“Our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills” – Ofcom.
British households have been dealt yet another financial blow as energy bills are set to rise by £111 per year from April, despite Keir Starmer’s previous pledge to slash bills by £1000.
Today, energy regulator Ofgem confirmed that the price cap for a dual-fuel bill will increase from £1,738 per year to £1,849 – meaning the average household will be paying around 50 per cent more than they were before the Ukraine war sent prices soaring.
Ofgem boss Jonathan Brearley issued a stark warning today that household energy debts have hit record levels and are expected to rise further, putting millions of families under “huge stress.”
Mr Brearley added: “We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households.
“But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.
“If anyone is worried about paying their bills, I would urge them to reach out to their supplier to make sure they’re getting all the help they can. Where possible, switching or fixing tariffs now could also help to bring costs down and provide certainty over coming payments.”
The increase comes as European gas prices have roughly doubled in the past year, with a cold winter forcing energy companies to drain their storage tanks faster than expected. It is yet another painful hit for consumers already struggling with the cost-of-living crisis, amid stagnating economic growth and declining living standards.
It also raises serious questions about Starmer’s much-trumpeted 2022 promise to cut household energy bills by £1000. At the time, he declared: “I don’t say this lightly. The cost-of-living crisis is a national emergency. Households struggling to pay their bills need immediate help and support for the future. With Labour, you wouldn’t spend a penny more on energy bills this winter. Our plan would save you £1,000.”
Fast forward to 2025, and the reality is starkly different – not only have bills not fallen, but they are on the rise yet again.
Reality Check for Labour?
The latest price hikes are another reminder that Labour’s rhetoric often doesn’t match the reality. Starmer was adamant that bills would be cut under his leadership – yet instead, families are once again left picking up the tab.
With economic output per head falling for a second consecutive quarter, people across the UK are feeling poorer than ever. And with household energy debts spiralling, many are wondering where exactly Starmer’s much-promised relief has gone.
One thing is clear: for millions of struggling families, Labour’s promises are ringing increasingly hollow.
