Wednesday 27 May 2026 7:24 am
UK households are to be subjected to a sharp rise in energy bills next month, le
UK households will be hit by a sharp rise in energy bills next month, leaving Brits bracing for a painful winter of higher bills off the back of the Iran war.From 1 July to 30 September the annual energy price cap will be £1,862 per year, a 13 per cent jump from the prior period, for a typical household across England, Scotland and Wales.The rise also comes in above forecasts by Cornwall Insight, which had projected a £1,850 increase last week, up from the current cap of £1,641.The analyst’s forecast has changed over the course of the conflict between the US and Iran, hovering up as high as £1,973 as of 20 March, before dipping to £1,929, following the fragile ceasefire.Worrying winterThe cap sets the maximum price per unit of gas and electricity used, meaning households only pay for the amount of energy they use.But while households will be largely shielded over the warm summer months, concerns are growing over a painful hit when the cap is once again reviewed in October and energy demand grows as temperatures drop.Cornwall Insight’s forecasts suggest the cap in October will be at a similar level to July, even if the Middle East conflict ends soon, after physical damage to infrastructure from airstrikes and the lingering effect of disrupted oil and gas supplies.Call to actionCalls have been growing for the government to set out action to support the most vulnerable, but Rachel Reeves stopped short of any immediate energy measures in her cost-of-living plan.The Chancellor told MPs last week: “We stand ready to act if market conditions worsen significantly later this year and I have been leading cross-Government contingency work on design of potential future targeted and temporary support for businesses.”Energy costs have been sent soaring by Iran’s move to block the Strait of Hormuz early in the conflict, stopping a fifth of the world’s oil being transported.Households have yet to feel the impact, as the price cap is reviewed on a quarterly basis, and April saw a seven per cent drop following government measures to reduce bills.This included moving 75 per cent of the cost of the UK’s renewables obligation from household bills on to general taxation, and scrapping the energy company obligation scheme.
