Older people who have “nothing left to cut back on” face another winter of worry over heating, a Welsh charity has warned, after the energy regulator confirmed bills will rise again from 1 October.
Ofgem announced on Wednesday that its price cap will go up by 4% for October to December, taking a typical annual bill for a household using gas and electricity from £1,663 to £1,723, around £5 a month more.
The cap limits what suppliers can charge per unit of energy and in standing charges, rather than capping anyone’s total bill, and covers around 22 million households on default tariffs. Roughly 11 million households on fixed deals are unaffected.
Gas is doing the driving. The regulator says gas bills are rising by about 8%, while homes without gas will see an increase of less than 1%, and the rise would have been around £45 higher without the UK Government’s removal of VAT from electricity bills.
‘Nothing left to cut back on’
Age Cymru said the news “will cause concern for those older people who have repeatedly faced tough choices during the last few years of energy price hikes, and who now have nothing left to cut back on”.
Victoria Lloyd, the charity’s chief executive, said the cost of living remains a challenge for many older people across Wales.
She said the charity’s latest annual survey found 52% of respondents were reducing their use of energy and heating to help manage rising costs.
The charity is calling on UK ministers to raise the Warm Home Discount to £200 for this winter, and to open an application route so people of all ages on low incomes can seek the support through their energy supplier.
It wants the Welsh Government to expand the Discretionary Assistance Fund to support older people in an emergency.
Ms Lloyd said: “No older person should have to face another winter fretting over whether they can afford to stay warm – but we know that in light of today’s news many now will.”
She said the aim should not be “getting through one winter at a time”, but building “a future in which no older person is left cold or struggling to afford the essentials”, with both the UK and Welsh governments acting quickly.
What the regulator says about beating the cap
Neil Kenward, Ofgem’s director general for markets, said high international gas prices are continuing to drive energy costs in the UK, and welcomed the VAT intervention.
He said savings are available by choosing a fixed tariff, “available at £100 or more below the October price cap”, with many suppliers offering cheaper off-peak electricity to smart meter customers.
The new rates run to 31 December, with Ofgem’s next announcement due on 25 November, covering the first three months of 2027.
Anyone struggling to pay for energy can contact their supplier, which must offer support, while Age Cymru offers free advice for older people and their families.
Discover more from Swansea Bay News
Subscribe to get the latest posts sent to your email.
