Energy bills rise by £149 for average British household

Prices rise today

A household in England, Wales and Scotland using a typical amount of gas and electricity will now pay £1,717 a year which is approximately £149 more per year.

Experts have encouraged people to submit their meter readings as soon as possible so they can avoid being charged on estimated usage at the higher rate.

The price hike comes as winter approaches without cost-of-living payments for those on low incomes and as winter fuel payments have controversially been withdrawn for about 10 million pensioners.

Energy prices for about 27 million homes in England, Wales and Scotland are governed by a price cap which is calculated by the energy regulator Ofgem.

It is set every three months and affects the price paid for each unit of gas and electricity.

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Under the cap, prices have fallen twice this year but at the start of October, they have increased by around £12 a month for a typical user.

Standing charges have risen by one penny a day for gas and for electricity but the regulator is considering reforming the system.

The price cap is illustrated by Ofgem in terms of an annual bill for a household using a typical amount of gas and electricity.

The annual bill is lower than last winter, but charities are concerned that many people will still struggle to cover costs especially given the cut in support.

The final cost-of-living payment was made to eight million people on means-tested benefits in February this year.

Furthermore, the previously universal winter fuel payment provided to pensioners, worth up to £300, will now be paid only to those on low incomes.

Some households have built up debt to their suppliers as well with Ofgem confirming that nearly £1.7bn is owed collectively.

Steve Vaid, chief executive of the Money Advice Trust, the charity that runs National Debtline, said: "This only highlights what we have been saying for some time - without urgent support for households facing unaffordable arrears, energy debt will only rise further."