UK Energy Price Cap Rises to £1,862 Annually, Steepest Summer Increase in Four Years

The UK energy price cap rose to £1,862 annually, an increase of more than £220 that marks the steepest summer rise in four years, GB News reported. The change follows months of turbulence in global gas markets. An estimated 13.5 million homes in Great Britain now spend more than a tenth of their income on energy, up from 11.3 million in April, according to analysis by the End Fuel Poverty Coalition using University of York research.

Nearly 5.5 million households spend around a fifth of income on bills, compared with 4.3 million three months earlier. Under the regulator's revised methodology, typical annual household energy spending stands at £1,663. Electricity charges for direct-debit households increased from 24.67p to 26.11p per kWh, while gas prices rose from 5.74p to 7.33p per kWh.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said the figures show a growing number of households spending an unsustainable share of income to heat homes in winter and keep them cool in summer. He added that households are unlikely to rebuild finances before colder weather arrives, as summer cost increases will wipe out any chance to reduce debts or build reserves.

Unite is organising demonstrations across the country calling for significant cuts to energy prices and the return of energy companies to public ownership.

Sharon Graham, the union's general secretary, said the cap increase is another kick in the teeth for workers and families already struggling with rising bills and the cost-of-living crisis. Cornwall Insight forecasts annual bills could fall to around £1,654 from October under the updated methodology, a 0.5 per cent reduction from current levels.

Andy Burnham outlined plans to devolve control of essential services including energy to local leaders during his first major public address on Monday.