UK energy prices to rise 4% under October price cap

UK energy prices are expected to rise by 4% in October under a new price cap, driven by global market volatility linked to conflict in the Middle East. Government officials have indicated that further direct support for energy bills is unlikely before this increase, though they noted that more targeted measures could be considered in January if further shocks occur. The government previously removed VAT from domestic electricity bills to provide some relief.

Research from Citizens Advice highlights the growing impact of the energy crisis, revealing that 37% of households—approximately 10 million—are worried about affording energy bills this winter. The charity reports that 3.5 million households are currently in energy debt. Vulnerable groups, including those on means-tested benefits and people with disabilities, are disproportionately affected.

Citizens Advice is calling for a comprehensive support package, including a reformed Warm Home Discount that could save dual-fuel households on means-tested benefits approximately £400 per year. The charity also noted that many customers on prepayment meters are losing access to gas or electricity due to an inability to top up.