Energy bills are rising for millions of households in England, Scotland, and Wales as the new year begins, following a slight increase in the energy price cap by Ofgem. Prices for those on variable tariffs are increasing by 0.2% from now, which equates to a 3% annual increase for a household using a typical amount of gas and electricity, according to Ofgem.

The regulator's energy price cap sets the maximum price for each unit of gas and electricity for those on variable tariffs. It does not cap the total bill, meaning those who use more energy pay more. Ofgem illustrates the cap with a household using a "typical" amount of 11,500 kWh of gas and 2,700 kWh of electricity a year, with a single bill for gas and electricity, settled by direct debit. This household would see a 3 rise in its annual bill, from 1,755 to 1,758.

Campaigners say billpayers are facing another winter of high energy prices, with the latest increase coinciding with the coldest period of the year. Kevin Peachey, cost of living correspondent, noted that changes announced in the Budget should mean a fall in the cost of energy from April.

The amount of energy used varies significantly from household to household.