Ofgem increases price cap as winter fuel payments are withdrawn for millions

The energy price cap will increase by 1.2% in January for the second consecutive time, raising bills to an average of £1,738, £21 more than the previous cap. This rise comes as millions of people lose access to winter fuel payments, with campaigners criticizing the decision as a blow to vulnerable individuals, especially amid sub-zero temperatures. The new cap will last from January to March 2025 and is £190 cheaper than the cap during the same months in 2024, following Sir Keir Starmer’s decision to end the winter fuel payment for most pensioners in an effort to make savings.

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