The difference between the ten cheapest energy tariffs, many of which are fixed, and the current price cap was just £11 a year as of September 2021, new research has revealed.

This is a massive change compared to September 2020, when the average difference between the best deals and the price cap limit in was £291 a year, according to data from analysts Cornwall Insight.

Today's gap is more than 25 times less than it was this time last year.

Cornwall Insight said this is the lowest level this gap has fallen to since the introduction of the price cap in January 2019.

The majority of the cheapest tariffs will be fixed deals, which are not under the price cap rules and typically the lowest price offerings. 

However, the situation is likely to worsen as the 'cheapest' tariffs are now actually becoming more expensive than the price cap, which now sits at £1,277. 

This is due to the ongoing industry crisis, as wholesale prices continue to rise, affecting both suppliers and consumers.

In September, Ofgem's price cap stood at £1,138 whilst it has since risen by £139 for 11million customers on their suppliers' default tariff. 

Prices have increased for consumers at the same time a large number of suppliers have gone bust as they can no longer pay the increased cost for wholesale gas. 

As a result, the cheapest tariff available on the market has now remained above £1,000 per year for the last six weeks.

This is a big difference comapred to earlier in the year when prices were much lower.

For example, the cheapest ten tariffs on the market in April averaged £906 a year for a typical dual fuel user, while the equivalent figure stands at £1,127 a year as of 27 September - an increase of 24.3 per cent. 

Rather than improving, it is thought tariffs are likely to get even more costly with the price cap expected to rise by around a further £300 when it is reviewed and altered in April next year. 

The reduction in potential savings for customers has led to a big decrease in consumers switching suppliers.

In fact, Electralink's latest switching statistics found that 399,000 customers changed supplier in August 2021, a 24.7 per cent decrease on August 2019 and the lowest figures seen in August since 2016.

James Mabey, analyst at Cornwall Insight, said: 'The record-high wholesale prices and the resulting energy crisis has no doubt taken its toll on the energy tariffs available to customers, with domestic tariffs seeing substantial price increases over the summer months.

'Usually, a rise in the default tariff cap by Ofgem would widen the gap between the cap and the lowest deals making switching more worthwhile.

'However, with wholesale prices remaining well above typical levels, it is not clear  the savings gap will reopen. This is compounded by the fact that many tariffs have been removed from the market.

'The drastic reduction in the number of tariffs available, along with a handful of suppliers stopping customer onboarding completely, suggests the domestic switching landscape will retain a low level of switching until the gap between delivered costs falls below the price cap once more.

'This will either be when the price cap is amended in April next year or the current highs in the wholesale market abate.'

Inflated prices for second-hand vehicles have been highlighted in new data, as manufacturers continue to struggle to meet production demands of new cars. 

The average price of a used car advertised last week was 23.9 per cent higher compared to the same week a year ago rising to £19,018 - the highest figure Auto Trader says it has ever recorded.

And it says 17 per cent of 'nearly new' second-hand models - those up to 12 months old - are now being advertised for above what they cost brand new.

The report comes after This is Money and cap hpi revealed last week the year-old vehicles that are being sold on average for more than the new manufacturer list prices and which particular used models have risen most in value in the last six months.

The recent boom in used vehicle values is a result of unprecedented demand due to extended waiting times for new cars to be delivered. 

A shortage of semiconductor chips needed for the latest models means manufacturers simply can't make them quickly enough, with some - including Jaguar Land Rover - quoting 12-month waiting periods for particular models. 

Auto Trader says the shortage of new cars has been the predominant factor that has sparked 76 consecutive weeks of average used car price growth.

It says 'consumer demand' for second-hand motors - based on searches and advert views on its website - is up 19 per cent compared to a year ago. 

The marketplace added: 'This growth is reflected in the more than 14.8 million cross platform visits to Auto Trader, which marks a massive 32 per cent increase on the same week two years ago. 

'There was also a 20 per cent rise in the hours (2.2 million) consumers spent researching their next car on its marketplace.'

The report says the very strong consumer demand in the market is also highlighted by the faster speed at which retailers are selling cars. 

Last week, it took an average of just 23 days for stock to leave forecourts, which is 17 per cent faster than the speed of sale recorded during April.  

Auto Trader says this means retailers are not having to lower their prices nearly as much as they usually do in order to shift vehicles.

Of the 2,218 retailers who made daily price adjustments last week (202 fewer than in the same period in 2019), the average was a reduction of just £96 - in the same week of 2019,  retailers were trimming prices by an average of £304 (68 per cent more). 

Almost one in five year-old cars advertised above new price 

Such is the massive acceleration in used car prices, almost one in five of 'nearly new' examples listed on Auto Trader are currently being offered for prices more expensive than their brand-new equivalents. 

These are cars that are up to a year old and would have normally experienced sizeable depreciation - as is the case for most vehicles in the first 12 months. 

Such is demand that 17 per cent are being advertised above what they would cost brand new. 

That is a huge jump on the previous all-time high of 11 per cent recorded by the online patform in August, and over four times as many than in January (4 per cent). 

Remarkably, 37 per cent of nearly new cars are currently priced within 5 per cent of their brand-new counterparts, up from 28 per cent in August and 13 per cent at the start of the year, says Auto Trader.

Cap hpi, which tracks used car sale prices and provides vehicle valuation information to drivers, explained which models in September sold for more than what they cost new.

Topping the chart was the previous-generation Dacia Sandero, which was replaced with a new version earlier this year. The average price paid for one new - where stocks remain - is £9,773 while the average sale value of used examples with 10,000 miles on the clock is £11,673 - a premium of 19.4 per cent.

It's also a similar case with the all-new Sandero. Cap hpi says used values for a six-month old version is £12,908, while a new example ordered will - on average - cost just £11,843.

It means buyers are currently willing to pay around the same for a year-old previous-gen Sandero as they are the latest example, simply because of long waiting times.

This is also the norm for year-old Duster SUVs, which are around £1,000 more expensive used - and with 10,000 miles already clocked up - than its new price commands.

Other examples of year-old mainstream models being more expensive than a new one include diesel Range Rover Evoques as well as oil-burning Land Rover Defenders and Discovery Sports, which is likely linked to the 12-month delivery waiting periods quoted recently.

Porsche's Macan SUV, Mini Coopers (and hot hatch Cooper S version) as well as Volvo XC40 compact crossover and the Ford Kuga are also examples of mainstream models selling second-hand for above a showroom new price. 

Richard Walker, Auto Trader's data insights director, said: 'With so much attention focussed on inflation right now, there’s huge interest amongst economists on those components that are recording substantial price rises, not least used cars which have been a notable driver of recent UK inflation rates. 

'With levels of used car price growth once again smashing previous records, there is a lot of speculation around how long this boom could last. 

'Whilst inflation in itself does pose a potential risk to consumer demand, we don’t expect to see price growth slow anytime soon. 

'This is based on the continued acceleration we’re tracking across the market - fuelled, in part, by increased levels of household savings, a positive sentiment shift towards car ownership, and the 1.5 million ‘lost’ transactions last year - coupled with the ongoing shortage in both new and used car supply.'

REVEALED: The second-hand cars that have risen in value most in the last 6 months   

Last week, This is Money and cap hpi listed the models that are currently seeing the biggest rise in value in the last six months - March to September.

The data is based on three-year-old vehicles with an average of 30,000 miles on the clock.

All cars listed have seen values increase by around 48 per cent and more, with some priced around 60 per cent higher than they were in March 2021. 

The data is collated from various sources, unlike Auto Trader, and does take into account dale prices rather than advertised 'list' prices. 

20. Vauxhall Astra (2015-2020)

Vauxhall's popular family hatchback creeps into the list of big movers over the last six months.

Used values for the previous-generation car have risen by almost 48 per cent, which means the average value of a three-year-old example with 30,000 miles on the clock is more than £3,300 higher than it was in March.

19. Skoda Yeti (2009-2017)

The Yeti was discontinued in 2017, with Skoda switching its SUV range to a more typical design. That said, the Yeti's quirky looks and practical layout means it has a strong fanbase, which has kept residual values high ever since production ended.

Cap hpi says a three-year-old model with average mileage has gone up in value by more than £5,000 in the last six months. 

18. Jaguar XF (2015- )

Luxury models aren't the cars that usually top lists for holding their value well. Expensive to begin with, they depreciate rather quickly.

However, Jaguar's XF is the one motor to represent the executive-car category in this list, with average values of three-year-old examples rising by 48.2 per cent between March and September. That translates to an extra £7,000 in an owner's pocket. 

17. Mini Cooper (2018- )

The shortage of semiconductor chips is hitting UK car makers hard, including Mini's Plant Oxford, which was forced to halt production earlier this year due to the lack of components.

It means build numbers of the current Mini Cooper are behind, which is forcing used values higher. Owners willing to sell today can expect to pocket £5,350 more than they would have done in March.

16. Ford Kuga (2012-2020)

Ford recently introduced a new version of its Kuga SUV, with sleeker looks and the addition of a plug-in hybrid drivetrain.

However, the previous-generation car, with its more traditional boxy dimensions and heaps of interior space, remains a popular choice among Britons. Those who already one will be pleased to hear the average value of a three-year-old example has risen by 48.8 per cent in the last half year. 

=14. Mini Cooper S (2018- )

Mini's answer to a hot hatchback, the Cooper S, is bettering the standard Cooper when it comes to increasing residual values in recent months.

Owners of this nippy motor would pocked an additional £6,187 if they sold now compared to six months ago, based on cap hpi's data for three-year-old cars with 30,000 miles on the clock. 

=14. Kia Soul EV (2014-2019) 

Cap hpi told us that few electric cars feature in this list because their used values are already so high. Yet the previous-generation Kia Soul EV clearly had some room for movement in 2021.

The average price of a three-year-old second-hand example with up to 30,000 zero-emission miles totted up has risen by almost 50 per cent in the previous six months. With an official range of 132 miles, it falls quite some way short of the current Soul EV (280 miles).

13. Nissan X-Trail (2015-2019)

With demand for big SUVs going strong, the Nissan X-Trail is one model that is seeing second-hand values rise this year.

Owners could sell a three-year-old X-Trail with 30,000 miles for £5,650 more than they would have done back in March, with average values for these off-roaders rising 49.6 per cent. 

12. Nissan Qashqai (2018-2021)

The Nissan Qashqai has been the most popular SUV in the UK ever since it first hit the market in the mid-2000s. Despite there being plenty on the road - and a new model hitting showrooms this year - values of second-hand examples are going up.

A three-year-old Qashqai with 30,000 miles tallied up in that time has risen in value over the last six months - on average - from £12,000 to almost £18,000.

11. Renault Kadjar (2015-2019)

The Kadjar and Nissan Qashqai are mechanically very similar, sharing the same platform and engines as part of the partnership between Renault and its Japanese sister brand. 

It's not much of a coincidence to see values for the French compact SUV rising at a similar rate to the Qashqai, with there clearly being appeal for second-hand motors of this type. This has pushed used Kadjar prices higher by 50.4 per cent in the last six months, based on three-year-old examples. 

10. Peugeot Partner Tepee (2008-2018)

A good option for those with small families and also a very popular model via the Motability schemes, with the van-turned-mini-MPV capable of taking wheelchairs with some adaptation. 

Diesel variants have seen a boom in value in recent months, with a three-year-old Partner Tepee worth just over £8,000 in March and now selling for over £12,000. 

9. Volvo V40 (2012-2019)

Volvo might have binned its V40 a couple of years ago, essentially replacing it with the compact XC40 SUV, but it's still an accomplished motor for anyone in the market for a traditional family hatchback.

Owners who bought one new three years ago and driven around 30,000 miles will be pleased to hear values have climbed by 52 per cent in the last six month, adding over £5,000 in monetary terms.

8. Toyota Prius Hybrid (2015-2019)

The original poster car for greener motoring, the Prius is still going strong today. Those living in cities will know that the hybrid Toyota remains the top choice for ride hailing firms, with the car providing good reliability and low running costs in urban areas.

It's the conventional hybrid that we're focussing on here (not the plug-in hybrid), with cap hpi saying the value of a three-year-old used example with 30,000 miles racked up has grown from just under £11,600 in March 2021 to a fraction under £17,800 by September.

7. Hyundai Ioniq Hybrid (2016-2020) 

Another used hybrid soaring in value is Hyundai's Ioniq, which, like the Toyota Prius, is a large family car boasting eco credentials for those who live in built-up areas.

With more drivers considering alternative fuel vehicles, the Ioniq has seen a huge surge in value in the last six months. In March, you should have expected to pay around £10,000 for a good second-hand example from 2018 with 30,000 miles on the clock. In September, used prices rose to £15,680 - a 53.5 per cent increase. 

6. Ford Galaxy (2015-2020)

If you drive a Ford Galaxy - especially a black one - you've likely been mistaken for an Addison Lee employee a few times. But it is the owners of Ford's big MPV that are getting the last laugh in terms of used values.

A three-year-old diesel Galaxy with 30,000 miles on the clock is worth 54 per cent more today that it was six months ago, such is the demand for big, family-transporting, motors. 

5. Vauxhall Mokka (2012-2020)

There's a new Mokka in Vauxhall showrooms today, and - in our opinion - its daring looks are far more attractive than this relatively mundane first attempt. Yet there is growing demand for the brand's initial attempt at a compact SUV on the used market.

Cap hpi data shows that a three-year-old Mokka with average mileage has gone up in value by 54 per cent in the last half year - meaning owners could make £4,500 more selling today than if they offloaded in March. 

4. Vauxhall Combo Life (2018- )

Another used Vauxhall gaining in value in the last half a year is the Combo Life - the brand's answer to a van-shaped MPV that is mechanically identical to its commercial vehicle.

Values for three-year-old examples are up almost 56 per cent in six months. It means an owner selling today would make £4,500 more on average than if they did in March. 

3. Mercedes-Benz V-Class (2014-2019) 

From a compact MPV to one of the biggest on the market - the V-Class is based on Mercedes' Vito commercial vehicle, offering seating for up to seven with ample space for luggage in the boot.

Residual values are always high, given the small production outputs and the fact many are bought up by taxi businesses. Yet those who own a V-Class and are willing to sell could make £14,400 more than they would have done in March, with average values of three-year-old examples up 57 per cent.

2. Vauxhall Zafira (2012-2018)

Even cap hpi says it is 'really hard to comprehend' that a used Vauxhall Zafira has gone up in value by as much as they have, but that's the sizable impact the semiconductor chip shortage is having on the wider motor market today.

A three-year-old Zafira would have sold for just over £8,500 around March, but a near-58 per cent rise in value since means some car buyers are paying up to £13,500 for a used one.

1. Toyota Auris Hybrid (2012-2019)

The biggest used-car value riser in the last six months is Toyota's Auris. It has since been replaced by the Corolla - which is built in Burnaston, but demand for second-hand hybrid versions of the green family hatch have gone sky high. 

Prices being paid for three-year-old versions with 30,000 miles clocked up are up 60 per cent in the last half year, pushing average values from just over £9,600 in March to nearly £15,500 last month. 

Families have been told to get ready for an imminent interest rate hike.

The Bank of England has given its clearest warning yet that rates will have to rise soon to keep a lid on soaring inflation following a surge in energy prices.

But while some experts forecast that the base rate could rise from its all-time low of 0.1 per cent before Christmas, others think it could be longer before any increase is announced.

With interest rate changes notoriously hard to predict, this leaves savers in a quandary as to what to do with their money.

Should they hold off investing in a fixed-rate bond in case rates go up? Or should they grab a top fixed deal now to avoid missing out on extra interest in the meantime? The consensus among experts is not to wait.

Fixed-rate deals have edged up in recent weeks, with the best one-year bond now paying 1.33 per cent compared to just 0.6  per cent on easy-access accounts. There is also no guarantee that savings deals will rise in line with any increase to the base rate, as they have previously.

Instead, returns are being driven up by fierce competition between smaller banks, which are keen to attract money to fund lending.

And this has pushed up rates despite the base rate remaining at 0.1 per cent. 

Kevin Mountford, co-founder of savings platform Raisin UK, says: ‘Don’t wait for any change in the base rate as savings rates no longer reflect it. Any increase will get passed on to borrowers faster and at a higher rate than to savers.’

James Blower, of Savings Guru, adds: ‘Competition among the smaller banks has been driving up rates. If you see a good rate, grab it. 

While rates have risen in the last couple of months, they are now easing off and there is a danger of more cuts.’

Many smaller banks now pay more than 1.2 per cent on a one-year bond — up from less than 1 per cent in the summer. 

You can earn 1.33 per cent with Investec Bank, 1.3 per cent with Oxbury Bank, 1.27 per cent with Charter Savings Bank or 1.25 per cent with Ford Money.

Anna Bowes, director at Savings Champion, says: ‘No one knows what will happen with rates. You could look to lock away some money for one or two years. Notice accounts are also looking competitive.’

If you can give 60 days’ notice before making a withdrawal, Charter Savings Bank pays a variable rate of 0.83 per cent and Secure Trust 0.8 per cent. 

With 30 days’ notice, they pay 0.7 per cent. And last week Family Building Society launched a 90-day notice account at 1.06 per cent.

Coventry Building Society pays the best easy-access rate at 0.65 per cent, but you are limited to four withdrawals a year. 

Marcus and Charter Savings Bank pay 0.6 per cent with no restrictions. One thing savers must not do is leave their cash with big banks paying just 0.01 per cent.