How much will energy bills go up by?

As the conflict in Iran forces oil prices upwards, many households are bracing themselves for an increase in energy bills.

And now we have some idea of just how much our bills might go up by.

Cornwall Insight estimates that in July, typical annual household energy bills could go up by £332 in July.

This would mean that a dual-fuel household using a normal amount of gas and electricity would pay £1,973 a year - up from £1,641.

Energy price cap won’t go up in April

If the forecasts are even broadly correct, that would represent a big increase in the cost of living for millions of households.

Last month, energy regulator Ofgem announced that in April, the energy price cap will fall by 7%. 

That means the cap will drop by £117 to £1,641 a year for a typical dual fuel household - around £10 a month back in your pocket if you use gas and electricity.

And chancellor Rachel Reeves has insisted that the energy price cap will remain unchanged, despite the conflict in the Middle East.

This, she said, will give families “immediate certainty on their bills until at least the end of June”.

But Cornwall Insight’s predictions are a reminder that the situation remains extremely uncertain, and that there may be no way to prevent higher oil prices hitting consumers later this year.

Could the government offer energy bill support?

So far, the government hasn’t announced details of support for households apart from help for people who use heating oil.

But it hasn’t ruled out providing targeted support to consumers who are hit by rising energy prices either.

“Clearly, what happens at the end of that price cap period is still being worked through,” said energy minister Michael Shank.

“As we get closer to that period, we’ll have more evidence and be able to see what the price cap might do, and we stand ready to provide whatever support is needed to consumers.”

What can I do if I'm worried about energy bills?

If you’re feeling anxious about energy bills going up, then help is available.

Try our household bills calculator

When you’re worrying about the impact of rising costs, it can help to see the bigger picture.

Our free and interactive household bills calculator gives you a personalised forecast of how your monthly costs could change.

It only takes a couple of minutes to use and shows how bills may change based on where you live.

Contact your supplier

If energy bills are a particular worry, speak to your supplier. 

They might be able to offer:

• grants
• payment plans
• advice on managing your account

It could also be worth joining the Priority Services Register for extra support, as well as taking steps to cut your energy usage.

Find out what benefits you could claim

You might be able to claim financial support from the government to help you with your living costs.

For example, you might be entitled to pension credit, which provides people on low incomes who are over state pension age with extra money to help with living costs.

Use our benefits calculator to see what you could be eligible to receive. 

Manage your household budget

Gas and electricity are just some of the costs that come with running a household.

So it’s well worth creating a budget, so you can see how much money you have coming in each month and prioritise your spending.

You can then be confident that you’re able to cover these vital expenses, as well as work out what you can afford to spend on non-essentials and put into savings.

Get started with our budget planner - it’s free and easy to use.