'Dismay' for disabled and vulnerable households as average annual energy bills to rise to £1,738

January’s increase in the energy price cap will “dismay” disabled households, who face higher costs to power crucial equipment, the boss of a leading disability charity has warned.

The energy price cap will rise by 1.2% in January 2025, seeing an average bill go from £1,717 to £1,738, Ofgem has confirmed.

It comes as the government admits its decision to cut winter fuel payment for nearly 10 million pensioners – by making the benefit means-tested – will plunge 100,000 people into poverty.

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“Yet another increase in the energy price cap – piled on top of the painful 10% rise delivered in October – will dismay many disabled households,” said Richard Kramer, chief executive of disability charity Sense.

“The need to power crucial equipment, such as feeding machines and hoists, means many disabled people have no choice but to use extra energy. Struggling to keep a home warm enough in winter is dangerous for someone who can’t regulate their own body temperature.”

The cap is lower than the same period in 2024, but rising bills have been blamed for the UK economy going above the Bank of England’s 2% inflation target in October.

Consultancy Cornwall Insight predicts bills will fall later in 2025, but only by around £5. However, some fixed tariffs offer prices below Ofgem’s current cap.

Derek Mitchell, CEO of Citizens Advice Scotland, said stubbornly high bills were forcing people to ration heating – or stop using it completely.

“As the days get colder and darker, especially over the past week, thousands across Scotland face the misery of living in a cold home, impacting both their physical and mental wellbeing,” said Mitchell.

“Across our network, the average person seeking debt advice has £2,500 of energy-related debt with many on low incomes. And unfortunately, our energy markets are broken. Urgent and targeted solutions including a social tariff and debt write off schemes are needed to help people not only stay warm but have a realistic way to pay debts back.”

Campaigners used Friday’s energy price cap announcement to call for a wave of support from the government, including cheaper social tariffs for customers who meet certain criteria, and improved repayment schemes for those in energy debt.

Big Issue has produced a guide on what you can do if you’re struggling to pay energy bills.

Bills will remain at the mercy of wider forces unless investment is made in renewable energy, warned Caroline Simpson of the Warm This Winter campaign group.

“At the moment we’re too heavily dependent on volatile oil and gas, which is sold on international markets and at the whim of global factors over which we have no control with billionaires such as Putin and Trump pulling all the strings and making us vulnerable to more energy shocks in the future,” said Simpson.

“Homegrown renewables are the only way we will cut our bills for good but whilst that kicks in we also need commitment from the government that vulnerable households will be supported with their energy bills this winter and next with a social tariff funded by the energy sector’s vast profits. In this day and age, nobody should be afraid to turn on the heating because they can’t afford to pay for it.”

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