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United Kingdom·Energy·Trade & Economy

UK energy bills rise 4% as pressure grows on chancellor for budget support

Thursday, 1 October 2026, 06:13 · 1 min read

Household energy bills in Great Britain rose 4% on Thursday to an average of £1,723 a year, the highest level of the regulator Ofgem's price cap in three years, despite a six-month VAT cut on electricity that saves the typical home about £45. Chancellor John Healey faces mounting pressure from some Labour MPs, charities, unions and thinktanks to include fresh support in the 28 October budget, though he and Prime Minister Andy Burnham have stressed limited public funds. The issue matters because forecaster Cornwall Insight expects a further 16% rise in January to £1,999, driven by higher global oil and gas prices linked to the Middle East war, deepening the cost of living squeeze.

Sources
The Guardian — Healey urged to offer energy support in budget as bills rise 4% ↗︎
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