Energy bills are set to soar once more, with the typical UK household expected to pay £1,758 annually starting January 1, 2026. This represents an increase of about £500 compared to winter 2021, signaling a growing strain on family finances.
According to Ofgem, the average household in England, Scotland, and Wales consumes approximately 2,700 kWh of electricity and 11,500 kWh of gas per year. Despite a forecasted 1% rise in the January price cap, household energy costs remain significantly higher than in previous years.
This surge comes amidst a worrying backdrop: six million children in the UK currently live in fuel poverty, unable to afford adequate heating. National Energy Action (NEA), a leading fuel poverty charity, has voiced deep concern over how families will manage the latest hike.
READ MORE: Celebrities Who Turned Down Royal Honours: Reflecting on the King’s New Year Honours 2026
READ MORE: Foreign Office Issues 2026 Travel Ban: 55 Countries Brits Should Avoid
Adam Scorer, NEA’s chief executive, emphasized the harsh reality many face: “We enter the coldest months of the year with energy prices stubbornly high and a warm home out of reach for millions. Household energy debt is climbing to alarming levels and is expected to exceed £5 billion in 2026."
While the recent government budget promises an average £150 reduction per household from April, Scorer points out that another challenging winter lies ahead. Families may find themselves choosing between accruing debt to heat their homes or enduring freezing conditions, especially over the holiday season.
“This winter, the true cost of cold homes is cruelly exposed, particularly affecting vulnerable children," added Scorer.
Looking ahead, Scorer anticipates forthcoming specifications on the Government’s £15 billion Warm Homes Plan, describing it as the most significant chance to combat fuel poverty and ensure homes remain warm.
He stressed the importance of targeting support effectively: “The key questions are how many children will benefit from warmer homes, and how many of the 5 million homes eligible for the plan belong to families who simply cannot afford adequate heating.”