By The Telegraph (World News) | Created at 2024-11-22 07:10:13 | Updated at 2024-11-22 12:54:26
5 hours ago
Household energy bills will jump by £21 from January in a fresh blow for millions of pensioners who face the loss of winter fuel payments.
Ofgem’s announcement on Friday means the price cap will rise from £1,717 a year for a typical dual-fuel household paying by direct debit to £1,738 from January 1.
There had been hopes that the price cap would be unchanged or even decline but predictions of a cold winter are instead pushing global gas prices upwards.
The increase will add to growing pressure on Labour over its decision to cut the winter fuel allowance of £300 so that only pensioners eligible for other benefits get the handout. The change means an estimated 10 million households will lose out on the benefit.
Newly published government analysis has found that the measure could force 100,000 pensioners in England and Wales into relative fuel poverty this year. The analysis was published earlier this week just as temperatures plunged and parts of the UK experienced their first snowfall of the year.
Analysts Cornwall Insight have warned prices are unlikely to fall significantly in the future: “Despite prices stabilising in comparison to the past two years, the market remains very sensitive to global events. This is leaving prices substantially above historic averages.”
It predicts that the cap may drop in April 2025 and again in October 2025 - but only slightly and subject to global tensions.
Read the latest updates below.
