Household energy bills set to rise which will be ‘a challenge for too many households’

Ofgem has confirmed on Friday household energy bills will rise again from 1 January 2025 by 1.2% on the price cap.

Ofgem said the rise will see a dual fuel bill for a typical household rise from £1,717 to £1,738, this comes after there was a 10% increase in October.

Tim Jarvis, director general of markets at Ofgem, said, “While today’s change means the cap has remained relatively stable, we understand that the cost of energy remains a challenge for too many households.

“However, with more tariffs coming into the market, there are ways for customers to bring their bill down so please shop around and look at all the options.

“Our reliance on volatile international markets – which are affected by factors such as events in Russia and the Middle East – means the cost of energy will continue to fluctuate.

“So it’s more important than ever to stay focused on building a renewable, home-grown energy system to bring costs down and give households stability.

“In the short-term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need and look around to make sure they’re on the best, most affordable deal for them.”

Caroline Abrahams, charity director at Age UK, said, “Older people, struggling without their winter fuel payment, who were praying for a reduction in energy prices to help them in the New Year, will be bitterly disappointed today.

“The news that the energy price cap is instead slightly rising is the latest in a series of blows for pensioners living on a low or modest income, who do not receive Pension Credit because they don’t claim it or are not eligible.

“There are millions of older people in this situation and we know that many are hoping against hope that something will turn up to help ease their situation over the next few months, when the weather is at its coldest.

“If you are an older person for whom every penny counts, managing your energy bills until the rise in your State Pension starts coming through from April just got harder.”

National Energy Action chief executive Adam Scorer said: “Today’s news that the price cap is rising by 1.2% will impact millions of vulnerable households. Bills are around 50% higher than pre-crisis levels.

“With temperatures now plunging and far less support available many are getting deeper into debt trying to keep warm. Now we know there will be no let up into January and beyond. Targeted government support is essential to save millions from the misery and danger of a cold home.”