Energy bills to rise for millions

Millions of households will see energy bills rise by 2% this October, after regulator Ofgem announced the latest price cap. The typical household will now pay £1,755 a year - around £35 more than under the current cap.

The cap, which sets the maximum unit price for gas and electricity, reflects reported higher costs in transmitting and balancing energy across the grid. Standing charges are also increasing - up 4% for electricity and 14% for gas.

Government support measures, set to continue this winter, are partly driving the increase in bills as households on means-tested benefits will automatically receive the £150 Warm Home Discount, and eligibility has been widened by removing the previous property size restriction.

Only around a third of energy customers are currently on fixed-price deals, meaning that millions will be hit with increased costs as we go into winter. Consumer group Which? advises households to shop around, but to check for exit fees before switching. Paying via direct debit can also help trim costs compared to quarterly billing.

Campaigners warn this will bring another tough winter for many older people and families, especially those already struggling with £4 billion in energy debt. This is on top creeping inflation and rising food costs, which are already putting some of the most vulnerable under considerable financial stress.

Jan Shortt, General Secretary of the NPC said: "Ofgem has a duty to protect consumers, yet it continues to let the most vulnerable shoulder the burden of a broken energy system. Older people shouldn’t have to choose between heating and eating this winter, whilst the regulators look the other way."

If you are struggling with energy debt, contact your supplier immediately to arrange a payment plan or discuss other options like grants and hardship funds. 

Contact the Priority Services Register if you may need additional support put in place. You can also get free, expert help from debt charities like Citizens Advice or National Debtline to manage your debt and find other support. You can also check what benefits you may be entitled to https://www.gov.uk/benefits-calculators