UK Energy Price Cap to Rise in January

The energy price cap in the UK will rise by £21 to £1,738 starting January 1, exacerbating the financial strain on households, particularly pensioners who have lost their Winter Fuel Payment. This increase follows a previous hike in October, which added £149 to average bills, and has been attributed to global gas price volatility exacerbated by the war in Ukraine. Campaigners, including Citizens Advice Scotland and Scottish Greens, are urging the Labour government to reinstate universal Winter Fuel Payments to alleviate the burden on vulnerable populations facing fuel poverty during a harsh winter. Martin Lewis recommends that households consider locking into fixed energy deals, as current prices are expected to remain high despite minor reductions projected in April and July. With approximately 10 million households losing benefits due to recent policy changes, critics argue that the cuts are cruel and harmful, particularly during the coldest months of the year. Overall, energy costs remain significantly above pre-pandemic levels, requiring urgent action to support those struggling to afford heating.