Greater Manchester Mayor Andy Burnham has signalled a new support scheme that could knock up to £200 off household energy bills this winter, even as the regulator confirms a 4 % rise in the energy price cap set for October. The increase, driven by higher wholesale gas prices linked to the Middle East conflict, will push the typical annual bill from £1,663 to £1,723 – roughly £5 extra each month or £60 over a year. While the government highlights existing measures such as a VAT cut on electricity and an expanded warm home discount, Burnham’s proposed Energy Price Protection Payment (EPPP) aims to fill the gap for families still facing fuel poverty.
Ofgem’s October Price Cap Increase
Ofgem announced that the price cap will rise by four per cent in October, reflecting a surge in international gas costs. The regulator’s calculations show the cap moving from £1,663 to £1,723 per year for a typical dual‑fuel household. Neil Kenward, Ofgem’s director general for markets, said: “High international gas prices are continuing to drive energy costs in the UK. We welcome the government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter.” The increase translates to about £5 more per month, or £60 annually, though analysts warn a further rise could follow in the new year if wholesale prices remain elevated.
Government Measures Already in Place
Before any new scheme is introduced, the government points to several existing steps designed to ease the burden. A VAT cut on electricity bills, expected to shave roughly £45 off the October price cap, is already underway. Additionally, a £150 reduction applied to bills in April remains in effect. The warm home discount has been expanded to cover around six million households, with the scheme extended for the rest of the decade. A government spokesperson emphasised that the chancellor is “fully focused on giving families and businesses breathing space and helping ease cost pressures,” citing also a British industrial competitiveness scheme that cuts electricity costs by up to 25 % for more than 10,000 manufacturing firms.
Burnham’s Proposed Energy Price Protection Payment
According to reports from The Telegraph, Burnham is backing a new initiative called the Energy Price Protection Payment (EPPP) that could be launched in January. The payment would target recipients of the warm home discount and other households deemed in need, although claimants would likely have to be in receipt of certain benefits. It remains uncertain whether the EPPP would extend to the estimated 2.5 million additional homes classified as fuel poor, nor has a final figure been settled on the amount each household might receive. The government has not denied the reports but stressed that current measures are already delivering relief.
What Consumers Can Do Now
While policymakers debate further support, Ofgem highlights several actions households can take to mitigate costs. Opting for a fixed tariff can secure rates £100 or more below the October price cap, and many suppliers offer cheaper electricity to smart‑meter users who consume power outside peak periods. Prepayment meters tend to attract the lowest price‑cap rates, potentially saving an average of £45 compared with direct debit payments. Kenward also noted that choosing a fixed deal remains a viable route for those looking to lock in savings before any further increases.
Why it Matters
The looming rise in the energy price cap threatens to squeeze household budgets at a time when inflation is already straining finances. Burnham’s pledge of up to £200 in relief, if realised, could provide a meaningful buffer for millions at risk of fuel poverty, particularly those who fall outside existing aid programmes. At the same time, the government’s reliance on tax cuts and expanded discounts shows a preference for broad‑based measures rather than targeted cash payments. How quickly and generously the EPPP is rolled out will test the administration’s ability to balance fiscal restraint with urgent social protection, and its outcome may shape public trust in the government’s handling of the cost‑of‑living crisis.
