BREAKING: Energy price cap will rise to £3,549 in October, Ofgem announces

The energy price cap will rise to £3,549 in October, regulator Ofgem has announced.

This means the yearly gas and electricity bill for the average household will rise from from £1,971. Energy bills will be around £2,300 more than a year earlier.

The announcement came today amid the worsening cost-of-living crisis, with petrol and household item prices soaring and taxes and interest rates also going up. Households have been told to brace for a tough winter, with families having to come up with the money to pay bills or face living in the cold.

READ MORE:Everything you need to know about the energy price cap change

The new price cap - announced amid soaring global gas prices - will last for three months from October 1. But from January, analysts expect the cap to rise again to £4,200.

It is believed that around 24 million households in the UK have their domestic energy bill decided by Ofgem's price cap. A price cap is also decided for customers on prepayment meters which are separated from those with variable tariffs.

It is now likely to be a nervous wait until September 5, when the new prime minister takes office. As they wait for government help, many will try to reduce bills by keeping their homes colder, cooking in bulk and taking shorter and less regular showers.

Experts also say that turning down the flow temperature on your boiler and switching off your boiler’s pre-heat mode can save hundreds of pounds this winter. But such savings are likely to offset only a small proportion of the mammoth price cap.

Families will have to come up with the money somehow, or face winter living in the cold. Around 45 million people in the UK could be thrown into fuel poverty as a result, according to a study from the University of