Millions of UK households warned to expect another price hike in April

Brits struggling with the cost of living crisis face yet another rise in energy costs from April thanks to market upheaval and price cap reforms, analysts warn. A forecast from Cornwall Insight suggests that the energy price cap could rise to £1,762 a year for a typical dual fuel consumer. This would be a 1% increase from the cap of £1,738 that comes into effect in the New Year.

UK government statistics show that 3.17 million people in England were living in fuel poverty in 2023, but charities believe this is a gross underestimate. Cornwall Insight said the forecast reflected the economic and geopolitical factors influencing wholesale prices, such as global conflict. Analysts warned that ongoing uncertainty regarding the future of the Russian invasion of Ukraine and its implications for gas supplies to Europe was now playing out against the second Donald Trump presidency and its impact on gas exports from the US.

There is also the prospect of reforms adding extra costs to the cap, which could raise annual bills by £20, Cornwall adds. With proposed reforms factored in, forecasts suggest the cap could rise 2.5% to around £1,782. Prices are still expected to fall in July next year.

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Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “Energy bills in 2025 are shaping up to reflect a perfect storm of regulatory changes and market turbulence, in addition to any broader sector reforms put forward by the new Government.

“While the wholesale market will remain a key driver of prices, Ofgem’s reforms and the introduction of new charges could raise costs further for households.

“There are a lot of unknowns, and while significant rises