Ofgem raises energy price cap by 4% for winter
Ofgem has increased the energy price cap by 4% for October to December, adding £60 to typical annual bills.
The Full Story
A plain summary built from the channels that reported this story.
The energy regulator Ofgem has announced a 4% increase in the price cap for household gas and electricity, pushing typical annual bills to £1,723 from October. The rise, which adds around £60 a year for a typical dual-fuel household, comes as wholesale gas prices have climbed because of the conflict in the Middle East and reduced flows through the Strait of Hormuz. The new cap, which applies to customers on standard variable tariffs, will affect around 22 million households in England, Scotland and Wales. Those on fixed deals are not affected.
The increase is the second in a row, following a 13% rise in July, and analysts are forecasting another jump of around 9% in January. The government has tried to soften the blow by cutting VAT on electricity bills from October, saving the average household about £45 a year, but that is not enough to offset the rise. Energy debt has reached a record £6 billion, and charities are calling for a social tariff to protect the most vulnerable.
Consumers are being advised to check whether they can switch to a fixed tariff, with some deals offering savings of more than £100 against the new cap. The regulator and suppliers say help is available for those struggling to pay, including payment plans and the Warm Home Discount, which pays £150 to six million households. But with winter approaching and prices expected to stay high, many families face a difficult few months.
The political debate is also heating up. The government's promise to cut bills by £300 by 2030 is under scrutiny, and opposition parties say more immediate action is needed. Ministers argue that the long-term solution is to move away from gas and invest in renewable energy, but the upfront costs of that transition are already reflected in higher electricity prices.
On screen
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Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | Channel 5 | BBC News | BBC One | BBC Two | Channel 4 | ITV | Sky News |
|---|---|---|---|---|---|---|---|
| Ofgem increased the energy price cap by 4% for October to December. | · | ||||||
| A VAT cut on electricity bills will take effect in October, providing some relief. | · | · | · | · | |||
| A further 9% rise in energy prices is predicted for January. | · | · | · | · | · | ||
| Energy debt has reached a record £6 billion. | · | · | · | · | · | ||
| The increase was attributed to higher wholesale gas prices, partly due to the war in Iran. | · | · | · | · | · | ||
| 22 million households will be affected by tariffs linked to the energy price cap. | · | · | · | · | · | · | |
| A VAT cut saves £45 but is considered insufficient. | · | · | · | · | · | · | |
| Forecasts indicated energy bills would remain high into January. | · | · | · | · | · | · | |
| Household energy debts were forecast to reach £7 billion. | · | · | · | · | · | · | |
| Six million households would receive a £150 warm home discount. | · | · | · | · | · | · | |
| The government's manifesto promise to cut energy bills by £300 is under threat. | · | · | · | · | · | · | |
| The VAT cut on energy is funded for only six months. | · | · | · | · | · | · |
Channel Perspectives
What each channel focused on, with key quotes.
BBC News provided a straightforward news report with expert analysis and practical advice. They highlighted the reasons for the rise, the impact on households, and included a spokesperson from Uswitch advising customers to consider fixed tariffs. They also noted the VAT cut and the regulator's explanation.
- “So it's gone up by 4%, which is expected, aligned with expectations.”
- “So the price cap is a cap or a limit on the amount providers and suppliers can charge per unit of gas and electricity and the standing charge.”
Sky News used data visualisation and the economic pressure tracker to explain the rise, focusing on the unit price increases and the role of gas prices. They also highlighted the forecast for further increases and the record energy debt, and included a clip of the Prime Minister.
- “Millions of households across the country are facing fresh winter fuel misery”
- “The average annual energy bill is now set to jump by £60 a year for a typical household”
BBC ONE West focused on the human impact, with interviews with the public and a charity, highlighting the record energy debt and the call for a social tariff. They also mentioned the forecast for January and the effect on vulnerable households.
- “It's another energy bill hike this autumn.”
- “We are calling on the government to implement a social tariff as quickly as possible”
ITV1 focused on the consumer angle, with Chris Choi reporting, highlighting the options to switch to fixed tariffs and the Warm Home Discount. They also mentioned the forecast for January and the political response, and included a customer's reaction.
- “Typical energy bills for millions of households in England Scotland and Wales will hit a three-year high under the new price cap”
- “The cheapest fixed tariff we're seeing at the moment is actually offering savings of £173 against the October price cap”
5 News focused on the human stories, with a community cafe and people struggling to pay. They gave practical advice and mentioned the Warm Home Discount, and highlighted the emotional toll of rising bills.
- “Unfortunately Ofgem confirmed today its price cap will increase by four percent in october”
- “I'm gonna freeze it's that simple”
Channel 4 focused on the political angle, with an interview with the minister Polly Billington, and the impact on pensioners. They highlighted the government's promise to cut bills by £300 and the challenge of meeting it, and questioned the minister directly.
- “Dreadful. I think it's absolutely dreadful.”
- “We will always do everything that we can to reduce bills by as much as possible.”
BBC TWO's Newsnight discussed the political implications, with a panel debating the government's response and the long-term energy strategy. They highlighted the gap between the manifesto promise and the actual rise, and questioned whether the government is reacting rather than planning.
- “Liz Truss paid people's gas bills. Do you think the stakes are as high for Labour if prices keep going up?”
- “Labour promised me in the manifesto they'd reduce bills by £300 and now they're going up by £400”
Broadcast Timeline
News broadcasts tracked for this story, in time order.