UK energy price cap to rise 4% from October, hitting three-year high
Ofgem has announced that the typical household energy bill in Great Britain will rise 4% from October to £1,723 a year — the highest level in three years, prompting renewed calls for government support for struggling households.
Great Britain's energy regulator Ofgem has confirmed that the price cap for a typical household's gas and electricity use will rise by 4% from October, reaching £1,723 a year. This marks the second increase within three months, following a 13% jump in July driven by soaring global energy prices linked to the war involving Iran.
Compared with 2024, when the Labour government took office promising to cut bills by £300 a year by the end of the decade, typical households will now pay £350 more annually. Under the previous system, phased out last month, the cap for the July-September period stood at £1,862 a year.
Government response
Energy Secretary Miatta Fahnbulleh acknowledged public frustration over rising bills in a Reddit Q&A, saying the government was doing everything it could to make energy more affordable. She pointed to measures already taken, including removing VAT from electricity bills and cutting £150 from energy bills through April's budget.
Calls for windfall taxes
TUC general secretary Paul Nowak renewed calls for a windfall tax on bank profits to help fund support for households, arguing that banks can afford to contribute more while many people are struggling to cover basic costs.
Households cutting back
Research commissioned by the End Fuel Poverty Coalition found that more than a third of households have started lowering washing machine temperatures and avoiding heating empty rooms since 2023, while about a fifth are going to bed early or heating only one room to save money. Coalition coordinator Simon Francis warned that some households are even skipping hot meals due to the cost of energy.
The government's clean power plan has drawn criticism from the Conservative party, which argues that network upgrade and market balancing costs tied to renewable energy expansion are pushing up electricity prices. Fahnbulleh countered that a greater share of renewables would reduce how often gas sets the overall price.
