Scottish households will face higher energy costs this winter after the UK’s energy regulator confirmed a 4% increase to the price cap, raising the average annual bill to £1,723. The adjustment, effective from October, adds about £60 to household expenses.
Prime Minister Andy Burnham said the proposed removal of VAT on electricity bills would lower the cap by around £45. Without that measure, the cap would have risen from £1,862 to £1,935, marking a £73 increase.
Despite the latest change, households will still pay nearly £800 more than before the energy crisis began in autumn 2021. Charities warn the increase will further strain budgets already stretched by high living costs.
Craig Tobin, head of business development at Advice Direct Scotland, said the rise would cause concern as colder weather arrives. He noted that household budgets remain under significant pressure. Many will pay hundreds of pounds more than before the crisis, prompting calls for a social energy tariff to help the most vulnerable access cheaper deals.
Related: Caroline Gardner CBE replaces Amstrong as Wheatley chair
Citizens Advice Scotland shared similar concerns, stating that advisers see daily how rising bills push people into debt. David Hilferty, the charity’s director of impact, said many cannot afford to heat their homes. Poor practices by energy companies, such as customer service failures, make it harder for people to get help.
Hilferty urged immediate action, including a social tariff and a debt relief scheme. Without these measures, people will face serious hardship this winter.
Consumer Scotland’s chief executive, Sam Ghibaldan, said the increase would hit low-income households and those with disabilities or health conditions hardest. A survey by the organization found these groups struggle most with affordability. Current support schemes often fail to reach those who need them most.
The regulator’s decision marks the second consecutive quarterly rise this year, with another increase expected in January. Gas users will feel the impact most sharply, as prices climb while incomes remain flat.
Related: Tottenham Twinkles: A Guide to Personalized Engagement Rings
Energy debt has reached record levels, with many households unable to keep up with payments. Ghibaldan called on suppliers to offer affordable repayment plans and urged governments to improve targeting of support for those facing the greatest affordability challenges.
Charities are advising households to seek help if they struggle. Advice Direct Scotland operates a free helpline, energyadvice.scot, providing guidance on bills, grants, and payment plans. Yet with winter approaching, the pressure on budgets remains unrelenting.
The price cap’s rise reflects broader market trends. For families already cutting back, the extra £5 a month could force difficult choices between heating and other essentials.
Ofgem’s next review in November will set the cap for January. If forecasts hold, bills may climb again as temperatures drop.
