a 7% cut to the price cap, reducing the average annual bill to £1,720 from July 1.
The £129 drop follows a sharp 6.4% rise in April, which had pushed average annual bills to £1,849. The upcoming reduction reflects a significant fall in wholesale gas prices, which Ofgem said accounted for around 90% of the cut, with the remainder due to changes in supplier operating costs.
The cap, which limits the maximum suppliers can charge per unit of gas and electricity for customers on standard variable tariffs, will apply across England, Wales and Scotland. It does not apply in Northern Ireland, which has its own energy market structure.
The fall in wholesale energy prices has been driven by a mix of geopolitical and seasonal factors, including milder spring weather, and renewed fears over global economic growth following President Trump’s recent tariff announcements.
However, analysts at Cornwall Insight warned that while further falls may follow in the next two quarters, these remain highly contingent on unpredictable variables such as weather patterns, Russia’s war in Ukraine, and global trade tensions.
Despite the price cap reduction, energy bills remain £152 higher than in July 2023, and 52% above pre-crisis levels, according to Citizens Advice. The charity estimates that nearly seven million people in the UK are behind on their energy bills, and has renewed its call for the government to introduce targeted support and home energy efficiency upgrades.
“This drop in energy prices will ease the burden for some households, but bills are still significantly higher than before the crisis,” said Dame Clare Moriarty, Chief Executive of Citizens Advice.
“The government must provide more targeted bill support and invest in upgrading five million homes with energy-saving measures.”
Tim Jarvis, Ofgem’s Director General of Markets, welcomed the reduction but acknowledged that many households continue to struggle.
“A fall in the price cap will be welcome news for consumers and reflects a reduction in the international price of wholesale gas,” he said. “However, we’re acutely aware that prices remain high.
“You don’t have to pay the price cap — better deals are out there. Shop around, talk to your supplier, and consider switching to direct debit or smart pay-as-you-go, which could save up to £136 a year.”
According to Ofgem, 35% of households are now on fixed tariffs, up from 15% last year, as more competitive deals return to the market. Consumer groups and price comparison services are encouraging households to compare tariffs and lock in savings while prices are falling.
Amid record levels of energy debt, suppliers are pressing the government to introduce a “social tariff” to protect the most financially vulnerable. Jarvis confirmed that Ofgem is “doing everything we can to support consumers today”, including developing reforms to standing charges and exploring new ways to help households trapped in debt.
“We are pushing ahead with more changes to help consumers this winter,” he said.
Introduced in 2019, the energy price cap is reviewed quarterly and is designed to protect consumers who don’t regularly switch suppliers from being overcharged on standard variable tariffs. While it has shielded many from price gouging, critics argue that more targeted support for low-income households is urgently needed to address the long-term affordability crisis.
As energy prices show tentative signs of easing, the pressure is now on both the government and regulator to ensure support reaches those most in need — and to future-proof the energy market for what could still be a volatile winter ahead.
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UK energy bills to fall by £129 from July as Ofgem cuts price cap by 7%