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Energy bills in Great Britain forecast to jump by £276 a year from January

Cornwall Insight said the rise would add about £276 a year to a typical bill and deepen pressure on ministers to help struggling households.

  • Consultancy Cornwall Insight forecasts typical UK household energy bills will rise 16% in January, a £276 jump pushing annual costs to £1,999. The increase marks the largest rise in four years, hitting millions during winter.
  • Ongoing conflict in the Middle East has disrupted gas supplies, causing low storage levels across Europe. Forecasters warn rebuilding stocks could keep bills high "well beyond the winter," extending financial strain beyond seasonal patterns.
  • Under Ofgem's price cap, typical household bills will rise 4% on Thursday, equivalent to about £60 annually. Government VAT cuts mitigate impact by roughly £45 yearly, providing partial relief before January's larger forecast increase.
  • EDF Energy chief executive Simone Rossi warned the UK is "walking into a second energy crisis," urging ministers to extend VAT cuts and approve new gas projects. Customers collectively owe more than £5bn in unpaid energy bills, intensifying financial pressure.
  • Prime Minister Andy Burnham acknowledged energy costs remain "very difficult indeed," stating the government seeks measures providing breathing space. Adam Scorer, chief executive of National Energy Action, warned the burden is "unsustainable, not just for households but also for the market as a whole.
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BBC News broke the news in London, United Kingdom on Wednesday, September 30, 2026.
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