UK energy price cap jumps 4% in October, raising average household bills

Ofgem has lifted the UK energy price cap by 4% for the October period, setting the average annual bill for about 22 million households at £1,723, up from £1,663 in the previous quarter. The rise mirrors a 13% jump in July and is driven by global market spikes tied to the war on Iran and higher costs for upgrading the national grid. Unit rates for electricity and gas will increase, while the electricity standing charge falls because of the government's VAT exemption on electricity.

Around one-third of consumers on fixed-rate contracts will not be affected by the change. Ministers and consumer advocates, including the energy secretary, the mayor of Greater Manchester, and the head of Citizens Advice, highlighted the strain on households and called for further steps to curb unaffordable bills.