Energy bills forecast to rise by £85 from April 2025

In the UK, energy prices are set to increase again, with forecasts suggesting a rise of 5 percent or £85 in annual household bills starting in April 2025. This forecast, provided by Cornwall Insight, indicates that the typical annual energy bill will reach £1,823. The increase marks the third consecutive rise in the energy price cap, a regulation updated quarterly. This trend has resulted in a total increase of over 16 percent since September 2023. The energy price cap adjustments are reflective of rising energy costs, which have put significant pressure on households and contributed to inflation in recent months. Economic experts warn that further increases may occur later in the year, despite a potential minor drop in prices projected for July 2025. The energy consultancy Cornwall Insight has cautioned that trends in energy pricing are unlikely to improve as 2025 progresses. Public sentiment is likely to be affected by these continuous increases, as households face challenges in managing finances amidst rising living costs. The impact of increased energy bills has already been felt through intensified inflationary pressures, making it essential for both consumers and policymakers to prepare for financial adjustments. The forthcoming price adjustments will mean that many British households must adjust their budgets and spending habits to accommodate the increased energy expenditure. In conclusion, the rise in energy prices reflects not just a change in tariffs but influences the broader UK economic landscape, affecting inflation rates, consumer spending, and overall economic stability. The continuing adjustments in energy prices will require a close watch as the situation unfolds throughout the year.