London Daily

Focus on the big picture.
Sunday, Jun 14, 2026

Energy bills set to soar but millions may get £200 help

Energy bills set to soar but millions may get £200 help

A record rise in energy bills is set to be announced on Thursday, but the government may step in to reduce bills by £200 for many households.

The energy regulator will detail how much bills can rise from the beginning of April, with forecasts they could reach £2,000 for many homes.

Energy firms are likely to be given loans to help them cut customers' bills, the BBC has been told.

Ministers may also extend targeted help for those in need.

But there are doubts over whether the measures will be ready by the time higher prices start on 1 April.

Energy bosses have told the BBC that they have been kept largely in the dark about the government's plans.

While some have described the plan to lend money to energy companies, to allow them to reduce bills as credible, they say they are worried that the details of the plan have not been thought through.

Energy firms are struggling under the weight of surging wholesale gas prices, and passing on some of that rise to consumers, driving up the cost of living.

Rising energy bills have helped push inflation up to a 30-year high, leaving the government under pressure to intervene.

The Treasury's "rebate and clawback" scheme, first revealed in The Times, would involve providing around £5-6bn in loans to energy firms to enable them to lower bills.

But the scheme has raised concerns among providers because the money would still have to be paid back eventually.

Energy bosses told the BBC they expect the plan would include recouping the money from households over three to five years as wholesale costs fall.

However, the bosses said wholesale prices are not expected to fall significantly any time soon.

Ofgem was meant to reveal April's price cap - which sets how much providers can charge for gas and electricity - next Monday, but it has brought the announcement forward.

The government's announcement, which could come as early as Thursday, may also include an extension of the warm homes discount and changes in other benefits.


One of the UK's biggest providers, EDF, said in a statement it would welcome government action, but gave no details of any plan nor the timing.

Philippe Commaret, the firm's managing director for customers, said: "Ballooning wholesale gas prices are driving energy bills up and customers need government to act now, especially to support those most in need.

"We look forward to hearing from government urgently on how it will help struggling households beyond the support energy companies already provide. Delaying action adds to the stress and anxiety households face."

It is feared Ofgem's announcement will take the average annual domestic energy bill from 1 April to about £2,000 for 22 million households, up from about £1,300.

That has intensified calls in recent weeks for the government to step in to help struggling households.

Citizens Advice revealed they have already seen a record number of people turning to them for advice on energy debts.

The cost of living is forecast to rise further this year, along with interest rates.

Across the economy individuals and companies are reporting price pressures. On Wednesday, a survey found that shoppers are seeing the sharpest rise in prices for a decade.

The cost of broadband and mobile phones, raw materials, transport and fuel, and food and drink are among a wide range of products and services now on the rise.

There are also planned tax rises in April, with Prime Minister Boris Johnson under intense pressure to scrap an increase in National Insurance. But he, and Chancellor Rishi Sunak, said at the weekend the NI rise would go ahead.

Newsletter

Related Articles

0:00
0:00
Close
Royal Navy Takes Part in Trooping the Colour for the First Time in 350 Years
Think Tank Warns Labour's European Union Reset Could Carry Significant Economic Costs
UK Semiconductor Centre and Japan's Rapidus Forge Advanced Chip Manufacturing Partnership
UK and Japan Launch Offshore Wind Compact Backed by £9 Billion in Investment
Starmer and Trump Discuss Iran Peace Efforts and Reopening of the Strait of Hormuz
United Kingdom and Japan Sign £18 Billion Investment Partnership Focused on Clean Energy and Advanced Technology
Barclays Moves to Acquire GoHenry in Bid to Expand Youth-Focused Fintech Services
UK Lupus Patients Show Remission in NHS Genetic Therapy Trial
London Clean Air Zones Linked to Fewer Emergency Hospital Admissions for Respiratory Illness
UK World Cup Scheduling Research Suggests Energy Bill Savings From Off-Peak Usage
UK Economic Anxiety Rises Among Young People Over Long-Term Job Prospects
NHS Expands Meningitis B Vaccination Programme for School Leavers and New Students
London Ultra-Low Emission Zone Linked to Drop in Emergency Respiratory Hospital Admissions
Derbyshire Police Officer Investigated Over Alleged Use of AI-Generated Evidence in Case Files
UK Parents Back Proposed Under-16 Social Media Ban as Online Safety Concerns Grow
Four Palestine Action Activists Jailed Over Sabotage Attack on Israeli-Linked Arms Facility
Barclays to Acquire GoHenry in Push to Expand Digital Banking for Children and Teenagers
UK Government Reaffirms Defence Spending Commitment Amid Cabinet Pressure and Political Disputes
Belfast Unrest Prompts Security Review as Paramilitary Activity Comes Under Renewed Scrutiny
SpaceX IPO Pushes Elon Musk to Become World’s First Trillionaire After Record Valuation Surge
United States and Iran Near Landmark Peace Framework as Negotiations Reach Final Stages
UK Competition Watchdog Investigates Ryanair Family Seating Charges
Imperial College Study Links London Emissions Charges to Lower Hospital Admissions
Scottish First Minister Launches US Trade Initiative Ahead of World Cup Match in Boston
Fifteen Million Workers Gain Expanded Sick Pay Rights Under UK Reforms
British Retail Investors Secure Record Participation in SpaceX Share Offering
Keir Starmer and Micheál Martin Coordinate Response to Northern Ireland Violence
NHS Prepares for Major Disruption as Resident Doctors Announce Four-Day Strike
Bank of England Expected to Hold Rates as Energy Costs Complicate Inflation Outlook
Britain Moves to Ban Under-16s From High-Risk Social Media Platforms and AI Chatbots
UK Economy Contracts as Middle East Conflict Weighs on Growth
Defence Secretary John Healey Resigns Over Military Spending Dispute With Treasury
Prime Minister Keir Starmer Faces Leadership Crisis After Senior Cabinet Resignations
NHS Trust Secures Funding for AI Tool to Detect Heart Failure Earlier
Government Unveils £4.5 Billion Investment Plan for Walking and Cycling Infrastructure
Nationwide Reports UK House Prices Falling as Borrowing Costs Remain Elevated
Centre for Social Justice Says Two Million Britons Are Using Illegal Loan Sharks
UK Carmakers Warn EU Local Content Rules Could Damage British Manufacturing
UK Government Imposes Emergency Ban on Seven Potent Synthetic Opioids
Royal Navy Completes Major North Atlantic Anti-Submarine Exercise Off Norway
NHS Figures Show Nearly 3,000 Patients a Day Receiving Care in Hospital Corridors
CBI Cuts UK Growth Forecast as Middle East Tensions Drive Inflation Risks Higher
Dan Jarvis Appointed UK Defence Secretary Following Major Government Reshuffle
University College London Study Links Physical Punishment to Higher Risk of Bullying
East Midlands Railway Unveils First Refurbished Train in £60 Million Modernization Programme
RNLI Issues National Water Safety Appeal Ahead of Expected Heatwave
Climate Change Raises Subsidence Risks for Millions of Homes Across Southeast England
Manchester Advances Plans for Underground Piccadilly Station With £1 Million Funding Commitment
Anti-Immigration Violence Continues in Belfast Amid Heightened Security Concerns
UK Law Locks Great British Railways Into Public Ownership
×