Households on the Yorkshire Coast are facing renewed cost-of-living pressure as energy prices are set to rise.
This week, the energy regulator Ofgem announced a four per cent increase in the energy price cap from October to December 2026, as the colder autumn weather arrives. The energy price cap rose by 13 per cent on average on July 1.
The energy price cap “protects around 22 million households on default tariffs by limiting the maximum rates and standing charges that energy suppliers can charge”. It is updated every three months to reflect changes in the underlying costs of supplying energy.
The rise is likely to be felt particularly acutely in coastal communities such as Scarborough, which has had above-average levels of fuel poverty, lower average earnings, and larger proportions of older residents.
The government has said its cut to VAT on electricity bills would save households £45 and that it was doing more to address cost of living pressures.
The Prime Minister, Andy Burnham, said rising energy bills were “difficult for people and I recognise that”.
Alison Hume, the MP for Scarborough and Whitby, did not respond to a comment request on the price cap and how it is likely to impact residents in the constituency.
The current price cap for a typical household paying by direct debit for gas and electricity is £1,663. Based on the energy use of a typical domestic household, from October, the price cap will rise by £60 per year, or £5 per month, to £1,723 for the average household using both electricity and gas if this level was sustained for a year.
Around 35 per cent of households are on fixed tariffs and will not be affected by this rise- this is about 11 million households.
Neil Kenward, Ofgem’s Director General for Markets, said:
“High international gas prices are continuing to drive energy costs in the UK. We welcome the Government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter.
“Savings are available by choosing a fixed tariff, which are available at £100 or more below the October price cap, and many suppliers offer tariffs with cheaper electricity to smart meter customers for electricity consumed out of peak times. It’s also worth considering different payment methods, with prepayment customers paying the lowest price cap rates, and could save consumers an average of about £45 compared to direct debit.”
Age UK North Yorkshire Coast and Moors holds weekly drop-in sessions offering energy-related advice to residents over the age of 50.
“Advice on energy-saving tips, smart meters, billing issues, switching suppliers, accessing other energy-related grants or finding out what other energy-related support is available to you” can be accessed at the charity’s office at 39, Aberdeen Walk, Scarborough on Thursdays from 10am to midday.
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