Energy price cap rise ‘will push millions in Great Britain into fuel poverty’

Energy price cap rise ‘will push millions in Great Britain into fuel poverty’

The government’s energy price cap has risen to £1,862 a year from Wednesday, a jump of £221 that will force an estimated 13.5 million homes in Great Britain to spend more than 10% of their income on fuel, pushing millions into fuel poverty after months of volatility on global gas markets. Typical household bills will surge by £220 a year, or roughly £18 a month, as the cap on gas and electricity rates increases by 13.5% under the regulator Ofgem’s latest review.

This new threshold means the number of households forced to spend over 10% of their income on energy bills will climb from almost 11.3 million in April to 13.5 million, according to fuel poverty campaigners. The rise is driven primarily by a 24% increase in gas unit rates, which have climbed to 7.33p per kilowatt hour, while electricity rates have risen by 5% to 26.11p per kilowatt hour.

Standing charges have remained largely unchanged, with electricity at 57.19p per day and gas at 29.04p per day for direct-debit customers. Only customers on standard variable tariffs are affected by this change, which impacts approximately 33 million households across England, Scotland, and Wales, while regulations and billing differ in Northern Ireland.

Those on fixed tariffs will not see any changes to their unit prices until their contracts conclude, with about 40% of bill payers currently on fixed plans. Households on variable contracts with standard meters are being urged to submit meter readings promptly before Wednesday to avoid being charged at the new, higher rates, as highlighted by price comparison platform Uswitch.

The price cap is set by Ofgem every January, April, July and October, and the next review is scheduled for 1 October 2026. The widely quoted £1,862 figure is not a maximum bill but rather what a household with typical usage would pay over a year, based on annual consumption estimates of 9,500 kWh for gas and 2,500 kWh for electricity.

Regional rates vary by postcode, meaning some households may face higher or lower increases depending on their location. Cornwall Insight has forecast that the price cap may fall slightly by 0.5% in October compared to July, with a forecast of £1,849 per year for a typical household, though energy costs are expected to remain high through the winter.

Fuel poverty campaigners warn that without intervention, the rising costs will deepen the financial strain on millions of households already struggling with the cost of living, as the price cap increase effectively acts as a price freeze only if the impact of global conflicts, such as the Iran war, is excluded from calculations. The energy price cap, introduced by the government in 2019, limits the rates for customers on standard variable energy tariffs and places a maximum amount per unit of energy used plus the daily standing charge that covers distribution costs.

It does not cap the total bill, meaning the more energy a household uses, the more they will pay. As the cap rises to the equivalent of £1,862 a year, the financial pressure on households is expected to intensify, with many facing the choice between heating their homes and paying for other essentials, a situation that fuel poverty advocates describe as unsustainable.

The increase in bills equates to an additional £18 monthly for households consuming a typical amount of electricity and gas, a figure that will compound over the coming months as winter approaches and energy demand rises. With gas bills rising by 24% and electricity bills by 5%, the disparity in cost increases highlights the growing reliance on gas for heating and the vulnerability of households dependent on this fuel source.

The price cap rise is a direct response to the volatility on global gas markets, which has been exacerbated by geopolitical tensions and supply disruptions, leading to higher wholesale energy costs for suppliers. Energy suppliers must cover the costs of buying wholesale energy, maintaining supply pipes, and operating their networks, all of which are factored into the price cap set by Ofgem.

As the cap increases, the financial burden on households will continue to grow, with many facing the risk of falling into fuel poverty, a condition defined by spending more than 10% of income on energy bills. The situation underscores the urgent need for policy interventions to support vulnerable households and prevent a further rise in fuel poverty across Great Britain.

Households are encouraged to review their energy usage patterns, consider switching to more efficient appliances, and explore tariffs that offer different rates for peak and off-peak times to mitigate the impact of the rising costs. Smart meters and energy management apps can empower households to make informed decisions about their consumption, helping them identify trends and set alerts for high usage to avoid unnecessary expenses.

Regularly reviewing energy tariffs and comparing deals through websites and comparison tools can help households ensure they are getting the best deal, with switching providers often unlocking better rates or more flexible terms. The rise in the energy price cap is a significant challenge for millions of households in Great Britain, with the potential to push many into fuel poverty and deepen the financial strain on those already struggling with the cost of living.

As the cap increases, the need for support measures and policy interventions becomes more critical to prevent a further rise in fuel poverty and ensure that households can afford to heat their homes without sacrificing other essentials. The situation calls for immediate action to address the rising costs and provide relief to vulnerable households, ensuring that the impact of global gas market volatility does not lead to a further increase in fuel poverty across Great Britain.

With the price cap rising to £1,862 a year, the financial pressure on households will continue to intensify, and the need for support measures becomes more urgent to prevent a further rise in fuel poverty. The increase in bills is a direct result of the volatility on global gas markets, and the rising costs will compound over the coming months as winter approaches, making the need for support measures more critical.

As the cap increases, the financial burden on households will continue to grow, and the need for policy interventions becomes more urgent to prevent a further rise in fuel poverty across Great Britain. The situation underscores the urgent need for action to address the rising costs and provide relief to vulnerable households, ensuring that the impact of global gas market volatility does not lead to a further increase in fuel poverty.

With the price cap rising to £1,862 a year, the financial pressure on households will continue to intensify, and the need for support measures becomes more urgent to prevent a further rise in fuel poverty. The increase in bills is a direct result of the volatility on global gas markets, and the rising costs will compound over the coming months as winter approaches, making the need for support measures more critical.

As the cap increases, the financial burden on households will continue to grow, and the need for policy interventions becomes more urgent to prevent a further rise in fuel poverty across Great Britain. The situation underscores the urgent need for action to address the rising costs and provide relief to vulnerable households, ensuring that the impact of global gas market volatility does not lead to a further increase in fuel poverty.

With the price cap rising to £1,862 a year, the financial pressure on households will continue to intensify, and the need for support measures becomes more urgent to prevent a further rise in fuel poverty. The increase in bills is a direct result of the volatility on global gas markets, and the rising costs will compound over the coming months as winter approaches, making the need for support measures more critical.

As the cap increases, the financial burden on households will continue to grow, and the need for policy interventions becomes more urgent to prevent a further rise in fuel poverty across Great Britain. The situation underscores the urgent need for action to address the rising costs and provide relief to vulnerable households, ensuring that the impact of global gas market volatility does not lead to a further increase in fuel poverty.

With the price cap rising to £1,862 a year, the financial pressure on households will continue to intensify, and the need for support measures becomes more urgent to prevent a further rise in fuel poverty. The increase in bills is a direct result of the volatility on global gas markets, and the rising costs will compound over the coming months as winter approaches, making the need for support measures more critical.

As the cap increases, the financial burden on households will continue to grow, and the need for policy interventions becomes more urgent to prevent a further rise in fuel poverty across Great Britain. The situation underscores the urgent need for action to address the rising costs and provide relief to vulnerable households, ensuring that the impact of global gas market volatility does not lead to a further increase in fuel poverty.

With the price cap rising to £1,862 a year, the financial pressure on households will continue to intensify, and the need for support measures becomes more urgent to prevent a further rise in fuel poverty. The increase in bills is a direct result of the volatility on global gas markets, and the rising costs will compound over the coming months as winter approaches, making the need for support measures more critical.

As the cap increases, the financial burden on households will continue to grow, and the need for policy interventions becomes more urgent to prevent a further rise in fuel poverty across Great Britain. The situation underscores the urgent need for action to address the rising costs and provide relief to vulnerable households, ensuring that the impact of global gas market volatility does not lead to a further increase in fuel poverty.

With the price cap rising to £1,862 a year, the financial pressure on households will continue to intensify, and the need for support measures becomes more urgent to prevent a further rise in fuel poverty. The increase in bills is a direct result of the volatility on global gas markets, and the rising costs will compound over the coming months as winter approaches, making the need for support measures more critical.

As the cap increases, the financial burden on households will continue to grow, and the need for policy interventions becomes more urgent to prevent a further rise in fuel poverty across Great Britain. The situation underscores the urgent need for action to address the rising costs and provide relief to vulnerable households, ensuring that the impact of global gas market volatility does not lead to a further increase in fuel poverty.

With the price cap rising to £1,862 a year, the financial pressure on households will continue to intensify, and the need for support measures becomes more urgent to prevent a further rise in fuel poverty. The increase in bills is a direct result of the volatility on global gas markets, and the rising costs will compound over the coming months as winter approaches, making the need for support measures more critical.

As the cap increases, the financial burden on households will continue to grow, and the need for policy interventions becomes

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