London Daily

Focus on the big picture.
Tuesday, Oct 27, 2026

Energy price: Bill shock for millions as rises hit

Energy price: Bill shock for millions as rises hit

Millions of people will now feel the impact of an unprecedented £700-a-year rise in energy costs - at the same time as a host of bill hikes take effect.

The 54% rise in the energy price cap means a household using a typical amount of gas and electricity will now pay £1,971 per year.

A further rise pushing the annual bill up to £2,600 should be expected in October, one analyst has told the BBC.

Council tax, water bills and car tax are also going up for some on 1 April.

Minimum wage rates are rising which, along with some financial support from the government, is partially softening the blow.

The £693 a year rise in a typical energy bill will affect 18 million households, with 4.5 million customers on prepayment meters facing an even bigger increase of £708 a year.

Among them is Winston Carrington, a grandfather in his 70s, who said he was growing vegetables in the garden of his Manchester home to help ease the impact of the rising cost of living.

Winston Carrington is worried about covering his bills


"I'm going to grow, and I'm going to fill my freezer this year with my own produce. I'm going to have to," said Mr Carrington, who uses a prepayment meter.

"I can't go away this year again, not because of Covid or anything. I just can't afford to go away. The state pension that we're getting at the moment does not cover what I need."

Prices in general are rising at their fastest rate for 30 years, but the sudden increase in the cost of energy is the most significant for individuals.

New official figures suggest four in 10 bill-payers have been finding it very, or somewhat, difficult to afford their energy costs.

The governor of the Bank of England, Andrew Bailey, said the country is facing the biggest single shock from energy prices since the 1970s. It is the largest increase, by far, in the energy regulator Ofgem's price cap, since it was introduced.

The cap, set every six months for England. Wales and Scotland, is designed to protect domestic customers from the volatility of wholesale energy prices.


However, official forecasters and analysts have warned people to be braced for another huge rise in energy bills when the next cap takes effect in October. Wholesale prices have been affected by the war in Ukraine and ongoing pressure on suppliers.

This could add another £629 to a typical bill in October, according to the most up-to-date prediction, provided to the BBC from leading energy consultancy firm Cornwall Insight.

If this proved to be accurate, then the average bill next winter would be double that of the winter just gone. A typical bill is expected to fall back to the current level in summer 2023, although longer-term forecasts are tricky.

Bill Bullen, the boss of Utilita, warned that elderly people and children were at serious risk over the next winter because of a lack of heating.

"We are going to see an extra £500 or £600 added to bills in October, and frankly the chancellor's going to have to fund that entirely for low-income households," he told the BBC's Today programme.

"He won't be able to afford to take this problem away for everybody... but for customers who can't respond to that price [increase], that's where the help needs to be targeted."

Chris O'Shea, chief executive of Centrica, which owns the UK's largest supplier British Gas, said his business was supporting struggling customers and was giving grants to those most in need.

"We would love to do more. The reality is that for a retail energy company, the market has gone through quite a change, and profits have reduced quite substantially," he told the BBC's Big Green Money Show.

However, he accepted that profits had risen sharply for the heavily taxed exploration arm of the business.


Month of bill rises


Council taxes and water bills are also going up for many people, added to the rising cost of food and household items.

One estimate suggests that a typical consumer is now facing a £73 a month increase in bills, of which about £58 is from rising energy costs.

"The added cost pressures set to come into play in April threatens to obliterate even the most finely tuned budgets." said Myron Jobson, senior personal finance analyst at Interactive Investor.

The Office for National Statistics said that low earners, renters, parents, people with disabilities, unemployed people and divorcees were least able to afford a bill shock.

Even before the latest increases, charity Citizens Advice said that in March, it referred 24,752 people to food banks or to other charitable support, up by 44% compared to the same month last year.

The government has said it was taking "decisive action" to help people with the cost of living, including a £200 reduction to energy bills in October - which needs to be paid back in instalments, and a £150 reduction in council tax bills for 80% of billpayers.

Speaking to BBC Breakfast, Sir Keir Starmer, the leader of the Labour party, branded the government's response as "pathetic".

He accused the government of forcing people to choose between heating their homes or eating.

He said that the Labour party would introduce a one-off windfall tax on the profits of oil and gas companies and use the money to help households struggling to cope with rising energy bills.

But Chancellor Rishi Sunak told the BBC's Newscast: "I'm confident in what we've done. I know it's tough for people. We're facing a very difficult situation with the price of things going up and I want to do what we can to ameliorate some of that, but I'm also honest with people that we can't ameliorate all of it, sadly."

Newsletter

Related Articles

0:00
0:00
Close
Education or Indoctrination? The Growing Debate Over Religious Participation in British Schools
Germany's Vanishing Shopfronts: The Silent Collapse of the Businesses That Built Its Cities
Northern Ireland Executive Reaches Agreement on Public Transport Modernization and Cross-Border Rail Infrastructure Funding
Department for Energy Security and Net Zero Approves New North Sea Carbon Capture and Storage Industrial Clusters
Office for National Statistics Reports Stabilization in Private Rental Growth Across Major English and Welsh Regional Cities
United Kingdom Automotive Manufacturing Output Rises Moderately as Electric Vehicle Assembly Lines Expand in the Midlands
Competition and Markets Authority Launches Formal Inquiry Into Cloud Computing Infrastructure and Artificial Intelligence Partnerships
Scottish Government Finalizes Emergency Budget Adjustments Following Multi-Year Public Sector Funding Shortfalls
National Health Service England Announces Major Emergency Care Overhaul to Alleviate Severe Winter Capacity Pressures
Chancellor Rachel Reeves Prepares Autumn Budget Amid Intensifying Scrutiny Over Public Spending and Fiscal Rules
Bank of England Signals Cautious Approach to Further Interest Rate Cuts as Persistent Wage Growth and Inflation Pressures Remain
Transport for London Unveils Expanded Zero-Emission Bus Fleet to Meet Capital Air Quality Targets
Higher Education Institutions Face Deepening Financial Strain Amid Declining International Student Enrolment
Automotive Industry Leaders Criticize Government Tax Policies and Urge Action on Retail Consumer Confidence
Environment Agency Issues Flood Alerts Across Scottish and English Waterways Following Heavy Rainfall
Independent Audit Highlights Persistent Security Vulnerabilities Across Legacy Government Digital Portals
Northern Ireland Political Leaders Clash Over Westminster Funding Allocations Ahead of Autumn Budget
Ethnic Minorities in England Face Significant Disparities in Routine Breast Cancer Diagnosis Rates
National Police Chiefs Report Alarming Surge in Domestic Abuse Cases Fuelled by Expanding Illegal Cocaine Market
Government Announces Two Hundred and Twenty Million Pound Pothole Funding Boost for Local Highway Authorities
China Issues Formal Warning Over Potential United Kingdom Restrictions on Chinese Electric Vehicles
British Defence Ministers Sign E5 Pact to Enhance European Military Capabilities and Industrial Cooperation Within NATO
United Kingdom Business Activity Expands at Fastest Pace in Eight Months According to S&P Global Flash Survey
Chancellor John Healey Prepares Major Devolution Package and Bank Profit Surcharge Ahead of Upcoming Autumn Budget
National Health Service Consultants in England Announce Two-Day Strike Action Scheduled for November
Major Clean-Up Under Way Across Britain Following Destruction Caused by Consecutive Storms Austen and Boelo
KEY TRENDS TO WATCH
Declassified Intelligence Files Reveal British Security Services Monitored National Health Service Founder
British Government Launches Sweeping Regulatory Crackdown on High-Risk Cosmetic Procedures
Scottish National Party Demands Ban on Using Scottish Revenues to Fund English Nuclear Energy Projects
Mayor of London Initiates Landmark Pedestrianisation of Oxford Street to Revitalise Global Retail Hub
British Judges Granted Expanded Legal Powers to Punish Convicted Killers Who Refuse to Attend Sentencing
United Kingdom Poised to Miss Reduced International Aid Spending Targets Ahead of Fiscal Review
Surging Cocaine Consumption Drives Record Drug Fatalities and Rising Crime Rates Across Britain
Department of Health and Social Care Announces One Hundred and Forty Million Pound Boost for Urgent Care
British Services Sector Records Strongest Growth in Eight Months Despite Broader Economic Uncertainty
United Kingdom Retail Sales Suffer Unexpected Decline as Consumer Confidence Plummets
Greater Manchester Mayor Andy Burnham Urges National Debate on Restoring European Union Free Movement
Deep Cabinet Divisions Emerge Over Controversial Approval of North Sea Fossil Fuel Projects
United Kingdom Government Urges Citizens to Stockpile Essential Supplies in National Resilience Pivot
Storm Boelo Kills Two People and Cuts Power to Tens of Thousands Across Great Britain
Critical Software Flaw Forces Dozens of United Kingdom Government Services Offline Amid Mass Security Warnings
UK Consumer Confidence Tumbles Amid Rising Energy Costs and Global Commodity Price Pressures
North Sea Transition Authority Approves Production from Jackdaw Gas Field to Bolster Domestic Energy Security
Storm Boelo Leaves Tens of Thousands of Households Without Power Across Scotland and Northern Ireland
UK Government Launches National Be Ready Campaign Urging Households to Prepare Three Days of Emergency Supplies
Department for Environment Food and Rural Affairs Implements Stricter Water Quality Regulations for British Rivers
Welsh Government Launches Major Renewable Energy Initiative to Expand Offshore Wind Capacity Along the Coast
Northern Ireland Executive Reaches Final Agreement on Comprehensive Regional Infrastructure Modernization Plan
Office for National Statistics Reports Moderate Increase in British Retail Sales Driven by Autumn Discounts
×