Lancashire households warned energy bills could hit £2,000 in January –advice on how to cope

The warning comes just weeks after Ofgem increased its energy price cap by 4% on October 1, taking the annualised bill for a typical household paying by Direct Debit from £1,663 to £1,723.

But there could be worse to come.

Leading energy analysts Cornwall Insight are now forecasting that the cap could rise by a further 16% in January, taking the typical annual bill to around £1,999 – an increase of £276 on the current level.

If that forecast proves accurate, it would be the biggest quarterly increase in the energy price cap since January 2023.

The January figure has not yet been confirmed and could change before Ofgem makes its official announcement in November. But with winter approaching and households beginning to use more energy to heat their homes, The Wise Group's Heat and Be Warm service is encouraging people across Preston, Blackburn and surrounding areas to seek advice now.

Reduce energy costs with practical steps

Heather McKirdy, Team Lead for Heat and Be Warm, said: "The latest forecasts are obviously worrying, particularly because any January increase would arrive right in the middle of winter when households tend to use the most energy.

"But people shouldn't feel that there is nothing they can do. There are practical steps households can take to reduce their energy costs, and there may also be financial support available that they don't know about.

“We’ve seen the value of taking this support directly into local communities, including at the recent Preston Jobs Fair, where our team had the opportunity to speak to local people face-to-face about the help available.

"Our message is simple: don't wait until a large bill arrives before asking for help."

Heat and Be Warm

The Heat and Be Warm service provides FREE confidential and impartial advice to eligible households across Preston, Greater Preston, Blackburn, Darwen, Burnley, Hyndburn, Pendle and Rossendale.

The service’s Mentors can help people understand their energy bills, identify practical ways to reduce energy use, check whether they are on the most appropriate tariff and explore grants or other financial support that may be available.

The service can also provide wider help with benefit entitlement, income maximisation and debt where appropriate.

The £1,999 forecast is based on a typical dual-fuel household paying by Direct Debit. The price cap does not limit the total amount a household can pay: it restricts the unit rates and standing charges suppliers can charge customers on standard variable tariffs, meaning households using more energy will pay more.

Cornwall Insight says the predicted January increase is being driven largely by higher wholesale energy costs, with disruption to global gas supplies and low European gas storage levels putting further pressure on prices.

Heather added: "Nobody can say exactly what an individual household's bill will be this winter, but we do know that colder weather means people will need to use more energy.

"That's why getting advice early matters. Sometimes relatively small changes can make a difference, while for other households we may be able to identify much more significant financial support.

"The important thing is to speak to us and find out what your options are. The advice is free and there's absolutely no obligation."

With the January price cap due to be confirmed in November, households have a window of opportunity to review their energy costs and seek support before the coldest months of the year arrive.

Find out more

For free advice and support, call 0800 092 9002, email [email protected] or visit www.heat-thewisegroup.co.uk.