The price cap, which limits how much suppliers can charge consumers for gas and electricity, is going up from October 1 to £1,723 – an increase of £60 or 4pc for the average household.

Ofgem said the latest rise has been driven by higher wholesale gas prices due to the Iran war.

Energy price cap for households in Britain (Image: PA Wire)

The government says its cut to VAT on electricity bills from October will save households £45, but even with the saving, the price cap hike will leave homeowners worse off.

Critics have blamed the country’s pursuit of net zero for failing to deliver cheaper energy.

The government says its cut to VAT on electricity bills from October will save households £45. Pictured, Andy Burnham speaking to members of staff during a visit to Tata Steel in Port Talbot (Image: Ben Birchall)

According to a report by the think tank Civitas, large manufacturers in Britain pay four times more for electricity than their competitors overseas.

It said firms face the highest industrial power prices for more than a decade, despite Britain making some of the fastest progress in decarbonising its electricity system compared to other major manufacturing countries in the EU and worldwide.

The........

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