Ofgem has confirmed that the energy price cap will rise once again in the New Year in a devastating cost of living blow for consumers.
The typical energy bill for households on a variable rate tariff will increase to £1,738 a year between January and March 2025.
This represents an increase of £21 or 1.2 per cent from the cap currently set by the UK’ energy regulator. As such, households will pay £1.25 more a month. Earlier this year, Ofgem’s energy price cap plummeted to £1,568 earlier this year in a welcome sign for households struggling to keep up with the cost of living crisis.
However, the cap went up by 10 per cent on October 1 to its current level of £1,717 per year with this trend looking set to continue for the foreseeable future.
Despite this most recent hike to Ofgem’s cap, it remains 10 per cent, or £190 cheaper, compared to January to March 2024, and 57.2 per cent than the £2,321 posted for January to March 2023.
Over the last couple of years, households have been forced to contend with soaring energy prices which have resulted from wholesale pressures on the gas and electricity market and the fallout of Russia’s illegal invasion of Ukraine.
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Ofgem’s price cap rise means people will pay towards their energy bills
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Campaigners are urging the Government to do more to tackle fuel poverty as families continue to face energy bills “50 per cent higher than pre-crisis levels”.
Fuel poverty is the term used to describe when people are unable to adequately heat their home without using a larger portion of their disposable income.
These calls to action come following the Chancellor’s decision to means-test Winter Fuel Payments, a previously universal benefit for pensioners.
Now, older Britons need to be in receipt of Pension Credit and other benefits to access the up to £300 in energy bill support.
Adam Scorer, National Energy Action’s chief executive, broke down what is at stake for Britons following today’s latest announcement from Ofgem.
He explained: “Today’s news that the price cap is rising by 1% will impact millions of vulnerable households. Bills are around 50 per cent higher than pre crisis levels.
‘With temperatures now plunging and far less support available many are getting deeper into debt trying to keep warm.
“Now we know there will be no let up into January and beyond. Targeted government support is essential to save millions from the misery and danger of a cold home.”
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