Reactions to Ofgem announcement on the energy price cap

Conservative response to the increase in the Energy Price Cap

Andrew Bowie MP, Acting Shadow Energy Secretary said:

“The latest hike in the Energy Price Cap is a betrayal to the families who Ed Miliband promised to save £300 on their bills.

“Labour's election promise is shot and bills are on the rise.

“What's more, the Government are not being honest about the trade-offs required to fund their fantastical energy policies - it will be families who are hit with the bill.”

Which? responds to the news that the energy price cap will rise by 6.4 per cent in April

Emily Seymour, Which? Energy Editor, said:

"The news that the energy price cap will rise by 6.4 per cent in April and is predicted to continue rising over the next year will understandably be worrying for many households. 

"It's well worth shopping around for energy deals to see if you could save money by switching. Unfortunately, there's no 'one size fits all' approach when it comes to fixing an energy deal - the best option for your home will depend on your individual circumstances.

"You should compare what your monthly payments would be on a fixed deal with what you'd expect them to be if you remain with the price-capped variable tariff to see what the best option is for you. As a rule of thumb, we'd recommend looking for deals cheaper than the price cap, not longer than 12 months and without significant exit fees.

"If you're worried about affording your bills, don't suffer in silence. Speak to your energy company - they are obliged to help you if you're struggling to pay your bills."

Energy price cap reaction: Time to end costly reliance on gas, says IPPR 

Reacting to the latest energy price cap, Sam Alvis, associate director for IPPR, said:  

"Households are once again facing higher bills as gas prices rise. The public is clear—they want to end this costly reliance and shift to homegrown, secure, and low-cost renewables. 

"The transition to renewables will mean lower, more stable prices, freeing us from the mood swings of the gas market. But people need to see that the government is on their side now. 

"Immediate action on household costs can help sustain public support for the rapid expansion of clean energy. The government should consider rebalancing costs between bills and taxation and review how Ofgem calculates charges.” 

Davey: Scrap energy bill rise for pensioners stripped of Winter Fuel Payments

Liberal Democrat Leader and former energy secretary Ed Davey is calling on the Government to scrap the latest energy bill rise for the almost 10 million pensioners who've been stripped of their Winter Fuel Payments. 

Energy regulator Ofgem has just confirmed that the price cap for energy bills is set to rise a further 6.4% from April, the third consecutive quarter where prices have risen. 

A recent poll by the Liberal Democrats found nine in ten UK adults who are worried about the cost of heating have changed how they heat their homes this winter, to help cut bills.

Liberal Democrats, who have been campaigning against the Government's unfair Winter Fuel Payment cut, said ministers should give struggling pensioners immediate support by protecting them from this price cap increase. The party is also calling on the Government to implement an energy social tariff to protect vulnerable people living in fuel poverty.

Commenting, Liberal Democrat leader Ed Davey said: 

“The Government must scrap this energy bill rise for pensioners who have had their Winter Fuel Payments cut.

“Ministers should reverse their cut to Winter Fuel Payments altogether, but the least they could do is to ensure bills for those impacted do not rise further.

“Thousands of vulnerable people have shamefully been left to choose between heating or eating this winter. The Government has got to get a grip on energy bills and fast.”

ENDS

Notes to Editor:

The Price Cap is forecasted to further increase in coming quarters, despite the Government pledging to bring down energy bills by up to £300 by 2030. This increase is the third consecutive quarterly price cap rise.

According to the government's own estimates, 50,000 more pensioners will be in relative poverty this year due to the cut to winter fuel payments.

Our recent press release on the polling of UK adults can be found here 

Methodology: Savanta interviewed 2,286 UK adults aged 18+ online between 24th and 26th January 2025. Data were weighted to be representative of the UK by age, sex, region, and social grade.

Hike in energy bill adds to financial insecurity that is driving voters away from the government, JRF

Responding to Ofgem's increase in the energy price cap to 6.4% from April, JRF Director of Policy and Insight Alfie Stirling said: 

“We know so many people already struggle to keep up with high energy bills so today's news that the price cap will increase even further will be an ongoing source of anguish. More support through the warm homes discount offers some relief next year, but for the millions not covered, the risk of being overwhelmed by higher and higher bills is real - and stops families from being able to plan for a better future. 

“As our research shows, people who are feeling insecure about their finances are more likely to be switching away from Labour. They want the government to treat their own household finances as a priority and further voter volatility if people don't feel they are being heard. This is likely to make the economic insecurity, which is especially high in mid-life, even worse"