Energy bills to remain ‘stubbornly high’ in January: ‘Winter cruelly exposes the cost of a cold home’

Energy bills will remain “stubbornly high” in January 2026, as millions of households struggle to afford to put on their heating this winter.

Ofgem’s new energy price cap means that a typical household will now pay £1,758 a year on electricity and gas. That works out at around £146.50 a month.

It does not mean that a household cannot pay more or less than £1,758 a year. If your energy consumption is more than a typical household, you will likely pay more.

This particularly affects large families or disabled people who rely more on electrical equipment.

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Adam Scorer, chief executive of National Energy Action (NEA), said: “We enter the coldest months of the year with energy prices stubbornly high and a warm home out of reach for millions of households.”

Energy bills will only increase by £3 a year for the typical household, because the price cap is only increasing by £3, a rise of around 0.17%.

However, a typical bill is still £500 a year higher than it was in winter 2021, before the cost of living crisis sent energy bills soaring.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “It really is a case of every little doesn’t help as cold weather grips the country and the price cap nudges upward.

“Households are facing their fifth winter of unaffordable energy bills. For millions of people, this cold isn’t an inconvenience, it’s a real risk to health and safety as they struggle to keep homes warm.

“More households are being pushed into cold, damp homes where cutting back on heating, delaying repairs and blocking ventilation increases the danger of carbon monoxide exposure.

“At the same time, the energy industry has made more than £125bn in UK profits since 2020, including firms operating in a declining North Sea.”

It comes at a time when household energy debt is at a record high, with NEA estimating that it will total more than £5 billion in 2026.

Additionally, six million children are living in fuel poverty – meaning their families would struggle to afford to turn on their heating or cook a hot meal.

Scorer added: “There is still another winter to endure. Millions of families will have either gone deep into the red to heat their homes while their children are off school or been blue with cold over Christmas.

“Six million children are estimated to live in fuel poor homes. Winter cruelly exposes the cost of a cold home to young children.”

The government is expected to publish its Warm Homes Plan in January 2026, after it was delayed from late 2025. This is a £15bn plan to cut energy bills and end fuel poverty by upgrading millions of homes with better insulation, solar panels, and low-carbon heating like heat pumps.

It has already announced locally delivered grants for low-income households via the Warm Homes: Local Grant. This is intended for households in England who are on a low income, getting certain benefits or living in a certain postcode area.

Scorer said it “represents the biggest single opportunity to turn the tide on fuel poverty and cold homes”.

He added: “There are many options available to the UK government as it decides how to spend £15 billion. But there are a few key tests. How many more children will spend winter in a warm and comfortable home as a result of the plan?”

Francis also said that ministers “must act now by funding the Warm Homes Plan, fixing energy pricing and introducing a fair social tariff so people can stay safe every winter”.

There is help available if you are struggling with your energy bills – find out more here.

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