Energy bills set to jump by £332 from July
UK energy bills are expected to rise sharply this summer as higher oil and gas prices feed through into household costs.
The Ofgem price cap is forecast to increase from £1,641 between April and June to £1,973 from July, according to consultancy Cornwall Insight—a jump of £332 a year.
The firm, which accurately predicted the last price cap change, has been raising its forecasts in recent weeks as the Middle East conflict continues to push up energy prices.
Just last week, it had expected a smaller increase of £186, highlighting how quickly the outlook has worsened.
The outlook is likely to intensify calls for the government to introduce a targeted “social tariff” to support lower-income households, particularly as concerns grow over the impact of the ongoing Middle East conflict on energy markets.
Energy shock pushing up mortgage costs
Rising energy prices are now feeding through into the mortgage market, with borrowing costs climbing despite the Bank of England holding rates at 3.75%.
According to Moneyfacts, the average two-year fixed mortgage rate has risen from 4.83% at the start of March to 5.35%, adding roughly £900 a year to the cost of borrowing £250,000 over 25 years.
Five-year fixes have also moved higher, increasing from 4.95% to 5.39%, the highest level since July 2024, adding around £775 annually to repayments on the same loan size.
