Overheating Engine... help please

My Orion has started overheating.

It will steadily increase reaching the red after about 10 minutes driving.
Also the heating in the car has stopped working.

I have checked for leaks and there is plenty of water in the resevoir and the fan is fine.

However the hose at the top of the radiator is always cold...

Could this be a thermostat or water pump problem?? what should I start by checking?? any help appreciated.

Many thanks

I would replace the thermostat "quickly" if the upper radiator hose is always cold then that indicates that the thermostat is closed and not allowing water to flow. If you continue to run the car you could damage the head or blow a head gasket which will cost a lot more than a $6 thermostat.