Millions of households in Great Britain are experiencing a 4% rise in energy charges from Thursday, 1 October 2026, pushing the average annual bill for a typical home to £1,723. This increase brings the quarterly energy price cap, set by regulator Ofgem, to its highest point in three years.
Chancellor John Healey is under increasing pressure to announce new energy support for households in the upcoming budget, scheduled for 28 October. Speaking at Labour’s conference this week, Healey stated that the government has limited resources to mitigate global economic shocks and emphasised fiscal discipline for his budget.
The rise in bills comes despite Prime Minister Andy Burnham's decision to cut VAT from electricity bills, which was intended to save the average household £45 a year from 1 October. Households are also contending with rising road fuel costs, as diesel prices recently reached a record high of almost £2 a litre.
A coalition of campaigners, charities, trade unions, and thinktanks, including the New Economics Foundation and the Joseph Rowntree Foundation, have urged the Chancellor and Energy Secretary Miatta Fahnbulleh to implement a package of universal energy support and targeted measures. Energy Secretary Fahnbulleh acknowledged the impact of price rises and stated that the VAT cut would offer some "breathing space," making the energy price cap £45 a year less than it would have been.