- New energy price cap will rise to £1,928 a year from January
- That will add £94 a year to an average direct debit dual fuel energy bill
- The increase is because of rising wholesale costs
Danni Hewson, AJ Bell head of financial analysis, comments on the latest energy price cap rise:
“It’s a timely reminder that inflation might be falling but some prices are still rising.
“For households still trying to work out what yesterday’s Autumn Statement means for their finances, the news their energy bills are going up once again from January will be a bitter pill to swallow.
“Whilst it might work out at just £7.83 a month, that extra cost comes on top of all the other extra costs and doesn’t come with the government help many families relied on this time last year.
“So far this winter has been relatively mild, but that’s not likely to last. All those energy savings tips that have helped people limit their usage only go so far and turning down the thermostat by another degree will just mean unpleasantly cold rooms.
“For working people, the cut in National Insurance has been brought forward to January which will help offset this rise, but pensions and benefits don’t go up until April and whilst the latest cost of living payment has just landed in the accounts of those on the lowest incomes, that’s probably already been spent or at least earmarked to deal with other cost pressures.”
How Ofgem’s price cap has changed
