Energy price cap rise takes effect as further bill hikes expected

Politics / 30 September 2026 Labour was on the rocks — now it’s on a life raft far from shore, Socialist Campaign Group rally hears 30 September 2026 Labour Party Conference 2026 / 30 September 2026 Health Secretary conference speech misses ‘elephant in the room’ of corridor care 30 September 2026 Workers' Rights / 30 September 2026 Bakers union vows to fight for Greggs jobs 30 September 2026 Wales / 30 September 2026 Senedd urged to unite behind calls to make polluters pay 30 September 2026 Policing / 30 September 2026 Scotland needs facial recognition safeguards, warns commissioner 30 September 2026 Politics / 30 September 2026 Rejoining EU an option, Burnham says 30 September 2026 A 4 per cent hike to Ofgem’s energy price cap took effect today amid warnings that household bills could soar by almost another £300 from January.

The increase coincided with Cornwall Insight predicting a further 16 per cent rise to £1,999 a year on January 1 — the biggest rise since January 2023.

The bill for an average household reached £1,723, up £60 a year. More than four million homes on standard tariffs are affected.

Cornwall said the predicted increase is driven by the escalating war on the Middle East, which has disrupted gas supplies as the Strait of Hormuz shipping route has been effectively closed.

The government has temporarily removed VAT from electricity bills until March 31 next year, cutting around £45 a year.

Prime Minister Andy Burnham said: “For many families, the energy bill is the one they dread the most.

“I don’t accept that it has to be this way… Families need breathing space now.”

The End Fuel Poverty Coalition has urged ministers to prepare an “emergency heat tariff” to cap heating costs this winter, with gas prices already rising 27 per cent year on year.

Jonathan Bean, of Fuel Poverty Action, said: “The government promised us a £300 bill saving, but we now face prices £500 higher than before the election.

“And electricity is still more than triple the price of gas and more than double heating oil.

“It’s not just a broken election promise, it’s a matter of life and death.”

Energy UK called for targeted support for households most in need this winter, warning energy debt is predicted to reach £7 billion by the end of 2026, and said Britain’s reliance on international gas markets leaves households exposed to global price volatility.

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