The average household energy bill is to increase by £149 from 1 October after Ofgem said it was hiking its price cap by 10% from the current £1,568 for a typical household in England, Scotland and Wales to £1,717.
Meanwhile, analysis by the End Fuel Poverty Coalition has found that in real terms, the changes this winter mean that some older people will face the highest energy bills on record.
A spokesperson for the End Fuel Poverty Coalition, commented:
“With energy bills for the winter ahead now confirmed as being 65% above where they were before the crisis, the Government needs to come up with a plan to prevent even more households entering fuel poverty this winter.
“Ending energy debt, extending the Household Support Fund, expanding Warm Home Discounts and evolving standing charges would all help mitigate the impact of high bills and the axe to the Winter Fuel Payment.
“But as well as support this winter, the public need to see a clear timetable for when the very real benefits of cheaper renewable energy and the Warm Homes Plan will kick in.
“To add insult to injury, in the detail of today’s Ofgem announcement is the fact that the profit margins energy suppliers are allowed to make will increase by 11% [pdf, page 4].
“Add to this that every month we hear about more massive profits for firms in the wider energy industry. It’s time to tax these firms fairly – not just the fossil fuel producers – and use the money to keep people warm now and in the long term.”
Warm This Winter spokesperson Fiona Waters said:
“This price hike is yet another blow to the millions in fuel poverty who, like every other bill payer in the UK, are still forking out 65 percent more than they did for their energy than at the start of the crisis.
“Meanwhile energy companies have been profiteering, making more than £470 billion since 2020. That shows there is money in the system but that is going to energy bosses and their shareholders, when it needs to go to ordinary people.
“Today just highlights the Government’s policies on renewables and energy efficiency are needed to mend this broken system but we also need help now to get everyone of all ages through the winter ahead.”
Richard Kramer, Chief Executive of the national disability charity Sense, said:
“This increase in the energy price cap will be very alarming for many disabled households, who face unavoidable extra energy use for essential equipment such as powered chairs and feeding machines. This is a stark reminder that the cost-of-living crisis is far from over, and disabled households still need extra support.
“We would like the government to implement a social energy tariff, which would help level the playing field for disabled people who rely on energy-intensive equipment. Disabled people cannot be left waiting any longer for targeted help with their energy bills.”
More reaction to follow