Energy bills to hit three-year high as Ofgem announces 4% rise from October

https://morningstaronline.co.uk/article/energy-bills-hit-three-year-high-ofgem-announces-4-rise-october

TUC calls for tax increase on bank profits to pay for social tariff to cut household bills

HOUSEHOLD energy bills will hit a three-year high in yet “another nail in the coffin” for budgets after Ofgem announced a 4 per cent rise from October.

The regulator confirmed today that gas unit rates are set to rise from 6.29p per kWh last winter to 8p, up around 27 per cent year on year.

It means the new cap is £1,723, which is £147 more than the same period last winter, when the October cap stood at £1,576, and 150 per cent higher than at the end of 2020.

From October, the government’s cut to VAT on electricity bills from 5 to 0 per cent will shave around £45 a year off the average bill.

But with experts predicting a further 9 per cent rise in January, unions and campaigners have urged the government to act again.

Cornwall Insight predicts the January 2027 price cap will rise to £1,872, 18 per cent higher than January 2026.

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