London Daily

Focus on the big picture.
Friday, Sep 11, 2026

Millions prepare for huge rise in energy bills

Millions prepare for huge rise in energy bills

Millions of households will soon discover how high energy bills will go in October as regulator Ofgem announces a new price cap.

A household in England, Wales and Scotland using a typical amount of gas and electricity currently pays about £2,000 a year.

That annual bill is predicted to soar to more than £3,500, leaving many struggling or unable to pay.

The announcement is expected from Ofgem at 07:00 BST on Friday.

Charities and suppliers have urged ministers to improve support measures, which currently include a £400 rebate for all households.

They say the "devastating effect" of bill rises, which come alongside the increasing cost of food and other essentials, will lead some to choose between heating and eating this winter.

A further increase in bills is predicted when the subsequent cap takes effect in January, with a typical bill forecast by analysts to peak at well over £5,000 later next year.

On Thursday, UK wholesale gas prices jumped by 82p to 580p per therm - their highest level in five months - amid uncertainty about European and Russian supplies.


What is the energy price cap?


The cap is a limit on how much domestic customers in England, Wales and Scotland pay for each unit of gas and electricity, and on how much they can be charged for being connected to the grid (the standing charge).

It is set by the regulator Ofgem based on how much energy firms are having to pay for gas and electricity and will next be changed in October. It applies only to providers' standard and default tariffs, which most people are on. There is a separate cap for prepayment meter customers.

Up until now, a cap has been in place for six months, but from October it will be reviewed and changed every three months.

Ofgem sets out what people can expect to pay under the cap based on the annual bill for a household using a typical amount of energy.

At present that is £1,971 a year for about 19 million households on variable tariffs, and £2,017 for about 4.5 million prepayment meter customers. It is not a cap on the total bill, so any household that uses a lot of energy will pay more, or if it uses a little it will pay less.

In the six months from October last year, the price cap meant a typical household bill was £1,277 a year, or £1,309 for those on prepayment meters.


Prices have been rising consistently in Northern Ireland, where there is no cap owing to the limited number of suppliers. Businesses are also not covered by a cap and many face cost pressures that could be passed on to consumers in higher prices.

The expected rise in the cap in England, Wales and Scotland will put considerable strain on low-income households, according to charities.

Fuel poverty charity National Energy Action said it estimated that the number of households in fuel poverty would rise from 6.5 million to 8.5 million as a direct result of October's increase. A household is considered to be in fuel poverty if it has to spend 10% or more of its income on energy.

Dame Clare Moriarty, chief executive of Citizens Advice, said: "Every day our advisers help people in desperate situations: people who can't get to the end of the month without a food bank voucher, parents unable to afford nappies and patients with no credit to call their GP.

"Without more support, the soundtrack to winter will be the beeping of emergency prepayment meter credit running out and the click of lights and appliances being turned off."


'I'm living on nothing'


Among those already struggling with their finances is Marina Keohane, from Gainsborough in Ipswich, who said the thought of higher fuel bills this winter brings tears to her eyes.

"To actually fear every day how you're meant to live, that's just something else. I'm living on nothing," she said.

Marina Keohane recently stopped working due to ill health


"I don't use anything, the only thing that's on all the time is the fridge freezer. I have a TV on, I don't have the light on - I sit in darkness.

"Eating wise, I'm scared to use my cooker. It's electric and obviously if you put something in the oven it uses more [energy] so I try to stick to ready meals in the microwave or do salads."


Government support


So far the government is giving a £15bn package of support for UK households. This includes two payments totalling £650 for eight million low-income households on benefits and a £400 rebate for all homes.

No 10 previously said there would be no new support offered before a new prime minister is appointed on 5 September.

The current favourite to replace Boris Johnson, Liz Truss, has promised tax cuts and recently hinted at direct financial help for hard-pressed households.

The foreign secretary, writing in the Daily Mail, said she would take "decisive action on entering No 10 to provide immediate support".

Ms Truss said she would help people who are "feeling the squeeze" get through tough times, and repeated her pledge to hold an emergency budget.

However, she said it was not "right" to announce her full plans before the leadership race is over.

At a leadership hustings on Thursday, Ms Truss reiterated her promise to reduce taxes, reverse the national insurance increase and put a temporary moratorium on the green energy levy.

She said she would also look to increase energy supplies and become more "energy independent".

Her rival, Rishi Sunak, has said he would introduce more targeted support for households, and has promised to reduce VAT on domestic energy bills from 5% to zero.

On Wednesday, he said he would prioritise "helping vulnerable people with the cost of living rather than giving tax cuts funded by borrowing to very large companies and relatively wealthy people".

Labour wants the energy price cap to be frozen at its current level and paid for, in part, by a big increase in tax on oil and gas company profits.

Leading figures in the energy sector have called on the government to introduce an Energy Tariff Deficit Fund to spread out the cost for households over a decade, assuming prices eventually fall.

Chancellor Nadhim Zahawi has insisted "nothing is off the table" when it comes to action on soaring energy bills, but he doesn't favour freezing the cap.

On Thursday, a Treasury source said: "From day one the chancellor has been working flat out to develop options for further support. This will mean the incoming prime minister can hit the ground running and deliver support to those who need it most, as soon as possible."

Energy prices have hit record highs this year, driven by pent up demand after the pandemic and Russia's invasion of Ukraine.

Newsletter

Related Articles

0:00
0:00
Close
English Councils to Gain Power to Introduce Tourist Taxes by 2028
Kemi Badenoch Reshuffles Conservative Shadow Cabinet
Firefighters Make Progress Containing Major Wildfires in South Wales
John Lewis Partnership Reports £124 Million Loss
Study Says UK AI Data Centres Will Create Only a Quarter of Forecast Jobs
UK Government Considers Higher Industrial Water Prices Amid Supply Pressures
Andy Burnham Holds First Call With Donald Trump as UK Prime Minister
NHS Records Busiest Summer on Record as Heatwaves Drive Hospital Admissions
Home Secretary Orders Police Crackdown on Far-Right Anti-Migrant Vigilantes
UK Supreme Court Rules Northern Ireland Religious Education Curriculum Breaches Human Rights Standards
Markets Price in Four Bank of England Rate Rises by Next Summer
House of Commons Prepares Free Vote on Assisted Dying Bill
UK Government Bans Trade With Israeli Settlements in Occupied Territories
UK Economy Grows 0.4% in July as Artificial Intelligence Investment Supports Expansion
Andy Burnham Becomes UK Prime Minister After Keir Starmer Resigns
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
×