Energy bills to soar as major Ofgem price cap rise announced - live updates

Millions of people across the UK are facing a major increase in energy prices as the Government regulator Ofgem confirmed an 80.06% rise in the energy price cap, sending the average household's yearly bill from £1,971 to £3,549 from October.

The cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1, and will remain in place until December 31, when it will be adjusted again.

Ofgem's chief executive Jonathan Brearley warned of the hardship energy prices will cause this winter and urged the incoming Prime Minister and new Cabinet "to provide an additional and urgent response to continued surging energy prices".

Read more: Everything you need to know about the price cap increase

The regulator said the increase reflected the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the Covid pandemic, and had been driven still higher to record levels by Russia slowly switching off gas supplies to Europe.

Wales' First Minister Mark Drakeford has called for an emergency budget and said: "We're doing all we can to support people in Wales, but UK Government's failure to address this crisis will result in further hardship for many families."

Chancellor of the Exchequer, Nadhim Zahawi said: “I know the energy price cap announcement this morning will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households, and £300 for all pensioners."

Scroll down for live updates