New Ofgem price cap will see annual household energy bills rise by £144

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New Ofgem price cap will see annual household energy bills rise by £144
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Household energy bills will increase by 10 per cent from the current £1,568 to £1,717 from October 1, 2024.

Ofgem has announced household energy bills will rise by 10 per cent from the start of October. The sector regulator confirmed on Friday morning that annual energy bills for millions of households on the standard tariff, with typical average usage, will rise from £1,568 to £1,717 from October 1 - an increase of £149 over the coming year.

The new price cap is around £117 cheaper than the cap in October last year, which was set at £1,834. Households will pay around £11 extra each month for gas and electricity usage from October. “Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.”

Richard Lane, Chief Client Officer at StepChange Debt Charity, said: “While some households may not have felt the squeeze quite as much in recent months due to the warmer summer weather and a slight fall in the cost of energy, for many - particularly those on the lowest incomes - affording energy bills each month remains uncertain.

Winter heating bill help Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group, said: “The news follows the Government’s announcement the winter fuel allowance for pensioners will be means tested from this winter, with only pensioners claiming Pension Credit or other means-tested benefits eligible.

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