Business
Households urged to send in meter readings ahead of latest energy price rise
More than seven million households still on a standard energy tariff have been urged to send in meter readings to avoid paying higher prices from October 1.
The energy price cap will rise by 2% from Wednesday for a typical household in England, Scotland and Wales, just as cooler temperatures see many switching on their central heating.
This means that the energy bill for the average household paying by direct debit for gas and electricity will rise from the current £1,720 to £1,755 per year.
Uswitch calculated that the average home on a standard tariff would spend £140 on energy in October compared with £63 in September, thanks to a combination of higher rates and increased usage in autumn.
Uswitch energy spokesman Ben Gallizzi said: “Households should take a moment to read their energy meter in the coming days to avoid the possibility of being charged at October’s higher energy rates.
“Customers who don’t have a smart meter should submit their readings before or on Wednesday October 1, so their supplier has an updated – and accurate – view of their account.
“Energy billpayers can get ahead of October’s price hike by fixing at cheaper rates now. Currently, there are a range of fixed deals currently available that are around £215 cheaper than the October price cap for the average household.
“If you can switch to a deal cheaper than the October price cap, now is a good time to make the change. We urge customers to run an energy comparison as soon as possible.”
The increase in energy costs come despite wholesale prices falling by 2% over the three months prior to Ofgem’s latest price cap decision.
However, standing charges – the figure consumers pay per day to have energy supplied to their homes – are set to rise by 4% for electricity and 14% for gas, or 7p a day, primarily driven by the Government’s expansion of the Warm Home Discount.
Around 2.7 million more low-income households, including 900,000 families with children, are eligible for the £150 Warm Home Discount this winter, after the Government confirmed it would remove the “hard to heat” eligibility criteria.
The Government has said the change will see an estimated 6.1 million households receive the discount this winter.
Ofgem said the latest increase was also driven by an increase in electricity balancing costs – incurred by network operators to ensure a stable electricity supply for when there is both too much power and too little power in the system – adding around £1.23 a month to the average household bill.
The End Fuel Poverty Coalition said the latest increase represented a 2.21% year-on-year rise and meant energy bills would be 68% or £713 a year higher than in the winter of 2020-21.
Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
The energy price cap was introduced by the government in January 2019 and sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.
It does not limit total bills because householders still pay for the amount of energy they consume.
Pritti MistryBusiness reporter
The government has announced plans to train and recruit more workers for the UK’s clean energy sector, promising to create 400,000 extra jobs by 2030.
Plumbers, electricians and welders are among 31 priority occupations that are “particularly in demand”, with employment in renewable, wind, solar and nuclear expected to double to 860,000 in five years, ministers have said.
Speaking on the BBC’s Sunday with Laura Kuenssberg programme, Energy Secretary Ed Miliband said thousands of jobs were needed to develop Britain’s clean energy sector to “get bills down for good”.
Welcoming the proposals, Unite the union said: “Well-paid, secure work must be at the heart of any green transition.”
As part of the government’s strategy, five “technical excellence colleges” will be set up to train workers with clean energy skills, with £2.5m in funding going towards pilot schemes in Cheshire, Lincolnshire, and Pembrokeshire, according to the Department for Energy Security and Net Zero (DESNZ).
A new programme is to be launched to match veterans with careers in solar panel installation, wind turbine factories and nuclear power stations, while oil and gas workers could benefit from up to £20m from the UK and Scottish governments for bespoke careers training in clean energy roles.
PA MediaThere would be also be tailored schemes for ex-offenders, school leavers and the unemployed.
He said 10,000 extra jobs would be needed to support the construction of the Sizewell C nuclear power station in Suffolk and described how the Siemen’s wind turbine factory in Hull was “booming”.
Miliband also told the BBC he stood by his pledge to reduce energy bills by £300 by 2030, after bills went up by 2% for millions across the UK under Ofgem’s latest price cap, which sets the maximum price that can be charged for each unit of gas and electricity for millions of househoulds in England, Scotland and Wales.
The increase for October to the end of December means a household using a typical amount of energy will pay £1,755 a year, up £35 a year.
In a statement, Miliband said the plan would bring “a new generation of good industrial jobs” to communities across the UK.
“Our plans will help create an economy in which there is no need to leave your hometown just to find a decent job.
“Thanks to this government’s commitment to clean energy, a generation of young people in our industrial heartlands can have well-paid, secure jobs, from plumbers to electricians and welders.”
According to DESNZ, jobs in the clean energy sector command average salaries of more than £50,000, compared to the UK average of £37,000.
Work and Pensions Secretary Pat McFadden said: “We’re giving workers the skills needed to switch to clean energy, which is good for them, good for industry, and will drive growth across the nation.
“Our new jobs plan will unlock real opportunities and ensure everyone has access to the training and support to secure the well-paid jobs that will power our country’s future.”
Christina McAnea, general secretary of Unison, said the government’s strategy could “help create a UK workforce with highly skilled, fairly paid and secure jobs”.
“Additional funding for apprenticeships and opportunities for young people are crucial too if the UK is to have a bright and clean energy future,” she added.
New Delhi: India’s retail inflation is expected to fall further in October, supported by a high base effect, easing food prices, and the full impact of recent GST reforms, a new report has said. The data compiled by Union Bank of India suggests that inflationary pressures will only rise gradually in the coming months.
The bank said its projection for October’s Consumer Price Index (CPI) inflation is currently tracking below 0.50 per cent. It also expects food inflation to drop sharply and remain in the negative zone during the winter months, as the impact of recent floods has been limited.
Inflation has already eased to an eight-year low, helped by lower food prices and the rationalisation of GST rates. The report lowered its inflation forecast for FY26 to 2.6 per cent from the earlier estimate of 3.1 per cent.
It added that inflation is likely to stay below the RBI’s target range for most of the year and may rise slightly in the fourth quarter due to base effects. In September, CPI — which measures the average change in retail prices of goods and services –showed a notable decline compared to the previous month, highlighting a broad moderation in price growth.
The Consumer Food Price Index (CFPI) stood at -2.28 per cent, indicating that food prices have been falling since June 2025. Data also showed that inflation in rural areas was 1.07 per cent, while urban inflation was slightly higher at 2.04 per cent.
Food inflation remained negative in both segments, at -2.17 per cent in rural areas and -2.47 per cent in urban regions, reflecting the impact of falling prices of vegetables and edible oils. The government attributed this decline to “favourable base effects” and lower prices of key food items such as vegetables, oils, fruits, cereals, pulses, eggs, and fuel.
Economists believe that if the current trend continues, India could maintain a low-inflation environment through the festive and winter seasons, supporting consumer demand and overall economic stability.
Inflation is expected to increase to its highest level for 21 months as more pressure piles on the Chancellor and the Bank of England.
Economists have predicted that Consumer Prices Index (CPI) inflation will have hit 4% in September, when the Office for National Statistics (ONS) reveals its latest data on Wednesday.
It would mark the highest level since January 2024.
Inflation struck 3.8% in July and August amid pressure from rising food prices, as firms highlighted increased tax and labour costs.
Economists at Pantheon Macroeconomics predicted that higher motor fuel and air fare prices would help drive inflation to 4% in September.
It also pointed towards “strong clothes prices” for the month, but indicated this could be offset by “slightly softer” services price inflation.
Economists have also suggested there could be a contribution from increased private school fees.
Some schools were expected to increase fees from the start of the new school year as they staggered higher costs for parents after the Government introduced a 20% VAT rate for private school fees at the start of the year.
September’s predicted jump in inflation could represent a peak in the rising cost of living for UK households.
The Bank of England previously forecast that inflation would peak at around 4% in September before steadily falling.
Pantheon Macroeconomics’ Rob Wood has said he expects inflation to “slow only slightly” in the following months, dipping to 3.8% by the end of the year.
Other economists have been more optimistic, with Investec suggesting it expects the rate to have peaked at 3.9% in September before falling.
Any increase would still highlight a challenging economic backdrop for the Bank of England as it seeks to bring inflation down to its 2% target rate.
On Friday, the Bank’s top economist Huw Pill urged other rate-setters to be “more cautious” about future cuts due to concerns that inflation could stay stubbornly high.
Another rise in inflation could also be a major concern for Chancellor Rachel Reeves, a month ahead of her autumn Budget.
The September inflation rate is typically used to decide the level of increase for many benefits, such as universal credit, tax credits and disability benefits.
This rate is also a key part of the Pension Triple Lock, which is used to decide how much pensions will increase by in the following April.
However, the increase is based on either this inflation rate, average earnings growth between May and July, or 2.5%.
Given earnings growth was confirmed as 4.8%, the inflation rate will only be used if there is a shock acceleration beyond this level.
A rise in inflation in September could result in higher-than-expected spending when the Chancellor is already looking to fill a black hole in the state finances.
However, higher inflation would also contribute to a higher tax take, with the September rate also typically used to calculate some annual tax increases such as for business rates.
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