Household energy bills to rise 2% from October

As this could save more than £200 against the new cap. Paying by direct debit or smart pay-as-you-go could also save you money.

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"In the longer term, we will continue to see fluctuations in our energy prices until we are insulated from volatile international gas markets. That's why we continue to work with Government and the sector to diversify our energy mix to reduce the reliance on markets we do not control."

Energy minister Michael Shanks said: "We know that any price rise is a concern for families. Wholesale gas prices remain 75% above their levels before Russia invaded Ukraine. That is the fossil fuel penalty being paid by families, businesses and our economy. That is why the only answer for Britain is this government's mission to get us off the rollercoaster of fossil fuel prices and onto clean, homegrown power we control, to bring down bills for good.