UK energy price cap jumps 13% in July as households brace for higher bills

Ofgem announced that the household energy price cap will rise by 13 percent – an increase of £18 a month – from 1 July, taking the average annual bill to £1,862 for consumers using both electricity and gas. The hike follows a sharp surge in global energy costs triggered by Middle‑East tensions, including Iran’s blockage of the Strait of Hormuz. Analysts say the recent US‑Iran cease‑fire and the reopening of the shipping route should ease wholesale prices, so the cap is expected to remain steady in October.

Ofgem data show energy‑supplier debt has hit a record £4.79 billion, a 5 percent rise on the previous quarter and 15 percent year‑on‑year, highlighting mounting pressure on households. Good Energy chief executive Nigel Pocklington called on the incoming UK prime minister to reform the market, proposing to shift policy costs off bills, uncouple gas and electricity pricing, and use Bank of England loans to spur clean‑energy investment – measures he estimates could shave £158 off a typical bill each year. The proposals come amid political uncertainty after Keir Starmer’s resignation and Chancellor Rachel Reeves’ indication that autumn support may be considered if prices stay high.