Households face another winter squeeze as the latest energy price cap increase prompts a stark warning over the impact of rising bills on those already struggling.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “Price rises fall hardest on the households who can least afford them, with millions forced to pay more for the same energy or ration the energy they use even further.”
The campaign group says around five million UK households spend more than 20% of their income on energy.
Ofgem has confirmed the price cap will rise by 4% from October 1, adding around £60 a year to the typical household bill and taking it to £1,723.
But campaigners have warned that the headline figure does not tell the full story, with millions of households already facing difficult choices over how much energy they can afford to use.
Mr Francis added: “The Ofgem price cap may limit the unit rates and standing charges that consumers pay, but sadly it doesn't cap the number of people suffering due to rising energy costs.”
He said the latest increase was again being driven by the cost of gas.
“As with previous rises, it is the price of gas driving this latest increase. Every unit of gas used will be 27% more expensive than last winter and over 150% higher than at the end of 2020.”
The quarterly energy price cap will rise by 4% from 1 October 2026.
This will be an increase of around £5 per month for the average household.
This is a cap on energy unit price plus standing charge, not a cap on total bills.
More ⬇️ https://t.co/ZDoHTH34eV pic.twitter.com/WcQtRrgiMe— Ofgem (@ofgem) August 26, 2026
Millions could be forced to 'ration' energy
Francis warned that the impact of higher prices would be felt most severely by households already struggling to pay their bills.
He called for the Government to go further with support for struggling households, including help with energy debt and improving the efficiency of homes.
“Cutting VAT on electricity and last year’s extension of the Warm Home Discount was a start, but Ministers need to go further and faster in helping people.
"That means further expansion of support programmes, funding a proper energy debt relief scheme and a serious push to improve energy efficiency of the homes that need it the most.”
He also highlighted the profits being made by energy companies.
“Yet as around five million households in the UK spend more than 20% of their income on energy, just a handful of energy firms have made more than £6 billion in UK-generated profits this year alone.”
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What does the October energy price cap mean?
The £1,723 figure is not a maximum annual bill. It is based on a typical household's energy use and represents the maximum unit rates and standing charges suppliers can charge customers on standard variable tariffs.
Households that use more energy will pay more, while those who use less will pay less.
Ofgem's latest increase comes as households prepare for the colder months, when energy use typically rises as heating is switched back on.
Have you switched tariffs or rationed energy? Tell us in the comments below...
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