Energy Bills Set to Rise as Ofgem Increases Price Cap

Ofgem has announced a significant increase in the energy price cap, which will rise by 10% from £1,568 to £1,717 for a typical dual-fuel household starting October 1. This translates to an average annual increase of £149, leaving households facing higher energy costs as they head into winter. Although this new cap is £117 lower than last year's October cap of £1,834, it still represents a substantial financial burden for many families already grappling with rising living costs. The rise in energy prices has sparked concern among financial analysts and advocacy groups. Danni Hewson from AJ Bell highlighted that while energy prices are not returning to the peaks seen during the 2022 crisis, the additional £149 will strain household budgets. Citizens Advice has expressed particular concern for low-income families, especially those with children, urging the government to implement targeted support measures to alleviate the financial pressure. In a related development, the government’s decision to means-test winter fuel payments has come under fire, with around 10 million pensioners set to lose out on this vital support. Critics, including Labour MPs, argue that this policy change could leave vulnerable older individuals at risk during the winter months, especially with rising energy costs. Shadow Energy Secretary Claire Coutinho criticized the government for not being transparent about its plans, which could leave many pensioners unprepared for the upcoming price hikes. As the energy crisis continues, calls for a reassessment of government policies and increased support for those most affected are growing louder. With the energy price cap set to rise, many are left wondering how they will manage their bills this winter.