Low pay means “price cap day” is feared by Ofgem employees

“Price cap day” is the day when the energy regulator, Ofgem, announces the energy price cap for the following three months as it has done today. This sets the maximum amount energy suppliers can charge as standing charges and for each unit of energy.

Since the 2022 energy crisis, workers across the country on low or even median pay have grown to fear the uncertainty of this day, with its ratchet of prices going up and up year on year, above the general rate of inflation – and far above the rate of wage growth.

Ofgem’s own employees are no different. Not only are pay bands within Ofgem nearly 20% below those of the department responsible for it (DESNZ), Ofgem’s lowest paid workers earn 20% below the median wage for the country as a whole. They are in the bottom 20% of all earners.

Ofgem’s failure to address its pay problems mean its own employees have to choose between heating and eating. As one member told us: “Every time these changes happen it causes us so much worry with the uncertainty. I work for Ofgem and the pay they give us makes us so vulnerable. It’s like we get a double hit from Ofgem. Higher bills the same as everyone but lower pay as well. It’s just not right.”

This is one of the reasons that PCS members in Ofgem are balloting for strike action. The ballot opened on 1 May and closes on 12 June.

PCS General Secretary Fran Heathcote said: “A lower price cap for now is welcome but we need controls that actually bring prices down permanently to protect all working people and Ofgem itself can and should get its house in order before then. Instead of tinkering around the edges of its broken pay system, Ofgem needs to reach agreement with us on a plan to solve all of its pay problems for all of its people.”