Energy bills to grow by more than £200 a year for millions as Ofgem increases price cap – business live | Business

The most vulnerable households will be hit the hardest by the higher energy price cap, charities and campaigners have warned this morning.

Caroline Abrahams, director at the charity Age UK, says:

We know that today’s price cap increase is the shape of worse to come when the next price cap is announced, because by then the impact of the war in the Middle East will really be feeding through into prices.

Unfortunately, these elevated energy costs due to the war will hit just at the time when pensioners will need their heating the most, as we head into winter. This is why it is so important that the government puts together an effective plan now to help older people on low incomes to get through the coming winter unscathed. It’s imperative that we avoid a repeat of the 2024/5 winter, when millions of older people were cold in their own homes.

Support has failed to keep pace with rising energy costs and is insufficient for the scale of the financial challenge that significant numbers of people will face this winter. Age UK believes that the government should increase the value of the Warm Home Discount scheme for this winter from £150 to at least £200. They should also widen the eligibility beyond those in receipt of means-tested benefits to cover households on low incomes, so support can reach older people who are struggling but who currently miss out.

Simon Francis, of the End Fuel Poverty Coalition says:

Behind every energy price rise are households whose direct debits are about to rise, families whose energy debt is harder to clear, and pensioners whose summer is already overshadowed by the winter ahead. Meanwhile, the energy industry has posted more than £3 billion in profits from its UK operations in the first three months of 2026.

With energy costs rising over the summer, any chance households had to reduce energy debts or build up reserves before the winter heating season will be wiped out.

We are also worried that energy firms will now factor higher costs into direct debit calculations, meaning many households will feel the financial impact of winter long before October.

That concern is sharpened by forecasts suggesting the October cap could remain at a similar level, leaving millions of households facing an extremely difficult year ahead if nothing changes.

…The government cannot wait until September to act. It must confirm what support will be available, address the fact that relying on gas for heating is a dead end as the North Sea runs dry and chart a path for households to find a permanent way off the gas price rollercoaster.

Adam Scorer, chief executive of National Energy Action, says:

As always, the most vulnerable will bear the brunt. Low-income households are stuck on this rollercoaster of global energy prices. For them this is not a one-off price increase. It is an unrelenting pressure that builds and builds and builds, resulting in unprecedented numbers owing around £5.5 billion in energy debt and rationing their energy usage.

With another tough winter coming, and bills expected to stay high, now is the time for the government to set out targeted interventions to help those on the lowest incomes afford their energy and to clear their debt. The government can also do more to streamline referral routes for fuel poverty support for both households with young children and those with serious health conditions.