British energy bills could jump by more than a quarter in January, according to new forecasts published today — with a typical household bill nearing £2,400 a year by April.
EDF forecasts the energy price cap at £2,192 in January, a rise of 27% on the current £1,723, and £2,389 in April — about $3,212 — which would be £666 above October’s level. E.ON puts the January rise at £492, taking a typical household bill to more than £2,200 a year, the biggest rise since January 2023. The two forecasts differ — EDF’s January figure implies a rise of about £469, while E.ON’s is £492 — so neither should be presented as a settled figure, and the official cap announcement is still to come.
The cause, according to the reports, is energy costs spiking since the US and Israeli attacks on Iran, with wholesale gas prices rising again. The cap for a typical household paying by direct debit stands at £1,723 a year from October 1 to December 31, 2026, according to Ofgem, after a 3.6% rise on October 1 from £1,663.
Help is coming — but it may not cover the rise
The government has announced support. A one-off £100 Household Energy Payment will go to 20 million English households in council-tax bands A to D, paid directly into bank accounts in January, at a cost of £2.6 billion, Chancellor John Healey announced last month. VAT on electricity is being extended at a lower rate, and gas standing charges are being scrapped.
Winter Fuel Payments for 2026 to 2027 are also being paid automatically, with most eligible pensioners receiving between £100 and £300 during November or December 2026. Every state pensioner gets at least £150 between November 2026 and January 31, 2027: under-80s get £200, or £100 if they live with another pensioner under 80, while over-80s get £300, or £150 if they live with another over-80. Those earning more than £35,000 repay the payment to HM Revenue and Customs. Pensioners over 80 in bands A to D can get up to £400 in total — the £300 Winter Fuel Payment plus the £100 Household Energy Payment.
New powers to target help
The Observer reported today that powers in an energy independence bill laid before Parliament would let officials use income and benefits data, smart-meter readings and NHS data to target help at the coldest homes. The bill is aimed at making support more precise — so that help reaches the households that need it most, rather than going to everyone.
For households, the message is mixed: help is coming in January, in the form of the £100 payment and the Winter Fuel Payment, but the January cap rise could be several times larger. The official cap announcement will settle the figures — until then, the forecasts are a warning to check what help is available, and to make sure any payment due is claimed.
