Commenting ahead of the January 2026 energy price cap increase, Energy UK’s Deputy Director, Policy (Customers), Ned Hammond said:
“While the new price cap coming into force only includes a small rise, it still means energy bills are too high for too many households. Gas prices may have declined in recent months but remain higher than previous years, while increasing policy costs are also adding to bills.
“So the Chancellor’s intervention in the Budget to move a significant amount of policy costs into taxation was welcome and will provide much needed relief for households across the country when this comes into effect in April.
“However, even with this intervention, energy bills are expected to remain well above pre-energy crisis levels. With over six million households in fuel poverty and domestic energy debt reaching record highs of around £5.5 billion, a comprehensive plan is needed to further bring down bills and truly address these challenges.
“Efforts to reduce electricity costs relative to gas must continue while the forthcoming Warm Homes Plan must set out how it will ensure millions more people can live in warmth and comfort – along with the Government working towards implementing a better targeted support scheme for customers who need the most help with bills.”
Notes to editors:
For more details, Energy UK has published this briefing explaining in more detail the factors behind the latest energy price cap rise.