Ofgem has confirmed that the energy price cap will rise by 4% from 1 October to 31 December, even after the Government's removal of VAT from domestic electricity bills, as high wholesale gas prices, in the Middle East, continue to push up costs. A typical household paying by direct debit will see its annual bill rise from £1,663 to £1,723 — up £60, or roughly £5 a month — the highest level since July 2023. Around 35% of households, some 11 million, are on fixed tariffs and will not be immediately affected. Gas bills are driving most of the rise, up 8%, while electricity-only households will see increases of under 1%. Ofgem said prices remain 52% below the peak of the 2022 energy crisis. Without the VAT cut, the rise would have been closer to 6%, saving the average household about £45 a year until March 2027. Energy secretary Miatta Fahnbulleh said rising bills were being driven up by the Iran war, while consumer groups urged struggling households to contact their supplier or seek support through the Warm Home Discount scheme.