UK Energy Bills Set to Reach Three-Year High This Winter

London, United Kingdom Aug 27, 2026 ALN: The SNP have accused Andy Burnham of breaking his promise to bring down the cost of living as household energy bills are set to rise to a three-year high this winter.

Regulator Ofgem announced on Wednesday morning that its energy price cap will increase by 4%, with the typical household paying £60 more a year from October.

The cap will rise to £1723 for the average household using both electricity and gas if that level was sustained for a year – an increase of around £5 a month.

The announcement means energy bills have now risen seven times since Labour came to power despite previous promises to reduce bills by £300.

: Andy Burnham completely avoids Scotland on UK 'listening tour'

SNP Westminster leader Dave Doogan said: "Just one month into the job and Andy Burnham has already broken his promise to cut the cost of living – as household bills soar on his watch in Broken Brexit Britain.

"Energy bills have risen seven times under this Labour Government. They are now a whacking £563 higher than the Labour Party promised during the election and, instead of reducing the cost of living, like he pledged, Andy Burnham is presiding over yet another big hike in prices.

"It's no wonder the Prime Minister ended his cost of living 'listening' tour early and failed to stop off in Scotland. People don't want to be used for Andy Burnham's TikTok content while their bills rise to a three-year high – they want money in their pockets and urgent help now."

The increase comes as households prepare for colder weather and greater use of heating, with the new cap coming into effect on October 1 and remaining in place for three months.

Dave Doogan said the rise showed Scotland remained exposed to high energy prices despite its energy resources (Image: UK Parliament)

And there could be another significant increase in the New Year.

Analysts at Cornwall Insight forecast on Wednesday that the price cap could rise by a further 9% in January, taking the typical annual bill to £1872 – £149 higher than the October figure.

: What problems is the AI data centre boom causing worldwide?

Ofgem have said the latest increase reflects higher wholesale gas prices resulting from volatile international markets.

Neil Kenward, Ofgem's director general for markets, said: "High international gas prices are continuing to drive energy costs in the UK.

"We welcome the Government's intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter.

"Savings are available by choosing a fixed tariff, which are available at £100 or more below the October price cap, and many suppliers offer tariffs with cheaper electricity to smart meter customers for electricity consumed out of peak times."

Energy Secretary Miatta Fahnbulleh acknowledged families would be concerned about the increase but defended the rise.

"Energy is an everyday essential and it needs to be affordable for everyone, which is why we have cut VAT on electricity bills from October, to give families some breathing space," she said.

Andy Burnham pledged to cut the cost of living (Image: Carl Court)

"This has limited the rise in the price cap and follows the £150 in costs we removed from bills earlier this year, and we will keep looking at what more we can do to protect families from unaffordable bills."

The End Fuel Poverty Coalition (EFPV) have warned that the rise in gas prices will have a particularly severe impact on households.

Gas unit rates are set to increase from 6.29p per kWh last winter to 8p from October 1 – a rise of around 27% year on year and the highest level since early 2023.

Simon Francis, coordinator of EFPV, said: "The Ofgem price cap may limit the unit rates and standing charges that consumers pay, but sadly it doesn't cap the number of people suffering due to rising energy costs.

: AI data centre campaigners set out demands as ministers prepare for Holyrood return

"As with previous rises, it is the price of gas driving this latest increase. Every unit of gas used will be 27% more expensive than last winter and over 150% higher than at the end of 2020.

"Price rises fall hardest on the households who can least afford them, with millions forced to pay more for the same energy or ration the energy they use even further."

He called on ministers to expand support programmes, introduce an energy debt relief scheme and increase efforts to improve the energy efficiency of homes.

Doogan said the rise showed Scotland remained exposed to high energy prices despite its energy resources.

The SNP MP added: "This month alone, we've seen energy bills up, inflation up and the price of oil up. This is not the 'change' that Andy Burnham promised – and it means most families will be worse off this winter.

: The current and ex-Westminster politicians taking donations or advising AI companies

"Scotland is an energy-rich country and it's a disgrace that, under Westminster control, we are being forced to pay sky-high prices for a resource we have in abundance.

The fact that the UK government has taken over £400 billion of Scotland's energy wealth, and hoarded it at Westminster, while the Labour Party destroys thousands of Scottish energy jobs, underlines why Scotland needs independence so we can lower energy bills, invest in our economy, create jobs and build a better future."

The latest price cap is calculated using Ofgem's updated definition of a typical consumer, which came into effect in July to reflect falling household energy use.

Using its previous definition, the October cap would be equivalent to £1941 a year, compared with £1862 currently.