The energy price cap will increase from the current £1,971 to £3,549 from October 1, regulator Ofgem has announced.
The cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1, and will remain in place until December 31, when it will be adjusted again.
Following the news of the price cap rise of more than 80 percent, the chief executive of Ofgem has urged the incoming Prime Minister to do more to deal with the impact of energy price rises.
Jonathan Brearley said the Government would need to add to the support it announced in May when bills were only expected to jump to £2,800.
The energy price cap will increase from the current £1,971 to £3,549 from October 1
Yui Mok
“The Government support package is delivering help right now, but it’s clear the new prime minister will need to act further to tackle the impact of the price rises that are coming in October and next year,” Mr Brearley said.
“We are working with ministers, consumer groups and industry on a set of options for the incoming prime minister that will require urgent action.
“The response will need to match the scale of the crisis we have before us. With the right support in place and with regulator, government, industry and consumers working together, we can find a way through this.”
While Labour shadow chancellor Rachel Reeves added: “This is incredibly worrying and will strike fear in the heart of many families.
“We cannot wait any longer to act. This is a national emergency.
“The Tories must freeze energy bills now so households don’t pay a penny more in winter,” she tweeted.
Families are facing one of the “bleakest Christmases” for years, a charity which supports the vulnerable said.
Labour shadow chancellor Rachel Reeves said: “This is incredibly worrying and will strike fear in the heart of many families
Kirsty O'Connor
Rossanna Trudgian, head of campaigns and public affairs at Action for Children, said in a statement: “Today’s announcement, and warnings of even worse rises to come next year, makes it clear that the country is facing a national emergency.
"The families we support are already under enormous pressure and are now set to face a relentless wave of energy price hikes and inflation all while coping with the colder weather.
“We are seeing more and more frightened families who are reaching crisis point. Some parents are coming to us in tears, terrified about how they are going to feed their children, with some missing rent payments so their child can have a meal – one family has even resorted to taking seats out of their car to save on fuel. Many of these families have already cut back to the bone and have nowhere left to cut.”
“They are facing one of the bleakest Christmases in recent years. The next prime minister must provide emergency relief to struggling parents by committing to further targeted support for low-income families through the social security system.
"Families with children also face higher costs, so it is vital that any financial support takes into account family size and need.”
Chancellor Nadhim Zahawi said the increase in the energy price cap would cause “stress and anxiety” for people but that the Government was working to develop more options to support households.
“I know the energy price cap announcement this morning will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households, and £300 for all pensioners,” he said.
“While Putin is driving up energy prices in revenge for our support of Ukraine’s brave struggle for freedom, I am working flat out to develop options for further support.
“This will mean the incoming prime minister can hit the ground running and deliver support to those who need it most, as soon as possible.”