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Energy bills set to surge 25% in January as Iran war drives gas prices to four-year HIGH

From the Newshound archive · first published 21 September 2026 · last updated 22 September 2026.

John Healey and Andy Burnham share a pint. KPMG warns Chancellor Healey's Budget headroom has been slashed from £23.6bn to roughly £12bn, with tax rises or spending cuts now looking inevitable ahead of the October 28…
John Healey and Andy Burnham share a pint. KPMG warns Chancellor Healey's Budget headroom has been slashed from £23.6bn to roughly £12bn, with tax rises or spending cuts now looking inevitable ahead of the October 28…
Forecasts that households could face bills £500 higher in January, with the Warm Home Discount now covering just 8% of a typical annual energy bill.
Forecasts that households could face bills £500 higher in January, with the Warm Home Discount now covering just 8% of a typical annual energy bill.

Household energy bills are forecast to jump by up to £442 a year from January, with EDF warning the typical annual cost could hit £2,165 — perilously close to the emergency cap imposed after Russia's Ukraine invasion. Wholesale gas prices have topped 208p a therm, their highest since December 2022, driven by fears the Middle East conflict could choke off gas supplies through the Strait of Hormuz. KPMG calculates the Iran war has already slashed Chancellor John Healey's Budget headroom by £9 billion alone, leaving him with just £12 billion to play with ahead of his October Budget.

Bills are already rising 4% in October, meaning families face a brutal double-hit before winter is out.

Lib Dem leader Sir Ed Davey is pressing Healey to cut fuel duty 10p a litre until Christmas, blaming 'Trump's mad war with Iran' for soaring pump prices.

The End Fuel Poverty Coalition warns the Warm Home Discount is now worth just 8% of a typical bill, down from 14% when it was introduced.

MoreCity A.M.Consumer confidence plunges as Labour under fireWales OnlineNew calls for emergency help as bills forecast to rise again - Wales Onlineirishnews.comLib Dems press for 10p fuel duty cut until ChristmasBBC News - PoliticsEd Davey calls for immediate 10p cut to fuel dutyoxfordmail.co.ukUK energy bills could rise 13 per cent in January as gas prices surgeoilprice.comUK Energy Bills Could Jump 25-30% From January as Gas Prices SoarThe SunHow to protect yourself NOW as energy bills set to soar by £427 from January - The SunThe IndependentChancellor given Budget warning as Iran war borrowing costs slash headroom by billionsthetimes.comTypical household energy bill forecast to rise by £442 in January - The Times
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