Households will pay an extra £94 on average per year on their energy bills after Ofgem raised its price cap. 

The regulator has announced it will raise its limit on what gas and electricity suppliers can charge customers from an average of £1,834 to £1,928 from January 1.

The announcement comes a day after the Chancellor announced 27 million workers will benefit from cuts to National Insurance that will save the average person £450 a year.

However, Jeremy Hunt’s Autumn Statement made no mention of any further help to offset household energy bills as he did last winter.

Forecasters Cornwall Insight predict the typical bill will fall to £1,853 from the start of April, but will not drop below today’s level until July next year.

The energy consultancy said recent milder weather was helping to bring down gas prices, and this could help reduce bills next year if it continued.

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