The UK energy price cap is forecast to rise by 16 per cent in January to £1,999, driven by the Iran war disrupting global gas supplies. Cornwall Insight predicts this will be the largest increase since January 2023, adding pressure on chancellor John Healey to support households. The UK relies on gas for heating and imports about half its needs.

Ofgem will set the cap based on wholesale prices between August 19 and November 17, but the rise is considered certain. Electricity prices are expected to reach 30.28 pence per kWh with a 55 pence daily standing charge. Gas prices are forecast at 9.76 pence per kWh with a 31 pence daily standing charge.