Energy bills will cost more for 7.2 million households this winter despite an expected fall in the price cap, analysis finds
- Partly due to £400 energy support payments not being available this year
A third of households face spending more on energy this winter than last year despite an expected fall in the price cap for gas and electricity, according to a think-tank.
Analysis by the Resolution Foundation suggests that while the cost per unit of energy is coming down, 7.2 million – or 35 per cent of homes – in England will spend more.
That is partly because the £400 energy support payments given to all households by the government last year will not be available.
In addition, the so-called daily ‘standing charge’, a flat fee charged to all users, will be higher.
The report comes ahead of an announcement on Friday by regulator Ofgem on the energy price cap level from October.
Analysis by the Resolution Foundation suggests that while the cost per unit of energy is coming down, 7.2 million – or 35 per cent of homes – in England will spend more
The rise this winter is in part blamed on the £400 energy support payments given to all households by the government last year not being available
The cap on the per-unit cost of gas and electricity – which soared last year after Russia’s invasion of Ukraine – is expected to fall, as wholesale energy costs have come down.
Latest analysis by consultants Cornwall Insight suggests that will cap typical households bills at £1,925, down from the current level of £2,074.
But the Resolution Foundation said the headline figure would mask a wide variation in the impact on households.
Those who use the most energy will see the biggest falls – enough to offset the removal of government help and higher standing charges.
But those who use relatively little will face higher bills this winter than last, the think-tank found.
Jonathan Marshall, senior economist at the Resolution Foundation, said: ‘More than one in three households across England will be shocked to discover that their energy bills could actually be higher this winter than last winter.
‘This increase will be particularly acute for England’s poorest families, a quarter of whom will spend at least £100 more on energy bills this winter compared to last year.’