Burnham under fire as UK energy price cap rises 4%

Andy Burnham has been forced to defend his cost‑of‑living agenda after the energy regulator Ofgem announced a 4 per cent rise in the price cap that will take the average annual bill to £1,723 from October.

The move comes on the back of a 13 per cent jump in July and follows a period of volatile global oil prices, with Brent crude hovering around $85 a barrel after briefly touching $110. For many households, the increase means a larger share of disposable income will be spent on heating and electricity.

Opposition leaders have seized on the news. Claire Coutinho, shadow energy secretary, reminded the prime minister that Labour promised a £300 cut, yet bills have risen by almost £400. Victoria Atkins, shadow environment secretary, called the increase “outrageous” and warned that winter fuel allowances may no longer be enough to protect vulnerable families.

“Labour promised to cut energy bills by £300, but they have gone up by nearly £400 instead,” said Coutinho.

Energy price cap and its broader implications

Ofgem’s decision reflects persistent pressure from high international gas prices, and analysts expect a further 9 per cent rise in January, taking the average bill to £1,872. The consultancy Boston Consulting Group projects an additional £264 increase by 2035 and suggests that cutting renewable‑energy levies and expanding data‑centre connections could help lower costs in the long run.

Political fallout and next steps

Burnham acknowledged that scrapping VAT on electricity will not fully offset the surge. He said the government will continue to explore ways to bring prices down over the longer term, including the possibility of removing “policy costs” from bills, a move hinted at by energy secretary Miatta Fahnbulleh.

With the cost‑of‑living crisis remaining a top voter concern, the prime minister’s credibility on economic stewardship is at stake. If further caps are lifted, Labour may need to introduce additional relief measures or risk losing support ahead of the next election.

For more on Burnham’s broader agenda, see the housebuilder stocks reaction to his council‑housing fund.