Household energy bills will fall by around £151 a year as the price shock caused by Vladimir Putin’s invasion of Ukraine eases further.

The cap - which limits the amount that a supplier can charge per unit of gas or electricity they sell - will fall to £1,923 from October 1, down from an average of £2,074.

Although it is down from the £2,500 families paid last winter once government subsidies were taken into account, it is still well above the £1,138 that came in February 2022 before Russia invaded Ukraine and triggered a shock to global supplies.

While annual bills are set to fall, seven million households will actually have higher heating bills this winter amid increases in standing order charges and the loss of government subsidies, according to the Resolution Foundation. 

Last winter the average household energy bill was £2,500 per year, thanks to the Government’s Energy Price Guarantee scheme, meaning the Treasury covered the extra cost of the price cap, which stood at £4,279 in January.

Households were also getting £66 per month taken off their bills by the Government.

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