New energy price rise warning for millions of households and risk of NHS being 'overwhelmed'

Millions of households face “acute hardship” - with a risk of the being “overwhelmed” - amid another winter of , campaigners have warned.

Charities had been hoping regulator ’s latest price cap, which is announced on Friday, would fall. But industry experts Cornwall Insight yesterday (Mon) forecast the cap will rise by another 1% to an average £1,736 a year from January, on top of a . The cap impacts 27 million customers on standard tariffs or with a prepayment meter

Cornwall Insight said: “Many will have been hoping to see a fall in the cap. Unfortunately, forecasts show that prices will be staying relatively high for the remainder of winter.”

The expected rise will cover the first three months of next year, when households typically use the bulk of their annual heating. Campaigners already fear the impact given levels of energy debts have hit a record high. To make matters worse, the government has

Jonathan Bean, from the group Fuel Poverty Action, said: “As temperatures plunge, millions of us face a brutal winter without heating as prices remain high and pensioner support is cut. NHS and care systems will be overwhelmed as people get sick and thousands die in cold homes. Ofgem and the government are allowing big energy firms to profit from our misery instead of protecting us. Urgent action is needed to end cruel standing charges and introduce fairer energy pricing.”

Peter Smith, director of policy and advocacy at National Energy Action, said: “The current cold spell is already having a devastating impact on the most vulnerable people. With unaffordable and far less support available nationally this winter, millions of people are already rationing their energy use to dangerous levels or getting deeper into debt trying to keep warm. With increased wholesale prices in the last few months, it is no surprise that there will be no let-up in the unaffordable cost of energy. The most vulnerable people will sink into further difficulties and acute hardship.”

Richard Neudegg, director of regulation at the website Uswitch.com, said: “Predictions that energy prices for those still on default tariffs will rise again in January are another kick in the teeth for households. The price cap is supposed to protect consumers, but millions face paying more during the coldest months of the year.”

Cornwall Insight said the price cap was likely to rise due to a “relatively volatile wholesale market, influenced by supply concerns tied to geopolitical tensions, maintenance on Norwegian gas infrastructure, disruptions, amongst other smaller factors.” Looking further ahead, it forecasts the cap will drop slightly next April and again in October.

Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “This winter, millions of households say they will not heat their homes to recommended temperatures, risking serious health consequences. With it being widely accepted that high prices are here to stay, we need to see action. “Options like social tariffs, adjustments to price caps, benefit restructuring, or other targeted support for vulnerable households must be seriously considered.”