Household energy bills in Britain rise from today as regulator Ofgem lifts the price cap by 4%, taking the typical annual bill to £1,723 for the October-to-December quarter. The £60-a-year increase adds roughly £5 a month for the 22 million households on default tariffs.

The rise is driven by wholesale gas prices, which have climbed on the back of the Middle East conflict. The gas unit rate jumps 8.7% to 7.97p per kilowatt-hour, while electricity edges up 0.8% to 26.32p per kWh.

There is some relief in the small print: the government has cut VAT on electricity bills from 5% to zero until March 31, 2027, saving a typical household about £45 a year. Gas bills keep the 5% VAT. The 11 million households on fixed deals are unaffected by the cap change.

Consumer groups are urging everyone to submit a meter reading today so suppliers cannot estimate usage at the higher rate. Anyone struggling is advised to contact their supplier about support schemes, as winter demand is expected to push bills higher still.