News

Energy prices for millions of households will rise to the highest level for three years, under regulator Ofgem's price cap.

Ofgem said the price cap will increase by 4% on 1 October, driven by higher wholesale gas prices due to the Iran war.

A household using a typical amount of gas and electricity will pay £60 a year more, but more than a third of households are on fixed tariffs so their prices will not change.

The government said its cut to VAT on electricity bills will save households £45 and it was doing more to address cost of living pressures, but opposition parties said Labour was not doing enough.

The new cap will hit household bills as the colder weather arrives in October.

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