The Labour Party has suffered another blow after it was announced that energy costs have increased by two per cent for millions of UK households. Ofgem announced the increase of the energy price cap for the period covering October to December 2025. The price cap will drive energy bills for the typical household paying by direct debit for gas and electricity from the current £1,720 to £1,755 annually.

Cornwall Insight has forecast the price cap will drop in January to £1,725 per year for a standard dual-fuel household, but has now indicated any respite will prove fleeting. On Wednesday’s (October 1) instalment of BBC Breakfast, several home owners told the programme they were struggling with the cost of gas and electricity.

Prime Minister Sir Keir Starmer 2025 Labour Party Conference

Keir Starmer has been dealt another huge blow (Image: Getty)

Jan Neligan said: “In this day in age, everybody should be allowed to keep warm.”

Highlighting the severity of her situation, Marie Black added: “Some days I live like my grandmother did, with candles here and candles there.”

Craig Lowrey, principal consultant at Cornwall Insight, said: “A dip in bills this January might come as a relief for households, but we shouldn’t mistake this as the start of a trend toward cheaper energy.

“The reduction we are forecasting is being driven by relatively small shifts in the wholesale market. At the same time, new charges like those to support nuclear development are starting to appear on bills, and that’s a sign of things to come.

“Any fall in January would represent a pause rather than a permanent drop. By spring, costs are expected to rise again as network charges and policy costs increase.”

This news is unlikely to be well received by Keir Starmer, who was recently revealed as the least popular prime minister on record. He was asked by ITV’s Robert Peston about an Ipsos survey which gave him a net satisfaction score of minus 66.

Sir Keir pointed to Labour’s landslide general election win in July last year, saying: “I took over our party, and people said you won’t be able to change it – I changed it.

“Then they said you won’t be able to win the election – we won the election with a landslide. Now they say you can’t change the country – I will do the same, I’ll change this country.”