Millions now face higher energy bills after new price cap increase

Millions of households are now paying more for their gas and electricity after the energy price cap rose by 2% on October 1.

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The increase means the typical annual bill for a household paying by direct debit has gone up from £1,720 to £1,755, just as colder weather pushes many to switch on their heating.

Debt charity StepChange said the £35-a-year rise may seem modest, but warned it comes against a backdrop of mounting arrears. The group has recorded a 32% increase in average energy debts among its clients over the past two years.

Simon Trevethick, head of communications at StepChange, said: "Not only are people now having to switch on their heating as the weather turns colder, but bills have just gone up this month, which is another blow to household finances. Energy arrears are the most common type of debt across household bills that we see at StepChange, and people have had little respite from steep costs over the past three years."