- Average dual fuel bill will rise by £149 a year from October under new price cap
- New cap is £117 cheaper than same period last year
- Charities warn that means testing of winter fuel payments will leave some pensioners struggling to heat their homes
Danni Hewson, AJ Bell head of financial analysis, comments on the latest changes to the energy price cap:
“Just when temperatures begin to plummet and nights draw in, households will be faced with the exact scenario they’d hoped was behind them.
“Energy prices might not be heading back to where they were in 2022, and they might not even be creeping back to where they were last autumn, but for many people having to find an extra £149 a year will be akin to pouring fresh salt on healing wounds.
“For around 10 million older people who are also faced with having to make do without their winter fuel payments, it adds insult to injury. Some pensioners will be able to manage, but others will find the winter months particularly tough.
“Inflation might now be hovering around ‘normal’ levels, but the price hikes experienced over the past couple of years have dented people’s standard of living and they will be faced with another winter where they’re having to watch thermostats like a hawk. And there are already warnings that January could bring another small increase to energy prices.
“Just under a million low-income pensioner households could find they’re eligible for pension credit and therefore winter fuel payments, but there are many more who have already deployed all the tricks to keep bills down and will be hoping temperatures over the next six months will stay mild.
“There are now opportunities for households to fix their bills or switch to other providers, but consumers need to read the small print carefully because many come with exit penalties. What’s clear is that we are going to have to get used to bills remaining elevated as global energy markets remain volatile.”
