{"id":124763,"date":"2026-08-26T13:15:00","date_gmt":"2026-08-26T12:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=124763"},"modified":"2026-08-26T13:08:21","modified_gmt":"2026-08-26T12:08:21","slug":"energy-bills-set-to-surge-again","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/energy-bills-set-to-surge-again\/","title":{"rendered":"Energy Bills Set to Surge Again as Burnham\u2019s Cost-Of-Living Pledge Faces Fresh Scrutiny"},"content":{"rendered":"\n
Burnham has acknowledged that the increase will be difficult for households and said the government\u2019s decision to remove VAT from electricity bills would not be enough to stop prices rising. His administration has made reducing the cost of living a central focus of its first weeks in office, with measures described by Burnham as offering families some \u201cbreathing space\u201d.<\/p>\n\n\n\n
According to Ofgem, the energy price cap will increase by four per cent from October, bringing the average annual household bill to \u00a31,723. The rise follows the regulator\u2019s 13 per cent increase in July and has prompted criticism from Conservative figures who argue that Labour has failed to meet its commitment to reduce energy costs.<\/p>\n\n\n\n
Shadow energy secretary Claire Coutinho<\/a> said Labour had promised to cut household energy bills by \u00a3300 but claimed they had instead risen by nearly \u00a3400. She said the Conservatives\u2019 proposed \u201ccheap power plan\u201d would remove government taxes and levies from bills without imposing a cost on taxpayers.<\/p>\n\n\n\n Shadow environment secretary Victoria Atkins<\/a> also criticised the increase, describing it as \u201coutrageous\u201d and accusing the government of making \u201cbroken promises\u201d. She said the winter fuel allowance had been important to constituents who relied on it to pay for heating oil.<\/p>\n\n\n\n Burnham, meanwhile, said the government understood the effect of the price cap increase but was acting with the measures currently available. \u201cWe\u2019ll continue to look as we go forward at how we get energy prices down in the long term, and that\u2019s what we need to do too<\/em>,\u201d he told reporters.<\/p>\n\n\n\n Further increases may follow. According to Cornwall Insight, the cap is expected to rise by another nine per cent to \u00a31,872<\/strong> per year from January, with high international gas prices showing little sign of easing.<\/p>\n\n\n\n The pressure on household bills is also being shaped by wider energy market conditions. Brent crude, the international benchmark for oil, has risen as high as $110 <\/strong>per barrel since the United States and Israel first launched strikes on Iran. Prices have since fallen to around $85 per barrel amid signs that peace negotiations are progressing, but they remain above the January level of about $60 per barrel.<\/p>\n\n\n\n According to Boston Consulting Group<\/strong>, energy <\/a>bills are set to rise by \u00a3264 by 2035. The consultancy called on Labour to remove renewable energy levies from household bills and connect more data centres to the electricity grid to increase demand and help reduce prices.<\/p>\n\n\n\n
Government Considers Further Changes to Energy Costs<\/strong><\/h2>\n\n\n\n