Today, the collective energy bills of households across Great Britain have seen a £149 annual surge, all due to the latest energy price cap coming into effect.
The cap, set quarterly by regulator Ofgem based on wholesale energy prices, has risen by 10%, bringing the average annual bill for a typical dual-fuel household paying by direct debit to £1,717. This marks an increase of nearly £150 compared to the April-June cap.
Although this is lower than the £2,500 cap introduced during the peak of the energy crisis, it remains significantly higher than in autumn 2021, when average bills were capped at £1,277 per year.
Starmer has faced ongoing criticism for the government’s decision to cut winter fuel payments for all but the poorest pensioners receiving pension credit.
The energy price cap, set by the industry regulator Ofgem, will rise by 10% to £1,717 a year for an average dual-fuel household in Great Britain paying by direct debit for the October to December period. This increase adds further strain to household budgets just as temperatures drop and many people turn their heating back on.
The rise in wholesale energy costs has driven up bills, with the new cap representing a significant jump from the previous £1,568, which had been in place since July.
Annual energy bills remain considerably higher than they were before the 2021 energy crisis, which worsened following Russia’s full-scale invasion of Ukraine in 2022.
Research by the Resolution Foundation reveals that 7.7 million households in England—particularly families with children—are at risk of experiencing “fuel stress” this winter. The analysis of government data found that 37% of all households are facing “fuel stress,” defined as needing to spend more than 10% of their income on heating, excluding housing costs. Notably, 77% of single-parent households are likely to face fuel stress during the winter months.
Last month, MPs approved the government’s plan to cut the winter fuel allowance—which ranged from £200 to £300, depending on the recipient’s age—for all but the poorest pensioners on pension credit.
A government spokesperson said: “We will do everything possible to support vulnerable families this winter – including with the £150 warm home discount expected to support 3 million eligible households, while around 1.3 million households in England and Wales will continue to receive up to £300 in winter fuel payments.
“Alongside this, our plans for the biggest potential boost to home energy standards are set to lift 1 million households out of fuel poverty.”
