Ofgem has confirmed a 10% increase in the energy price cap from 1 October, raising the figure for a typical household in England, Scotland and Wales from £1,568 to £1,7171. The End Fuel Poverty Coalition put the change in cash terms at an average increase of £149 from 1 October1.
The coalition said its own analysis found that, in real terms, the changes this winter mean some older people will face the highest energy bills on record, and that bills for the winter ahead are confirmed as being 65% above where they were before the crisis1. It also pointed to a detail in Ofgem's published summary of changes: the profit margins energy suppliers are allowed to make will increase by 11%1.
"To add insult to injury, in the detail of today's Ofgem announcement is the fact that the profit margins energy suppliers are allowed to make will increase by 11%."
Warm This Winter spokesperson Fiona Waters said energy companies had made more than £470 billion since 2020, and that the price rise was a further blow to households in fuel poverty1. Richard Kramer, chief executive of the disability charity Sense, said the increase would be alarming for many disabled households facing unavoidable extra energy use for essential equipment such as powered chairs and feeding machines, and called for a social energy tariff1.
The coalition called for action on several fronts: ending energy debt, extending the Household Support Fund, expanding Warm Home Discounts and evolving standing charges, alongside a clear timetable for the benefits of cheaper renewable energy and the Warm Homes Plan1. It also said the wider energy industry should be taxed fairly, not only fossil fuel producers1.
| Item | Figure |
|---|---|
| Price cap, typical household, England, Scotland and Wales, current | £1,568 |
| Price cap from 1 October | £1,717 |
| Increase | 10%, or £149 on the average household bill |
| Change in allowed supplier profit margin | up 11% |
Why it matters for households
The cap sets the maximum a supplier can charge per unit of gas and electricity, and the standing charge, on a default or standard variable tariff, so the October figure flows directly into what a household pays for each unit it uses1. A household using more energy than the typical one will pay more than £1,717, and one using less will pay less; the figure is not a cap on the total bill.
The 11% rise in allowed profit margins sits inside the same announcement, meaning part of what households pay reflects a higher permitted margin for suppliers rather than wholesale costs alone1. For a home trying to reduce its exposure to volatile prices, the levers remain the same: how much energy is used, how the account is paid, and whether the property is efficient enough to need less of it. The coalition's call for a timetable on the Warm Homes Plan and renewable energy benefits points to the efficiency side of that equation, which has not been given dates in this announcement1.
What happens next
The new cap takes effect from 1 October1. The coalition's requests, including a social energy tariff, an extension to the Household Support Fund and expanded Warm Home Discounts, are calls on government rather than confirmed measures, and no timetable for them has been reported1.
Sources1 cited
- Energy bills up as some pensioners face worst prices on record - End Fuel Poverty Coalition, endfuelpoverty.org.uk