Typical bill to rise by £21 a year in January

Energy bills for a typical household will rise by £21 a year in January, the energy watchdog has announced.

It means someone paying by direct debit and using a typical amount of gas and electricity will pay £1,738 a year, which remains high compared with pre-Covid norms.

Prices rose in October and with a similar level now confirmed for the rest of the winter, charities are warning many will struggle to cope with bills or choose to go without heating at the coldest time of year.

The quarterly cap by regulator Ofgem sets a limit on the cost of each unit of energy, and affects 27 million households in England, Wales and Scotland.