Millions of households across Great Britain face higher energy costs this autumn as Ofgem confirmed that the price cap on dual-fuel bills will rise by 2 percent to £1,755 a year from October.
The energy regulator said the change would add just over £35 annually to the average household bill, reflecting higher standing charges and adjustments linked to government schemes. The increase coincides with colder weather, when energy use traditionally rises.
A key factor in the rise is the expansion of the Warm Home Discount scheme, which analysts at Cornwall Insight estimate will add around £15 to a typical bill. In return, the programme will provide an additional 2.7 million households with a £150 discount, offering targeted support as energy prices remain elevated.
Around nine million households on variable tariffs will see the impact of the higher cap immediately, with actual bills varying according to usage. The cap sets a limit on unit rates for gas and electricity, not the total bill, meaning families using above-average amounts could face steeper charges.
From October, electricity prices will increase from 25.73p to 26.35p per kilowatt-hour, while gas will fall slightly from 6.33p to 6.29p per kWh, reflecting modest declines in wholesale markets. However, standing charges will rise further. The electricity standing charge will move from 51.37p to 53.68p a day, while gas will rise from 29.82p to 34.03p a day. These increases cover the cost of maintaining and upgrading energy networks.
The Labour government criticised the policies of the previous Conservative administration, arguing that decisions such as blocking onshore wind and delaying new nuclear projects left Britain heavily dependent on volatile fossil fuel markets. Labour said its energy strategy will protect consumers by expanding the Warm Home Discount to six million households in total, while investing in homegrown renewable power to reduce costs long term.
The rise in the price cap follows a short period of relief over the summer, when bills fell by 7 percent to £1,720 due to lower wholesale prices. Despite this, the typical household will still pay around £600 more per year compared with pre-2022 levels, when Russia’s invasion of Ukraine caused global gas prices to surge.
The latest increase is expected to reignite debate over the affordability of energy as households prepare for winter. Government figures show household energy debt hit a record £4.15 billion at the end of last winter, highlighting the financial strain facing families.
Looking ahead, Cornwall Insight forecasts a slight fall in the price cap from January, though this will depend on weather conditions, global market trends and the costs of new policies, including investment in nuclear energy.
